AUSTRALIAN WEEKLY MARKET REPORT

Comment

There was little change in the market again this week. The market seems almost in a holding pattern awaiting the next significant move. Best fine wool prices are a little less extreme but in general the market closed around similar levels to those of last week. Next week’s Sydney sale is a designated superfine sale and we tend to get more of the finer hogget’s coming onto market from now through to November.

The crossbred market remains in a poor state with the 28.0 and 30.0 micron AWEX MPG’s at the lowest point now for the past five years.

AWEX Eastern Indicator compared with 08/10/2021

Eastern Indicator

Close: 1323

Change in % -1.19

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

Authentico Index Values

15 Micron

Close: 3756

Change in %:  -4.13

16 Micron

Close: 3088

Change in %: -1.08

17 Micron

Close: 2743

Change in %: -1.29

18 Micron

Close: 2299

Change in %: -1.45

19 Micron

Close: 1852

Change in %: -0.16

Authentico Indicator

Close: 2691

Change in %: -1.61

Forecast

No doubt many are watching the AWEX EMI in both AUD and USD. Since mid-August there seems to be a low point that gains more trading support. It’s almost a ‘buy in’ level. Since then, the EMI has moved upwards from around the current level (1320/1330) but not below. In USD the trade range has been narrower and sitting constantly around 970 where it is sitting today. Customers are following this and seem reluctant to buy when in an upward trend, but more confident to buy when around today’s level. The usual late October spike could well yet happen but external factors this season do appear a little different. Perhaps the risk that it will occur is keeping client interest around these levels in fear of perhaps missing out.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 15                   10871                  9468                12.9%

South                     M 15                   22108                19358               12.4%

West                       F 15                     7072                   5672                19.8%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 16                      T / W                    10694

South                      M 16                     T / W                   21022

West                        F 16                      T / W                    6309

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

There was little change in the market this week with the exception of good types 18.0 micron and finer. They were generally dearer for the week and the best competition was clearly on the NM/CM clips.  Most would see this very positively with demand from China ‘cautious’ at best. Almost all other types and descriptions tracked sideways this week in terms of price. Italian interests were again keen on better fine wool. During this period, supply is at it’s best in terms of quality so they’re making the most of this opportunity to secure these very suitable types.

AWEX Eastern Indicator compared with 01/10/2021

Eastern Indicator

Close: 1339

Change in % +0.15

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

Authentico Index Values

15 Micron

Close: 3918

Change in %:  +5.32

16 Micron

Close: 3122

Change in %: -2.38

17 Micron

Close: 2779

Change in %: +0.72

18 Micron

Close: 2333

Change in %: +2.14

19 Micron

Close: 1855

Change in %: +3.11

Authentico Indicator

Close: 2735

Change in %: +3.11

Forecast

Most expect the market to firm up later this month but it could be just a little different this year considering the market has been performing more consistently all year than what we have grown to expect. The Chinese seem more circumspect with regards to their buying as they come to terms with reduced production capacity following a government intervention. Demand from Europe is better and for a wider range of types but the market will still rely on Chinese demand if we are to see the usual October spike. There could also be a few more growers holding on for this too. Confidence needs to be a little better from China than what it is at the moment and we understand payments could be a little slow to exporters as well. This could impact on cash for purchasing in the next week or so.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 14                   12013                 10665                11.2%

South                     M 14                   18514                 16441                11.2%

West                       F 14                    4816                    4212                 12.5%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 15                      T / W                    11062

South                      M 15                     T / W                   24507

West                        F 15                      T / W                     7186

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

An incredibly difficult week for exporters this week with negative activity at auctions on Wednesday as limited trading and a general nervousness from the Chinese sector due to covid and power related issues. Add to this cash flow constraints coupled with slow shipping schedules and rising container costs. The market dropped a solid 30 cents on the Eastern Indicator and grower resistance with approx. 25% of the offering passed in and withdrawn was enough to generate active trade for Thursday auctions. Most sectors were active and helping most micron indicators into positive territory by auction close. RWS & NM wool was keenly sought again this week with good incentives for best style and strength on offer. Interesting to note that we are experiencing some resistance from international customers as RWS has rallied to seemingly unsustainable levels.

AWEX Eastern Indicator compared with 24/09/2021

Eastern Indicator

Close: 1337

Change in % -2.30

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

Authentico Index Values

15 Micron

Close: 3720

Change in %:  -3.20

16 Micron

Close: 3198

Change in %: +1.30

17 Micron

Close: 2759

Change in %: +0.40

18 Micron

Close: 2284

Change in %: +0.20

19 Micron

Close: 1799

Change in %: -2.40

Authentico Indicator

Close: 2704

Change in %: -0.11

Forecast

The outlook for the market in the coming weeks is quite positive. With auction volumes around the 35-40,000 bale mark and growers prepared to hold if prices are not reflective of good value will certainly see the market stay in positive territory. Increased activity from Europe particularly in the high quality fine end of the market is encouraging.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 13                   11604                   9271                20.1%

South                     M 13                  20389                 16259               20.3%

West                       F 13                    7536                     5040                33.1%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 14                      W / T                    12119

South                      M 14                     W / T                   23249

West                        F 14                      W / T                     6751

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The lower Australian dollar and an improved fine wool offering were the key issues that influenced this week’s market. Interest from China is steady but cautious and this is the main underlying factor in the relatively stable market overall. However Italian interests competed strongly for quality superfine types this week. The clips with NM/CM status clearly preferred in general, obviously subject to quality first. Selected clips around 16.5/17.5 micron were up to 4% dearer. The ultrafine market is a little irregular around 14.5/15.0 micron due to the extreme prices that we’ve seen in recent weeks and the availability of these types is a little better at this time of the season.

AWEX Eastern Indicator compared with 17/09/2021

Eastern Indicator

Close: 1368

Change in % +1.18

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

Authentico Index Values

15 Micron

Close: 3843

Change in %:  -9.15

16 Micron

Close: 3158

Change in %: -0.78

17 Micron

Close: 2748

Change in %: +3.31

18 Micron

Close: 2280

Change in %: +2.47

19 Micron

Close: 1844

Change in %: +2.05

Authentico Indicator

Close: 2708

Change in %: +0.07

Forecast

Chinese activity finished the week strongly but again demand seems limited to the few large companies. It should be enough, along with continued interest from Europe to maintain an upward trend next week.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 12                   11112                   9977                10.2%

South                     M 12                  18304                 16800               8.2%

West                       F 12                    4611                     4195                9.0%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 13                      W / T                    11461

South                      M 13                     W / T                   22552

West                        F 13                      W / T                     7549

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

In a week where we thought the market was going to struggle it finished the week in positive territory with a couple of interesting highlights. FNF wool throughout the micron categories continues to bring small incentives in prices when compared to VM2% and above which are generally discounted. RWS NM/CM wool is still in keen demand with incentives increasing to around 10/15% above the spot market which is becoming the expectation of many growers. China is still evaluating the market and remains nervous about local processing and increased sea freight costs and export textile charges into Europe and USA. Europe is quietly optimistic for an improvement in weaving types and currently experiencing good demand for processed and knitting types which should see the market with a  positive attitude to the final quarter of 2021. Fine market indicators continue to increase despite the 15 micron which faltered this week, however demand remains strong.

AWEX Eastern Indicator compared with 03/09/2021

Eastern Indicator

Close: 1352

Change in % -0.70

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

Authentico Index Values

15 Micron

Close: 4230

Change in %:  -5.7

16 Micron

Close: 3183

Change in %: 0.00

17 Micron

Close: 2660

Change in %: +2.97

18 Micron

Close: 2225

Change in %: +1.20

19 Micron

Close: 1807

Change in %: +0.80

Authentico Indicator

Close: 2706

Change in %: +0.30

Forecast

The market seems to be on the edge of more positive times with a relatively empty pipeline for greasy wool. We are seeing more enquiry across a wide range of types and destinations as demand for responsibly sourced wool is on the increase and volumes remain relatively small when compared to the total national supply.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 11                   9989                  8644                13.5%

South                     M 11                  17417                  15344               12.0%

West                       F 11                    5419                   4661                  14.0%

Auction offering – next week

Market          Sale          Sale days

North                      S 12                      T / W

South                      M 12                     T / W

West                        F 12                      T / W

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The superfine wool market is certainly having it’s time in the sun. The 15.0 micron and finer range picked up again this week with prices as much as 20% dearer for selected quality types. In the end our Authentico index for 15.0 micron was 13.7% dearer and still trending upwards. To average 15.0 micron is the key with those wools around 14.5 micron attracting significant buyer support from a variety of companies. In the auction room two buyers would challenge each other and for one to drop out, another would enter. Something we haven’t seen for years. The market hasn’t seen these types for a couple of seasons with the prolonged drought experienced 2 years ago followed now by the much better growing season that is seeing many clips testing up to 1.0 micron broader on average.

AWEX Eastern Indicator compared with 03/09/2021

Eastern Indicator

Close: 1361

Change in % +2.17

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

Authentico Index Values

15 Micron

Close: 4488

Change in %:  +13.7

16 Micron

Close: 3182

Change in %: +3.14

17 Micron

Close: 2581

Change in %: -0.88

18 Micron

Close: 2198

Change in %: +1.24

19 Micron

Close: 1792

Change in %: +1.01

Authentico Indicator

Close: 2698

Change in %: +2.93

Forecast

Chinese activity was evident late last week but demand slowed just prior to this week’s sale. It was enough to kick start the sale on a positive note. Perhaps a sign of a little more maturity in the market that is leading towards more stability. Just as we’ve seen for the past 6 months or so. It is generally a slow period at this time of the year so to have a market around about from week to week is a good result for this time of the season. Greasy wool stocks still appear to be low so we remain positive in the medium term.

We noticed one exporter has launched a new buying code with ‘non mulesed’ in the company name. It’s certainly at least an indication of the increasing trend in global demand for wool from non mulesed clips.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 10                   9809                  8599                12.3%

South                     M 10                  17448                 16023               8.2%

West                       F 10                    4441                   4185                  5.8%

Auction offering – next week

Market          Sale          Sale days

North                      S 11                      T / W

South                      M 11                     T / W

West                        F 11                      T / W

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

A more subdued week of activity this week with the A$ slightly increased, slow cash reserves and continued shipping and containerization problems all affecting trading and indent buying conditions. Again a highlight of the week was good incentives paid for RWS certified wool with increased competition from China and Europe. The emphasis weekly now is wool that is NM/CM of high quality is keenly sought by all sectors. Heavy discounts applied to inferior style and heavy burr remain consistent in the early part of the season. Reports of increased activity on weaving types out of Europe is encouraging with consistent activity on processed and knitting types. China in a slight hiatus as they deal with renewed COVID restrictions and increased container costs on exported textiles.

AWEX Eastern Indicator compared with 20/08/2021

Eastern Indicator

Close: 1332

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: 3944

Change in %:  -0.55

16 Micron

Close: 3085

Change in %: -0.13

17 Micron

Close: 2604

Change in %: -1.28

18 Micron

Close: 2171

Change in %: -2.47

19 Micron

Close: 1774

Change in %: -0.44

Authentico Indicator

Close: 2621

Change in %: -1.16

Forecast

Seasonal conditions are the best we have seen for many years producing some of the nicest wool on offer will hopefully encourage exporters and processors in the coming weeks and months as we head into the busiest buying and selling quarter of the year. Strong demand for NM/CM and RWS certified will surely drive the market as sustainability, traceability and environmental standards play there part in the textile industry quest to roll back climate change.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 09                  10928                  8911                18.5%

South                     M 09                  15495                 12893                16.8%

West                       F 09                    7761                    5402                 30.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 10                      T / W                         11050

South                      M 10                     T / W                         20673

West                        F 10                      T / W                           5400

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The highlight this week was some best quality superfine bales sold with RWS certification. They appeared to be purchased ‘at best’. Other best style and performing NM/CM lines 16.0 micron and finer were also keenly sought after. The offering is again a little broader than normal years with a continuation of the exceptional growing season. Perhaps some are concerned with supply of best non mulesed types under 16.0 micron and this is building some optimism in this sector. The short types 17.5 micron and finer including prem fleece and good skirtings were also performing better than most types this week.

AWEX Eastern Indicator compared with 20/08/2021

Eastern Indicator

Close: 1350

Change in % +1.12

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

Authentico Index Values

15 Micron

Close: 3966

Change in %:  +4.58

16 Micron

Close: 3089

Change in %: +2.93

17 Micron

Close: 2638

Change in %: +0.04

18 Micron

Close: 2226

Change in %: -0.54

19 Micron

Close: 1782

Change in %: -0.94

Authentico Indicator

Close: 2652

Change in %: +1.14

Forecast

It was a positive sign to have a firming market trend this week. Prices for 19.0 micron and broader did seem to ease a little late on Wednesday so it will be interesting to see if this has any impact on the general market next week. Major Chinese Topmakers could well again be the key to the market strength and if other Chinese traders are able to sell on the back of this.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 08                  12250                 10491                14.4%

South                     M 08                  15993                 13609                14.9%

West                       F 08                   no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 09                      T / W                         11575

South                      M 09                     T / W                         19493

West                        F 09                      T / W                           9486

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market numbers certainly weren’t great reading on Tuesday but high passed in and withdrawn rates reduced the volume sold to the trade and limited any damage to a minimum. The silver lining was the competition from Italian interests on better fine wool. As we’ve often stated, the mulesing status should be considered like an insurance policy. When the Chinese demand is limited, the deeper supply chain interest for wool from farms who no longer mules is enough to help those clips through these difficult periods. It was the same when the Covid-19 pandemic first hit in 2020. It’s not always about the premium from day to day but also about consistent demand when it’s needed most, like now. The Authentico Indicators and Index Values Authentico Index Values and Authentico Indicator by The Schneider Group (gschneider.com) were less impacted this week with only minimal change.

AWEX Eastern Indicator compared with 13/08/2021

Eastern Indicator

Close: 1335

Change in % -2.7

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

Authentico Index Values

15 Micron

Close: 3792

Change in %:  +1.74

16 Micron

Close: 3001

Change in %: -1.09

17 Micron

Close: 2637

Change in %: -0.68

18 Micron

Close: 2238

Change in %: +0.31

19 Micron

Close: 1799

Change in %: -1.1

Authentico Indicator

Close: 2622

Change in %: -0.19

Forecast

Large volumes were again withdrawn from sale prior to auction or passed in when failing to meet the grower reserve. This is definitely helping the market. The general level of competition on Wednesday in Sydney and Melbourne was more encouraging. There were less holes in the market on Wednesday and the inferior types which often failed to get much interest on Tuesday, were getting more buyer support at this level.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 07                  11386                  7982                29.9%

South                     M 07                  16764                13354                20.3%

West                       F 07                   4088                   1749                57.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                      T / W                         13537

South                      M 08                     T / W                         18806

West                        F 08                       no sale

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Auction sales resumed this week after the three-week recess. Global demand was varied in recent weeks. There was no doubt some very encouraging demand from Europe in July but interest from China was more subdued in recent weeks. After the initial correction on Tuesday, vegetable matter quickly became the main focus. The exceptional season in the eastern states has resulted in fleece lines consistently testing in excess of 1% VM. Most standard Chinese types require 1% average so anything greater than 1.5% was irregular but those under 1%, regardless of quality, were more keenly sought after. Italian weaver interests were competing on the better quality and specification fine fleece types.

AWEX Eastern Indicator compared with 16/07/2021

Eastern Indicator

Close: 1372

Change in % -3.92

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

Authentico Index Values

15 Micron

Close: 3727

Change in %:  -4.38

16 Micron

Close: 3034

Change in %: -2.97

17 Micron

Close: 2655

Change in %: -0.60

18 Micron

Close: 2231

Change in %: -2.45

19 Micron

Close: 1819

Change in %: -3.45

Authentico Indicator

Close: 2627

Change in %: -2.38

Forecast

While the market was cheaper over the week, it was obvious when trying to buy a type to specification, particularly relating to VM, then the competition was much more competitive. Growers have again shown their reluctance to sell in a cheaper market with a high passed in rate reported by AWEX. This is an example of a more positive and mature market outlook for wool. Unlike the ‘old days’ when growers were relying only on wool income, they now have other income streams and have shown that they are prepared to hold wool for better market conditions. As a result, 40% of this week’s original quantity was either passed in or withdrawn prior to sale and next week’s national volume has already been reduced by 11% since the most recent forecast of 9th August.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 06                  17047                 11191                 34.4%

South                     M 06                 23685                16558                30.1%

West                       F 06                   8449                   5090                39.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 07                      T / W                         13028

South                      M 07                     T / W                         24137

West                        F 07                       T                                  4119

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