AUSTRALIAN WEEKLY MARKET REPORT
While the general market was cheaper across the board, the standout performance continues to be the few high quality fine wool clips. Not only the NM clips, but all best style 16.0 to 18.0 micron with good specification suitable for the Italian market. They were all dearer for the week. Fine wool is not in demand in China at the moment, with most recent enquiry in China concentrated on 19.5 to 21.0 micron, likely because they are cheaper and more in line with long term average prices. However, in small supply, the better fine micron clips were very keenly sought after. We won’t see volume of these types until mid-August at the earliest but indications are that the quality will be good this season.
AWEX Eastern Indicator compared with 01/07/2022
Change in % -1.61
Authentico Index Values
Change in %: -2.0
Change in %: +2.68
Change in %: +0.82
Change in %: -0.51
Change in %: -1.83
Change in %: +0.38
We still see the odd clip presented for sale that has not been prepared or classed to the industry code of practice. It’s impossible to understand how any wool grower could think that by reducing their quality, will net them a better return in the long run. All it does is drive down quality to the lowest common denominator and prices follow.
We have 61,000 bales rostered for sale next week, the last before the annual three-week recess. Growers must be concerned about the short to medium term impact on their business and the global economy as interest rates rise and discussions about recessions circulate. This volume has increased despite an overall easing in prices and this is in contrast to how growers have acted in the past two years where most have been reluctant to sell into a falling market. No doubt this volume has put some degree of caution in the market. It may well be an overreaction because this kind of volume is very unusual for a weekly sale so there could be some buying opportunities next week.
Auction offering – current week
Auction offering – next week
If you want to see the complete Wool Sales Roster click here.