AUSTRALIAN WEEKLY MARKET REPORT

Comment

The short term market rally we spoke of 2 weeks ago has certainly kicked in with another positive week finishing 1.5% higher than last week. A surge in local demand in China has had a positive affect on our market. This week was the last designated superfine merino wool sale until Feb/Mar 2024, which also saw some positive activity as European interests utilize the small useful high quality selection available prior to the long break at christmas. European demand remains slow but that did not deter vertically integrated operators from purchasing best quality certified wool this week. Chinese demand for prompt stock still remains whilst exports out of China remain slow. India are still just operating hand to mouth picking up what they need and Japan is very quiet for spinning and weaving types. All this while the currency gained momentum this week, however this did not curb the appetite for the major indent buyers to keep the pressure on this market. Very low passed in rates signal deficient prices in other agricultural commodities as growers cash in on wool.

AWEX Eastern Indicator compared with 17/11/23

Eastern Indicator

Close: 1170

Change in % +1.70

Authentico Index Values

15 Micron

Close: 3340

Change in %: +1.30

16 Micron

Close: 2319

Change in %: -0.70

17 Micron

Close: 1920

Change in %: +1.30

18 Micron

Close: 1738

Change in %: +2.10

19 Micron

Close: 1593

Change in %:  +2.20

Authentico Indicator

Close: 2055

Change in %: +1.10

Forecast

Another large offering next week with almost 50,000 bales on offer, however it is heavily weighted to crossbred and carding wool. This will certainly keep the pressure on the merino section as buyers continue to secure volume prior to the xmas recess. Good weather conditions are keeping shearing on track, whilst growers are in a selling frame of mind. Low passed in rates ensure the wool held in store remains at healthy levels. Well prepared wools are selling very well as we see an improvement in the style and quality, length and strength of the new season wool. Short term demand is expected to continue, especially out of China, whilst Europe remains slow for the near term and more optimistic in the longer term outlook.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 21	11239	10923	2.8%
South	M 21	22111	20899	5.5%
West	F 21	8168	7852	3.9%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 22	T / W	12892
South	M 22	T / W	27353
West	F 22	T / W	8889

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