Archive for category: 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.

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.

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.

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.

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.