Archive for category: Australian Weekly Market Report

Comment

The market was dearer again, following on from the more positive tone last week. The finest and broadest merino types recorded the biggest gains. This would largely be a reflection of supply. There is still limited supply of fine and broad merinos with most of the selection fitting into the 18.5 / 20.0 – micron range. With the buyer activity yesterday focused strongly on securing quantity, the market premiums for quality were limited. All types and descriptions within a particular micron range sold within a narrow range of price. As a result, the low yields and high mid break lots sold with minimal discount.

AWEX Eastern Indicator compared with 03/07/2020

Eastern Indicator

Close: 1134

Change in % +1.61

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2353

Change in %:  -0.72

16 Micron

Close: 2045

Change in %: +4.23

17 Micron

Close: 1792

Change in %: +4.13

18 Micron

Close: 1549

Change in %: +0.65

19 Micron

Close: 1400

Change in %: -1.06

Authentico Indicator

Close: 1787

Change in %: +2.17

Forecast

Sales will resume in the first week of August. The positive market finish should help to promote some trading activity during the recess.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 02                     11273                       10645                 5.6%

South                     M 02                    19682                       18465                 6.2%

West                       F 02                      4307                         3970                  7.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      recess

South                      recess

West                        recess

 

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

Comment

The market closed on a positive tone for the 2019 wool selling season. After a general easing of prices across the board on Tuesday, there was more widespread interest at Wednesday’s auction with most descriptions tending slightly dearer. This was a good result under the circumstances. Almost 25,000 bales were sold to the trade to the value of M$31.8.

There were a few nice ultrafine clips that offered some good quality 14.0/14.5 micron bales in Melbourne and these were a clear standout. Competition was very strong and these bales sold to levels similar to those pre Covid-19. Carding types which have seen the greatest competition in recent weeks, were the types that suffered the most this week. Clearly it has been a lack of supply in these types that was the key driver on price.

AWEX Eastern Indicator compared with 19/06/2020

Eastern Indicator

Close: 1110

Change in % -2.54

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2392

Change in %:  -0.95

16 Micron

Close: 1975

Change in %: -1.29

17 Micron

Close: 1739

Change in %: +1.05

18 Micron

Close: 1528

Change in %: -1.99

19 Micron

Close: 1414

Change in %: -1.19

Authentico Indicator

Close: 1756

Change in %: -0.73

Forecast

The AWEX EMI has closed 35% lower when compared to this time last year. Our Authentico Indicator based on good performing NM and CM compliant merino clips is 21% lower for the year. The superfine end, particularly 15.0 micron have not been as greatly affected and closed around about similar levels compared to 12 months prior and has had a positive impacted on our Index. The 19.0 micron Authentico Index value on the other hand is 34% lower, more in line with the EMI. Sales continue next week with sale 01 of the new selling season and approximately 31,000 bales available. The auction will be held Wednesday and Thursday to coincide with the new financial year.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 52                     7176                         6448                10.1%

South                     M 52                    14618                       12868               12.0%

West                       F 52                      6235                         5488                12.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 01                        W/T                           9677

South                     M 01                        W/T                          14291

West                        F 01                        W/T                           7104

 

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

Comment

The market eased by about 1.5% over the two selling days this week. The average yield of the offering remains a difficult issue for exporters to manage and this is obvious in the competition. The sale result for the better yielding wools were more positive than the reported market averages with prices remaining fairly firm for these higher yielding types across the whole range.

AWEX Eastern Indicator compared with 05/06/2020

Eastern Indicator

Close: 1171

Change in % -1.01

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2491

Change in %:  +1.59

16 Micron

Close: 2021

Change in %: -1.41

17 Micron

Close: 1762

Change in %: -1.67

18 Micron

Close: 1603

Change in %: -1.29

19 Micron

Close: 1485

Change in %: -2.56

Authentico Indicator

Close: 1811

Change in %: -1.15

Forecast

There is little premium for the very best lots which now appear best value to us. Chinese interests dominate and there is stronger interest in the shorter combing wools for knitting types, particularly the finer microns. The price gap between best skirtings and average fleece is minimal and crossbreds and carding wools continue to be in more favour. The cardings in particular, are in very small supply which may be more of a factor than demand.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 50                     5383                         4725                12.2%

South                     M 50                    12180                       10806               11.3%

West                       F 50                     4222                          3615                 14.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 51                        T/W                            6681

South                     M 51                        T/W                           10138

West                        F 51                       no sale

 

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

Comment

Small but positive gains were seen across the whole offering this week. The clearance rate was higher as well with more than 17,000 bales sold, or 92% of the bales available. The notable factor was that all types from superfine merino to crossbred and cardings all improved by similar percentages. We are seeing a few ultrafine wools, 15.5 and finer, that are attracting good competition in small supply. The selection is also starting to improve in terms of yield and we expect discounts for low yield to reduce as the selection changes.

AWEX Eastern Indicator compared with 22/05/2020

Eastern Indicator

Close: 1170

Change in % +1.30

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2420

Change in %:  +3.42

16 Micron

Close: 2034

Change in %: -0.29

17 Micron

Close: 1769

Change in %: +1.03

18 Micron

Close: 1630

Change in %: +1.81

19 Micron

Close: 1491

Change in %: +1.50

Authentico Indicator

Close: 1818

Change in %: +1.28

Forecast

Some of the early shorn clips from the New England are now coming into store. A couple of factors will limit the supply of quality ultrafine wool that should help prices in the medium term despite the general limited interest from Europe. Tensile strength due to the change in season around February is resulting in more tender wool, with a large number of the lines with high mid break. Secondly the VM content will be completely different when compared with the past few seasons. The drought resulted in little to no VM in the clip up until now. Some early shorn clips have fleece lines approaching 1.5 to 2% vm and skirtings around 7%. A very different scenario for first stage processors like us. We should remind growers that the grass seed (shive) type VM is a very difficult to remove in the combing process and all care should be taken this year to remove the higher VM necks to reduce the impact of VM in the best fleece lines.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 48                     5429                         5216                 3.9%

South                     M 48                     9270                        8430                 9.1%

West                       F 48                      4129                         3697                10.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 49                        T-W                           7184

South                     M 49                        T-W                           9952

West                        F 49                        no sale

 

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

Comment

After several weeks of negative territory for the wool market we saw a glimmer of hope this week returning into positive territory for most merino types. Best style and strength, high yielding wool were very well supported, with low yielding low strength high mid break wool carrying significant discount. Grower resistance still evident with a slightly higher passed and withdrawn rate this week. The continuation of staggered selling mechanisms should help the market recover over an extended period of time, we just need to be patient and all sectors of the industry work together for the best outcomes.

AWEX Eastern Indicator compared with 01/05/2020

Eastern Indicator

Close: 1179

Change in % +0.76

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Authentico Index Values

15 Micron

Close: 2294

Change in %:  -0.48

16 Micron

Close: 2040

Change in %: -0.49

17 Micron

Close: 1770

Change in %: -1.56

18 Micron

Close: 1630

Change in %: +0.74

19 Micron

Close: 1510

Change in %: +1.48

Authentico Indicator

Close: 1808

Change in %: -0.33

Forecast

The coming weeks see similar sized sales around 20/22,000 bales on offer. The global situation remains relatively unchanged, with currencies showing some volatility. Shifts in the wool market will mostly relate to shipping times and cut-offs as we progress over the next few weeks. Political posturing will also influence commodity prices as we wait and see the impact from China in the coming weeks and months. Globally the world textile industry has lost confidence so we all need to keep a level head to ensure safe passage out of an extreme situation. We need true leadership from our industry heads to take us forward into a new age of wool production, wool processing and retailing for the future.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 46                     6078                         5788                4.8%

South                     M 46                    12593                        11163               11.4%

West                       F 46                      4700                          4364               7.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 47                         W                               6672

South                     M 47                       T-W                           10404

West                        F 47                         T                               4614

 

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