AUSTRALIAN WEEKLY MARKET REPORT

Comment

The wool market closed the week in positive territory with good activity on high quality, low vm fleece and skirting wool which was in keen demand. Good demand from local processors in China again activated the market at the close. We are hearing of quiet optimism starting to emerge out of Europe which is very encouraging. The Authentico indicators bounced around a bit throughout the week,   closing in positive territory 2% above last week with the focus clearly on NM/CM. A small volume of RWS accredited wool was sold with healthy incentives to the Chinese sector. Despite the A$ being 19% higher than this time last year we still see a healthy market due to Chinese participation during the first and second quarters of this year.

 

 

AWEX Eastern Indicator compared with 30/04/2021

Eastern Indicator

Close: 1306

Change in % -0.98

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

Authentico Index Values

15 Micron

Close: 3360

Change in %:  +2.40

16 Micron

Close: 2915

Change in %: +5.0

17 Micron

Close: 2370

Change in %: -0.83

18 Micron

Close: 2030

Change in %: -0.97

19 Micron

Close: 1705

Change in %: -2.0

Authentico Indicator

Close: 2409

Change in %: +0.85

Forecast

The large national offering of 46,000 bales currently rostered for sale next week is likely to put some pressure on the general market. However, those better specification wools with low VM and, in particular, those with the NM status, will still be keenly sought after. The general offering is quite high in VM and this is making it more difficult for buyers to average much of the offering into orders that must average VM 1.0%.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 46                  13600                   12241                10.0%

South                     M 46                 26850                   23520               12.4%

West                       F 46                   9321                      8047                13.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 47                     T-W                         13332

South                     M 47                     T-W                         24872

West                       F 47                      T-W                          7725

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

We are still seeing large national offerings. As the market settled a little this week, the passed in rate and the rate in which wool was withdrawn prior to sale increased. This time last week 48,000 bales were expected to go under the hammer, in the end only 40,000 were sold. The biggest passed in percentage is in the crossbred section where prices remain low as supply increases and demand for crossbred wool is poor. We are noticing a big difference in the price offered on the crossbreds that have been well prepared compared to those that are just ‘thrown’ together without effort to maintain quality.

Despite the national indicators easing, the Authentico indicators were slightly more positive in comparison as they focus more on quality fine fleece wool and those with NM and CM mulesing status only.

AWEX Eastern Indicator compared with 30/04/2021

Eastern Indicator

Close: 1319

Change in % -1.71

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

Authentico Index Values

15 Micron

Close: 3280

Change in %:  +2.92

16 Micron

Close: 2775

Change in %: +1.91

17 Micron

Close: 2390

Change in %: -0.5

18 Micron

Close: 2051

Change in %: UNCH

19 Micron

Close: 1740

Change in %: -2.14

Authentico Indicator

Close: 2389

Change in %: +0.5

Forecast

The large national offering of 54,000 bales currently rostered for sale next week is likely to put some pressure on the general market. However, those better specification wools with low VM and, in particular, those with the NM status, will still be keenly sought after. The general offering is quite high in VM and this is making it more difficult for buyers to average much of the offering into orders that must average VM 1.0%.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 45                  13570                   12309                9.3%

South                     M 45                 23881                   20091               15.9%

West                       F 45                   10107                    7903                21.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 46                     T-W                             14096

South                     M 46                   T-W-T                           30196

West                       F 46                      T-W                             10460

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market attention shifted towards the medium and broader merino types this week. While not for the first time, there was word around of pending Chinese uniform orders. There was obvious interest coming from outside of China, even if in small volume, it was enough competition to stimulate the market. There is also the usual swing between micron groups as the price and selection of fine wool has pushed the price a little out of reach for some. The decision for the buyer focus in the 19.0 micron and broader range this week could be based primarily on market price. The small supply of fine wool at the moment resulted in sustained pressure on fine wool prices regardless.

A strong Australian dollar, generally influenced by commodity prices and global confidence, was expected to dampen the wool market this week but it had little effect with prices in USD values increasing more than in AUD values. The AWEX EMI (AUD) is now at the highest level since end March 2020 but still a way off the peak in January, just prior to the shock that was to arrive on the global stage shortly after.

AWEX Eastern Indicator compared with 23/04/2021

Eastern Indicator

Close: 1342

Change in % +2.29

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

Authentico Index Values

15 Micron

Close: 3187

Change in %:  +5.36

16 Micron

Close: 2723

Change in %: +3.61

17 Micron

Close: 2402

Change in %: +2.83

18 Micron

Close: 2051

Change in %: +1.23

19 Micron

Close: 1778

Change in %: +3.79

Authentico Indicator

Close: 2377

Change in %: +2.99

Forecast

The market outlook for wool continues to look positive as we again sold more wool at auction than we would traditionally around this time of the season and the market is still reacting strongly. How much of the current exported volume is destined for stock is unknown. It is possible that processors and manufacturers are building inventory on the expectation of better global conditions in the northern hemisphere next winter. Due to production timing, the raw materials need to be on the move now in order to be ready at retail later in the year. If you don’t have the stock and conditions do improve, as many do hope and suggest, then the risk is to lose another season. Any improvement in consumer sentiment must also be good for the wool market long term and this will be influencing the decisions of those who are more optimistic.

The Wool Production forecast committee has been meeting and we expect an announcement shortly regarding the latest forecast for the current season. Expectations are for a modest gain of around 2% on last year with improved season conditions the main catalyst.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 44                  12017                   11256                6.3%

South                     M 44                 25073                  23448                6.5%

West                       F 44                  10356                    9692                 6.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 45                     T-W                             14082

South                     M 45                     T-W                             24910

West                       F 45                      T-W                              9253

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market improved this week particularly in the 18.5 micron and finer categories where we saw most competition across a wide range of types. Local Chinese processing interest created healthy activity in 165/175/185 micron fleece, pieces and belly types. Merino cardings for scouring, carbonizing and knitting types were all well supported with healthy gains over the week. We are starting to see small optimistic movement from Europe and India for the second half of this year, but for the short term main interest is coming from China as outlined above. The A$ trading in a tight range seems to be helping exporters, however we are still faced with containerization and shipping delays which up to this point have not dampened the enthusiasm to buy.

 

AWEX Eastern Indicator compared with 01/04/2021

Eastern Indicator

Close: 1312

Change in % +1.62

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

Authentico Index Values

15 Micron

Close: 3025

Change in %:  +2.5

16 Micron

Close: 2628

Change in %: +0.61

17 Micron

Close: 2336

Change in %: +1.16

18 Micron

Close: 2026

Change in %: +1.19

19 Micron

Close: 1713

Change in %: +0.17

Authentico Indicator

Close: 2308

Change in %: +1.13

Forecast

The early seasonal cold and wet conditions are taking its toll in certain wool growing areas slowing shearing rates and warehouses already quite full from passed and held grower stockpiles could slightly influence the market with smaller volumes in the coming weeks. Add to this the deterioration of the selection as autumn shorn wools are carrying higher vm levels leaving exporters scrambling to find low vm through this period to satisfy demand. Demand seems healthy particularly out of China at present which should be enough to keep the market ticking along a positive path.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 43                 9692                    9155                 5.5%

South                     M 43                 21013                  18297               12.9%

West                       F 43                   9697                    8642                10.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 44                     T-W                             12,493

South                     M 44                     T-W-T                        27,286

West                       F 44                      T-W                             11,042

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Sales have resumed after the Easter recess. The market remains keenest on the finer types and also the shorter knitting types and all cardings. The medium and broader fleece are deteriorating in terms of quality and dominate the offering in terms of volume. There is no doubt the inferior quality on offer is impacting on the market. Considering this, the market is still holding relatively well for these types. However, there is no doubt that the interest is keenest on 18.5 micron and finer. The better fleece types are in small supply and attracting solid support from the best weavers while the inferior types are more generally sought by a wide range of buyers with China dominating. This includes all fine micron tender fleece types. In the skirting and carding market, prices have remained very firm all week.

AWEX Eastern Indicator compared with 01/04/2021

Eastern Indicator

Close: 1291

Change in % -0.69

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

Authentico Index Values

15 Micron

Close: 2949

Change in %:  -1.7

16 Micron

Close: 2612

Change in %: +2.19

17 Micron

Close: 2309

Change in %: +1.67

18 Micron

Close: 2002

Change in %: +0.86

19 Micron

Close: 1710

Change in %: +0.53

Authentico Indicator

Close: 2282

Change in %: +1.06

Forecast

The recent rain along the eastern seaboard of Australia has slowed sheering for a few weeks but grower held stock continues to filter onto the market. As we head into the period where fresh supply will be limited, this grower held stock will be a useful resource.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 42                  11344                   9949                12.3%

South                     M 42                 25030                  21964              12.2%

West                       F 42                   9882                    7793                21.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 43                     T-W                             10,241

South                     M 43                     T-W                             24,238

West                       F 43                      T-W                             11,065

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The wool market continues to trade within a healthy range 1280/1320 EMI which seems sustainable with current demand and currency levels. China has been a revelation during this period with local processing demand assisting despite congestion in the containerization and shipping space where significant delays are being experienced. NM has clearly become the base standard for many international markets with RWS now the new frontier in terms of significant price benefits for wool growers.

AWEX Eastern Indicator compared with 19/03/2021

Eastern Indicator

Close: 1300

Change in % +1.16

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

Authentico Index Values

15 Micron

Close: 3000

Change in %:  +0.66

16 Micron

Close: 2556

Change in %: +2.44

17 Micron

Close: 2271

Change in %: +1.74

18 Micron

Close: 1985

Change in %: +3.11

19 Micron

Close: 1701

Change in %: +0.29

Authentico Indicator

Close: 2258

Change in %: +1.80

Forecast

Next week we have a one week recess before wool sales resume week commencing Monday April 12th, 2021.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 40                13226                  12127                8.3%

South                     M 40                21595                  19704               8.8%

West                       F 40                  9399                    8204               12.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 41                     RECESS

South                     M 41                     RECESS

West                       F 41                      RECESS

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market was expected to continue to ease but the weaker Australian Dollar against the USD helped to stabilise the market. Prices were generally firm on Tuesday but improved on Wednesday, no doubt assisted by the more favorable currency exchange rate. The interest on Wednesday was more focused on fine and few superfine merino types and the shorter knitting types consisting of tender fleece and prems.

AWEX Eastern Indicator compared with 19/03/2021

Eastern Indicator

Close: 1285

Change in % +0.63

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

Authentico Index Values

15 Micron

Close: 3020

Change in %:  -0.17

16 Micron

Close: 2495

Change in %: +0.08

17 Micron

Close: 2232

Change in %: +0.63

18 Micron

Close: 1925

Change in %: -0.16

19 Micron

Close: 1696

Change in %: +0.41

Authentico Indicator

Close: 2218

Change in %: +0.18

Forecast

Next week’s sale precedes the one-week Easter recess. The result this week will no doubt add some more confidence into an already very sound and resilient wool market. Any further movements on the currency markets will be closely watched between now and Tuesday with the Australian dollar currently in a weakening trend against the USD.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 39                     9511                          8986                5.5%

South                     M 39                    19810                       17732               10.5%

West                       F 39                      9243                         8238               10.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 40                     T – W                          13202

South                     M 40                     T – W                          25945

West                       F 40                      T – W                          9682

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market eased this week but considering the volume and generally inferior selection, the small daily movement must be considered a fairly good result. We continue to hear exporters are waiting for available vessels to finalise contracts and have available letters of credit opened. Global shipments are impacted by general congestion for all international freight. This is impacting on current cash flow and is not expected to be an ongoing issue. As a result, the market appears to be in a holding pattern for the moment.

AWEX Eastern Indicator compared with 12/03/2021

Eastern Indicator

Close: 1277

Change in % -2.44

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

Authentico Index Values

15 Micron

Close: 3025

Change in %:  -2.45

16 Micron

Close: 2493

Change in %: -2.84

17 Micron

Close: 2218

Change in %: -1.73

18 Micron

Close: 1928

Change in %: -1.53

19 Micron

Close: 1689

Change in %: -2.65

Authentico Indicator

Close: 2214

Change in %: -2.08

Forecast

The market was showing improved confidence in Melbourne on Thursday which is a positive sign that there is some good underlying demand for greasy wool. Best fine types were very firm while the broader merinos were a touch dearer on the last day of the sale.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 38                     12853                       10815               15.9%

South                     M 38                    27328                       23059               15.6%

West                       F 38                      8228                         6367                22.6%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 39                      T – W                         10995

South                     M 39                     T – W                          24861

West                       F 39                      T – W                          10722

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Demand for NM and CM wool this week remained very consistent and this has helped to maintain our Authentico Index values around similar levels to last week. Keenest interest was around 18.5 to 21.5 micron with the selection of finer types very limited.

The general expectation leading into each sale has been for a softening trend in the market, particularly with the large volume sales that we are seeing week to week. However, the market has been extremely resilient despite the quality of the selection also deteriorating. We would have thought that the quantity on offer would have been dropping by now but grower held wool has been propping up the volume each week. A lot of this wool has been drought affected types held for 12 months or so and an enormous quantity of crossbred lamb’s wool. The passed in rate seems high across each sale but a closer look will indicate that the percentage of crossbred types being passed in is much greater than the percentage of merinos not selling to the trade.

AWEX Eastern Indicator compared with 05/03/2021

Eastern Indicator

Close: 1309

Change in % -0.08

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

Authentico Index Values

15 Micron

Close: 3101

Change in %:  -3.96

16 Micron

Close: 2566

Change in %: -1.53

17 Micron

Close: 2257

Change in %: +0.04

18 Micron

Close: 1958

Change in %: +0.31

19 Micron

Close: 1735

Change in %: +0.35

Authentico Indicator

Close: 2261

Change in %: -0.79

Forecast

The positive sign this week was the way that the Fremantle sale closed. Despite a slight easing in Sydney and Melbourne on Thursday, the Fremantle sale closed a little dearer. This is an unusual reaction and a sign that perhaps demand for greasy wool is more widespread than many anticipate. It might well need to be with 53,000 bales currently rostered for next weeks sale. The volume of fine and superfine types available has more or less finished for the season with just selected lots available each week. The focus is shifting to the 18.5-to-21.5-micron range because this is what is available. High VM types for carbonising are also selling well with exporters and traders able to sell into the selection.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 37                     13527                       12490                7.7%

South                     M 37                    23346                       21385                8.4%

West                       F 37                      9607                         8280               13.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 38                      T – W                         13356

South                     M 38                  T – W – T                      30923

West                       F 38                      T – W                          9078

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

There was little movement in the market this week. Prices were a little exposed to the movement in currency but there was enough demand to help sustain the market in AUD at around similar levels to last week. There was good interest again for best superfine fleece and in particular those 16.5 micron and finer.

AWEX Eastern Indicator compared with 26/02/2021

Eastern Indicator

Close: 1310

Change in % +0.3

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

Authentico Index Values

15 Micron

Close: 3229

Change in %:  +1.73

16 Micron

Close: 2606

Change in %: +1.64

17 Micron

Close: 2256

Change in %: -2.51

18 Micron

Close: 1952

Change in %: -1.06

19 Micron

Close: 1729

Change in %: +0.12

Authentico Indicator

Close: 2279

Change in %: -0.44

Forecast

We have just under 50,000 bales on offer again next week. According to AWEX reports, we’ve seen an increase of 10% in first hand offered bales so far this season (since July) compared to the previous year. Considering the general circumstances and the reduction in nation production over the same period, the market has performed exceptionally well over this period.

The auction will be held on Wednesday and Thursday next week due to a public holiday on Monday.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 36                     12350                      11220                9.1%

South                     M 36                     24396                     22386               8.2%

West                       F 36                       9798                        8593               12.3%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 37                      W- T                          13502

South                     M 37                     W – T                         26533

West                       F 37                      W – T                          9848

 

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