AUSTRALIAN WEEKLY MARKET REPORT

Comment

There was little change in the market but on average, prices were softer overall. The European market is not as positive as it was a couple of months ago. While supply is good for fine wool at the moment, we are seeing a reduction in the price gap between the very best and the average types. The better lots are no doubt the best value at the moment with premiums well below where they were six months ago, when supply was poor. Simple supply and demand scenario. The Chinese market is concentrating on the cheaper materials as well. The crossbred market, while coming from historic lows and below the cost of production, are improving with new products using these wools proving to be popular on the market. In the merino sector, the Chinese sector is more interested in 19.5 and 21.0 micron at this point in time while the market for carbonised wool remains poor. A New Zealand fine wool offering was presented for sale in Melbourne. Around 28% of that selection was passed in, a reflection of the market for the best fine types.  

AWEX Eastern Indicator compared with 06/10/23

Eastern Indicator

Close: 1128

Change in % -0.8

Authentico Index Values

15 Micron

Close: 3530

Change in %: -0.4

16 Micron

Close: 2339

Change in %: -2.4

17 Micron

Close: 1828

Change in %: -0.2

18 Micron

Close: 1630

Change in %: -1.1

19 Micron

Close: 1519

Change in %:  -1.5

Authentico Indicator

Close: 2010

Change in %: -1.1

Forecast

We have a designated superfine sale in Sydney and expect to see some nice fine and superfine types on offer in Melbourne from Victoria and Tasmania in the coming weeks. This should result in little change to the market sentiment for fine wool. Vegetable matter in the offering is lower and we’re starting to see more tender wool as a result of the autumn break. As the selection changes, the market dynamics also change. Indent orders (not necessarily local traders) are dominating the market at the moment but if the market stays around these levels for a couple more weeks, we hope to see more trading activity with our major wool trading partner, China, as a result.  

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 15	11221	10722	4.4%
South	M 15	19614	17757	9.5%
West	F 15	7171	6352	11.4%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 16	T / W	11154
South	M 16	T / W	24150
West	F 16	T / W	9248

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