AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

The general softening of the market this week was more pronounced in the medium to broader merinos. The general market tone is still very positive all things considered. But it is also heavily influenced by the large volume of inferior quality. Longer staple length and lower staple strength when added to the increase in VM, has dampened buyer enthusiasm for these more inferior types. But at a price, they are still being sold to the trade. Low VM and good staple strength are the key for increased competition at the moment. The passed in rate, dominated by inferior types, increased as the week progressed with 20% of the offering failing to reach grower expectation on Thursday in Melbourne. The smaller offering of quality fine wool was again keenly sought after and are certainly performing better than expected in small supply. The Authentico indicator includes down to 15.0 micron.

AWEX Eastern Indicator compared with 18/02/2022

Eastern Indicator

Close: 1407

Change in % -0.98

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Authentico Index Values

15 Micron

Close: 3813

Change in %: +0.11

16 Micron

Close: 3263

Change in %: +0.96

17 Micron

Close: 2868

Change in %: +0.99

18 Micron

Close: 2395

Change in %: +1.05

19 Micron

Close: 1855

Change in %: -1.49

Authentico Indicator

Close: 2798

Change in %: +0.68

Forecast

Not until quantities are reduced or the unlikely event that shipping schedules will improve soon, will we see any significant change in the market. We are confident that there is sufficient interest in wool but exporters are not confident to be able to ship it and financial resources continue to dry up.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 35	15019	13216	12.0%
South	M 35	25150	22382	11%
West	F 35	9951	8430	15.3%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 36	W/T	14109
South	M 36	W/T	25842
West	F 36	W/T	12511

If you want to see the complete Wool Sales Roster click here.