Australian Weekly Market Report
Published August 17, 2018 by Tim Marwedel
General Market Summary
Week 07 – 2018 will be well remembered with the market moving further to record levels at a rate rarely seen. According to AWEX reports, the price rise on Wednesday was the largest daily increase since 2002, the weekly result was the largest weekly increase since the same time and the AWEX EMI at another all time high. This was not expected. Currency fluctuations were expected to help local prices but not to the extent they did. The volume eventually offered was just over 36,000 bales and an incredibly low 1.5% was passed in nationally for the week. The increase in the average market is well published but the market for the best fine wool was even stronger. The better types 16.0 / 18.0 micron were being bought at best in both the fleece and pieces range. It’s unlikely to be an increase in demand that is fuelling this, rather ongoing concerns for supply and requirements for prompt production.
AWEX Eastern Indicator compared with 10/08/2018
Eastern Indicator
Close: 2116
Change in %: +6.33%
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Schneider Indicators compared with 10/08/2018
15 Micron (*)
Close: 3701
Change in %: +6.87
16 Micron
Close: 3172
Change in %: + 3.69
17 Micron
Close: 2809
Change in %: +8.29
18 Micron
Close: 2508
Change in %: +7.09
19 Micron
Close: 2370
Change in %: +6.52
Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.
Wool indicators are anyway based on Australian Dollar.
If you want to learn more about SCHNEIDER indicators Click here.
Forecast
Less than 30,000 bales for offer next week including no sale in Fremantle was a likely factor playing on buyers minds this week. It is becoming difficult to source the required wool. While the current market doesn’t seem to be behaving in a ‘normal’ fashion, we note that week 6 and week 7 last year (August 2017) were also very strong with an overall increase in the EMI of 5.9% over those two weeks. In the last two weeks, while it might seem alarming, the market has increased by a similar percentage, 6.8%. Wool delivery requirements for October must play a part in this trend. Last year the market then fell in week 8 before settling through September and picked up again in October. This trend is often the case. Time will tell if this week was an extraordinary anomaly. Small sales, like the one next week, often result in a market that we least expect.
Auction offering – current week
Selling Centres for week 07
Market Sale Offered Sold Passed In
North S 07 12871 12705 1.3%
South M 07 18971 18681 1.5%
West F 07 4460 4373 2.0%
Auction offering – next week
Market Sale Sale days Volume
North S 08 T-W 10447
South M 08 T-W 19366
West no sale
If you want to see the complete Wool Sales Roster click here.
The Schneider Group