AUSTRALIAN WEEKLY MARKET REPORT
Exporters continue to face difficulties with shipping schedules. Delays from the dump, through the shipping terminals and a lack of space on the available ships are all impacting on the wool supply chain. There is no doubt that covid related issues are impacting on staff levels. Customers are agitated and exporters are facing delays in payment with most contracts reliant on letter of credit (LC) terms and shipment dates. This is limiting the cash available to trade the large volume on offer. At the same time, we’ve seen a spike in supply with next week’s Melbourne sale listed for 32,000 bales. It’s unlikely that this volume will flow onto the market following the correction this week, but still enough to put some doubt in customers minds in the short term. With the exception of the best fine wool which closed firm, all other types and descriptions eased over the week. The Authentico indicator, focusing on farms who no longer mules, was 0.5% easier and performed better than the overall market (AWEX EMI down 1.9%). We’ve often said that the mulesing status can be a good insurance policy for wool growers. The NM/CM clips are not as affected in a falling market when compared to the general supply.
AWEX Eastern Indicator compared with 04/02/2022
Change in % -1.86
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +1.77
Change in %: +2.14
Change in %: -1.23
Change in %: -1.58
Change in %: -4.1
Change in %: -0.46
The sharp increase in supply next week has in some way been impacted by previous delays in shearing. AWTA test figures for January were low as a result of wet weather. This wool is now flowing onto the market as previously held up shearing is now completed.
The staple length of the Australian clip is certainly becoming a major issue for European interests who have generally required a lower co-efficient in variation of length (in top). The push towards a plainer type of sheep, the tremendous season and delays in shearing due to the weather, are all factors resulting in a general increase in the staple length of our clip. Fleece lines well in excess of 100mm greasy staple length are now more common than not, even for superfine wool.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 32 11933 10236 14.2%
South M 32 21706 18866 13.1%
West F 32 12720 9203 27.6%
Auction offering – next week
Market Sale Sale days Volume
North S 33 T / W 12464
South M 33 T / W / T 32640
West F 33 T / W 10698
If you want to see the complete Wool Sales Roster click here.