AUSTRALIAN WEEKLY MARKET REPORT
After last week’s more positive tone, the market has struggled for any clear direction this week. A weakening US Dollar against all major currencies early in the week, left wool dearer in the main user currency. With limited demand, this was a burden too great for the market to be able to sustain. The one positive note has been the strong performance, all things considered, of the better fine wool. There appears less fine wool in general at the moment, surely contributing to this trend, but we now head into the main period for fine wool. On average this week, the Sydney merino fleece catalogue (18.6 micron) and Melbourne (19.7 micron) were about 0.5 micron broader than the corresponding sales in 2019. A better season and supplementary feeding programs during the drought would be responsible for this.
The quality from the New England region, usually the source of much of the best fine wool, will be significantly affected this year. The change in season around February 2020 has resulted in a large percentage of ‘middle break’ wools and the big rains that followed have created an abundance of feed and an increase in grass seed in the wool.
AWEX Eastern Indicator compared with 14/08/2020
Change in % -5.87
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Authentico Index Values
Change in %: +0.05
Change in %: +1.63
Change in %: -3.81
Change in %: -3.38
Change in %: -4.69
Change in %: -2.01
No sale in Fremantle next week with the annual Wool Week Annual General Meetings to be held on Thursday by zoom tele-conferencing. It will be a smaller national offering.
The Wool Production Forecasting Committee has presented their latest forecast for the 2020/2021 wool season. Wool Production is expected to decline by 1.1% to 280 million kg’s following on from the 5.5% decline in the 2019/2020 season. The 1.1% fall in volume is comprised of a reduction in shorn sheep numbers by 5.5% but an expected increase in average wool cut per head of 2.9% due to the better season.
Auction offering – current week
Market Sale Offered Sold Passed In
North S 08 8210 6483 21.0%
South M 08 17497 13918 20.5%
West F 08 5687 3168 44.3%
Auction offering – next week
Market Sale Sale days Volume
North S 09 T / W 8147
South M 09 T / W 14199
West F 09 no sale
If you want to see the complete Wool Sales Roster click here.