AUSTRALIAN WEEKLY MARKET REPORT
Finally, a more positive market tone. Client bids under the market were being rejected by the exporters and processors leading into the auction as supply tightened further. Growers have shown a reluctance to accept prices in a dramatically falling market leaving less than 20,000 bales sold for the week. This led to a more cautious trading approach from the large exporters. There was enough positive sentiment around prior to the sale. Most exporters of the belief that prices, if not at the bottom, were very close. This was on the basis of more interest and bids closer to spot market prices leading into the sale.
The selection of fine wool was better this week and this has helped the overall averages, including our Authentico Index’s. There was more interest from the Italian sector on 18.0 micron and finer with better style and specification types attracting strong competition. Of particular strength again this week was the 16.0-micron range. Many of the better New England region clips in this range are also NM and this is obviously attracting more attention from Europe. This is encouraging but worth noting that the current 16.0 micron levels are approximately 40% lower than end August 2018. The Authentico Indicator was 1.68% higher this week, primarily as a result of the better 16.0 micron result. 16.0 is not included in the AWEX EMI.
AWEX Eastern Indicator compared with 30/08/2019
Change in % -0.73
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +0.58
Change in %: +4.63
Change in %: +2.39
Change in %: +1.09
Change in %: -4.27
Change in %: +1.68
28,000 bales rostered for sale next week. There is grower held bales in store waiting for a clearer market trend. Despite this, the Sydney sale is restricted to a one-day sale on Wednesday. With the benchmark AWEX EMI improving in US currency this week, we hope that this gives the market some confidence to return at these reduced levels. Ultimately, it’s a matter of confidence. No doubt demand is soft but consumption of wool will continue.
Auction offering – current week
Selling Centres for week 10
Market Sale Offered Sold Passed In
North S 10 7039 5990 14.9%
South M 10 11619 10529 9.4%
West F 10 3036 2675 11.9%
Auction offering – next week
Market Sale Sale days Volume
North S 11 W 6289
South M 11 W-T 16237
West F 11 W-T 5397
If you want to see the complete Wool Sales Roster click here.