AUSTRALIAN WEEKLY MARKET REPORT

Comment

The fundamentals have not changed the landscape this week with weaker trading on Tuesday and slightly more improved activity on Wednesday as the sales close for another selling season. Currency still playing a significant role in the market at the moment as most prices were currency adjusted to meet the market. Struggling global economies particularly in consumer spending have created a genuine lack of demand for wool at the present time. The market continues to be underpinned by traders trying to reduce stock levels and generate some activity as wool looks great value in this price structure. Clear and strong signals still coming from global brands for a larger volume of non-mulesed wool as the smaller wool producing nations lack the quantity and variety of types available in the Australian wool clip. Strong competition for free or nearly free types as the selection at this time of the year continues to provide many wools with higher levels of vegetable matter that are just not suitable for exporters client requirements.

AWEX Eastern Indicator compared with 23/06/23

Eastern Indicator

Close: 1126

Change in % -1.10

Authentico Index Values

15 Micron

Close: 3584

Change in %: -2.30

16 Micron

Close: 2577

Change in %: -0.60

17 Micron

Close: 2034

Change in %: -2.40

18 Micron

Close: 1735

Change in %: -1.50

19 Micron

Close: 1565

Change in %: -0.40

Authentico Indicator

Close: 2161

Change in %: -1.60

Forecast

As we say goodbye to one season and a new one opens next week for 2023/2024, we have approximately 43,000 bales on offer nationally. Where will the recovery come from? 80% of our wool is traded and processed in China, so we rely heavily on a Chinese financial recovery to kick start the next season. Consumer confidence has been slower than expected in China, but hopefully with the right fiscal management this will speed up in the coming weeks and months. India is still a shining light at present with healthy volumes being sourced and supplied, with slow and steady growth from Europe and Japan. High quality superfine 17.5 micron and finer look best value in the current trend whilst we see more general competition in the broader merino categories 19.5 to 21.5 micron range.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 52	12103	11004	9.1%
South	M 52	23093	19742	14.5%
West	F 52	8418	6670	18.1%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 01	T / W	13755
South	M 01	T / W	18491
West	F 01	T / W	10632

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