AUSTRALIAN WEEKLY MARKET REPORT

Comment

The wool market is waiting for some direction with little confidence amongst the traders while we work our way through this difficult period. It’s often that September is a month of instability and the fine wool, coming from historical highs, is feeling the greatest impact. There does seem to be some value around and we are taking enquiry for the better types. They now look good value in comparison to the general market. The offering at the moment is particularly nice, especially in comparison to the variable selection that we’ve seen in recent seasons of drought and flood. So those willing to buy are getting good value for their money. The quality will certainly be better than expected.

AWEX Eastern Indicator compared with 16/09/2022

Eastern Indicator

Close: 1279

Change in % -2.07

Authentico Index Values

15 Micron

Close: 3480

Change in %: -10.2

16 Micron

Close: 3076

Change in %: -3.8

17 Micron

Close: 2602

Change in %: -3.09

18 Micron

Close: 2098

Change in %: -1.96

19 Micron

Close: 1767

Change in %:  +0.11

Authentico Indicator

Close: 2550

Change in %: -4.27

Forecast

We would have expected a slightly higher passed in rate this week. There was some grower resistance as we would expect, but more seem willing to sell. We presume on advice from their selling broker. We’re also very conscious of the season and think that the better light fault types will be in strong demand again once we get to Christmas and into 2023. The offering will almost certainly change dramatically from what we have available now.

Only 32,000 bales are on offer nationally next week, low numbers for this time of the year. Growers are more than likely waiting for prices to stabilise. 

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 12 11559 10276 11.1%
SouthM 12 1738414866 14.5%
WestF 12 6538 5584 14.6%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 13 W – T8903
SouthM 13 W – T16166
WestF 13 W – T 6925

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

A relatively quiet week in the wool market this week, with approx. 33,000 bales sold with approx. 5,000 bales passed in or withdrawn. This signals a new era of growers having the ability to shape the market trend by withholding some of their wool for marketing in future months. With the agricultural boom we are experiencing, growers are not pressured into selling all their wool at one time. Whilst the fine market has had a few negative weeks, we saw these move into a holding pattern this week. Best style and strength are still in demand and not just NM and CM certified wool. Chinese interests are keenest on 19.5 micron and broader, they did not miss the opportunity to capitalize on value operating quite aggressively on 17.5 and 18.5 micron also. Higher VM wool looks good value currently, especially bathurst burr which combs out very easily providing topmakers with some buying opportunities. Europe, Japan, and China are all experiencing a slow in demand however this is quite normal for this time of the year.

AWEX Eastern Indicator compared with 09/09/2022

Eastern Indicator

Close: 1306

Change in % -1.00

Authentico Index Values

15 Micron

Close: 3879

Change in %: +0.00

16 Micron

Close: 3200

Change in %: -2.00

17 Micron

Close: 2685

Change in %: -3.0

18 Micron

Close: 2140

Change in %: +0.50

19 Micron

Close: 1765

Change in %:  -1.0

Authentico Indicator

Close: 2664

Change in %: -1.0

Forecast

A general slowing in demand which is quite common for this time of the year. To counter this smaller volumes on offer in the coming weeks as we are still struggling with weather and shearer issues and delays. Combing capacity around the globe is extensively booked until the first quarter of 2023. We are seeing some positive trends in shipping and containerization issues especially cost related to China. Currency is favorable and in USD terms wool looks cheap when compared to other natural fibres. We hope this will encourage traders and processors to keep buying in the coming weeks.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 11 10847 9835 9.3%
SouthM 11 1758815437 12.2%
WestF 11 6978 6148 11.9%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 12 T – W11285
SouthM 12 T – W20859
WestF 12 T – W 6881

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Buyer interest was again around 19.5 and 21.0 micron with the Chinese market focusing in this area. Currency movement including Chinese Renminbi, cautious demand, aggressive selling prices and a relative stable market for 19.0 micro and broader have all made for a difficult trading period in recent weeks. History will have a few a little nervous as well. We do often see an improvement in market sentiment during October. But these are not ‘normal times’. We did note some falls in the fine wool market. Interestingly this was more on the European types as price premiums for the best lots has reverted to more sustainable levels. The average Chinese specification fine wool types were much less affected because they had already seen some correction in recent months. The supply of the best fine wool types is better during this period of the season and demand, at least at the higher price level, is limited to European and mainly Italian interests and topmakers. While not all focused on NM and CM, they are certainly favouring these clips.

AWEX Eastern Indicator compared with 02/09/2022

Eastern Indicator

Close: 1319

Change in % -0.82

Authentico Index Values

15 Micron

Close: 3875

Change in %: +0.20

16 Micron

Close: 3267

Change in %: -2.59

17 Micron

Close: 2755

Change in %: -5.0

18 Micron

Close: 2132

Change in %: -5.1

19 Micron

Close: 1785

Change in %:  -1.1

Authentico Indicator

Close: 2686

Change in %: -3.4

Forecast

Volume available for sale is already easing. We did see some larger sales either side of the mid-year recess. Growers, we think, were looking to take advantage of a stable market in uncertain global times. We continue to have growers more willing to hold wool when the market is not in their favour. This will continue to help market stability in the long run.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 10 1187710607 10.7%
SouthM 10 1783516223 9.0%
WestF 10 5213 4607 11.6%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 11 T – W10958
SouthM 11 T – W21482
WestF 11 T – W 7279

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Very little change in the market this week although some things never change and that is the current demand for high quality superfine wool. With a designated superfine sale in Sydney this week, we saw the early signs of strong demand from Europe which will continue through to December 2022. It is coming down to supply and demand, with better than expected seasonal conditions, prolonged wet conditions, delays with shearing is having an affect on processing performance factors such as length, strength, mid breaks and couple this with excess colour is reducing the pool of suitable wool for high quality wool tops. Certified wool still remains in keen demand as the search for quality in this area also. Chinese interests expressed caution this week, particularly in the 18.5 micron and finer categories, however 19.5 and broader were keenly contested and showed some improvement in price.

AWEX Eastern Indicator compared with 26/08/2022

Eastern Indicator

Close: 1330

Change in % -0.2

Authentico Index Values

15 Micron

Close: 3867

Change in %: +0.50

16 Micron

Close: 3354

Change in %: -2.40

17 Micron

Close: 2901

Change in %: +1.70

18 Micron

Close: 2247

Change in %: +0.6

19 Micron

Close: 1805

Change in %:  +0.40

Authentico Indicator

Close: 2782

Change in %: +0.18

Forecast

A return to slightly larger volumes in the coming weeks will hopefully encourage more activity as exporters like to sell into volume without fear of getting caught short. Indent buyers also like larger volume offerings in the hope to spot good value when purchasing. Shipping and containerisation issues are slowly working there way forward to enable a speedier despatch of wool to its destinations.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 09 10558 9120 13.6%
SouthM 09 1692514863 12.2%
WestF 09 8051 6471 19.6%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 10 T – W12127
SouthM 10 T – W21277
WestF 10 T – W 6158

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Not much change in the market this week with European interests continue to support high quality superfine wool with Chinese indent and traders supporting a wide range. More emphasis was on the broader microns for China this week. The prolonged wet weather is affecting style and strength with higher levels of colour and cotted wool evident. A timely reminder to classers to pay attention to detail around the classing table for best outcomes for growers.

AWEX Eastern Indicator compared with 26/08/2022

Eastern Indicator

Close: 1342

Change in % unchanged

Authentico Index Values

15 Micron

Close: 3849

Change in %: +0.40

16 Micron

Close: 3438

Change in %: +2.20

17 Micron

Close: 2852

Change in %: -0.03

18 Micron

Close: 2233

Change in %: +0.86

19 Micron

Close: 1798

Change in %:  +1.07

Authentico Indicator

Close: 2777

Change in %: +0.76

Forecast

A small sale next week off the back of wool week held in Melbourne this week, will see some pressure on the better fine wool as the Chinese range should be relatively unchanged.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 08 1467012831 12.5%
SouthM 08 2276119881 12.7%
Westno sale

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 09 T – W11504
SouthM 09 T – W18078
WestF 09 T – W 9610

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

There wasn’t much change in the market this week. Chinese interest remains, but during this period of the season it’s usually more subdued. Buyers were very price conscious earlier in the sale. We expect prices to move within this narrow range, subject to currency movement, for the short term. Traders are indicating that demand is slow, however Chinese topmakers and some indent buying seemed to take up the shortfall. The usual Italian weavers were active on the best clips, with some focus on the mulesing status.

AWEX Eastern Indicator compared with 12/08/2022

Eastern Indicator

Close: 1342

Change in % unchanged

Authentico Index Values

15 Micron

Close: 3863

Change in %: +0.16

16 Micron

Close: 3363

Change in %: +0.66

17 Micron

Close: 2851

Change in %: -0.90

18 Micron

Close: 2214

Change in %: +0.5

19 Micron

Close: 1779

Change in %:  +3.97

Authentico Indicator

Close: 2756

Change in %: +0.25

Forecast

Sales return to a Tuesday and Wednesday format only for next week. The various industry groups will hold their respective annual meetings in Melbourne next Thursday. There is no sale in Fremantle next week. This has reduced the national offering to 40,000 bales.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 07 1562814317 8.4%
SouthM 07 2117319040 10.1%
WestF 07 5114 4418 13.6%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 08 T – W15472
SouthM 08 T – W24644
WestF 08 no sale

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Sales resumed this week following the annual three week recess. With many European business winding up for their summer holidays, and Chinese demand a little uncertain, all prices opened cheaper on Tuesday. Following that initial reaction, there was some daily market movement between centers as prices began to align for similar qualities. The final sale in Melbourne prior to the recess had a good selection of high quality RWS and Authentico certified lines and these, on that day, were very keenly sought after. In a larger selection of best fine wool this week, and less RWS certified, the finer indicators were less extreme. It was the last sale prior to the break that was the anomaly, rather than this week.

A key indicator, the AWEX EMI in USD value, was slightly up this week (+1.3%). This was a very good result and shows a continuity of support from the Chinese market.

AWEX Eastern Indicator compared with 15/07/2022

Eastern Indicator

Close: 1342

Change in % -3.31

Authentico Index Values

15 Micron

Close: 3857

Change in %: -8.7

16 Micron

Close: 3341

Change in %: -8.3

17 Micron

Close: 2877

Change in %: -7.8

18 Micron

Close: 2326

Change in %: -5.2

19 Micron

Close: 1711

Change in %:  -7.0

Authentico Indicator

Close: 2749

Change in %: -7.4

Forecast

Most downward market trends tend to be an over reaction. Growers again showed a resistance to sell in a falling market and despite the expectations of a large volume sale, withdrawn rates and passed in levels restricted the final sold volume to 43,000 bales. 55,000 bales were eventually offered despite just over 60,000 bales originally listed for sale. As a result, prices did certainly stabilise in Melbourne on Thursday. We are expecting another large volume offering next week before quantities drop off again. If the market doesn’t hold around these levels, expect growers to show resistance once again. They are generally experiencing good seasonal and market conditions across multiple farm commodities at the moment. Wool is the one commodity that can be held in store for better times if necessary.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 06 1959315659 20.1%
SouthM 06 2669221444 19.7%
WestF 06 9078 6007 33.8%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 07 T – W16215
SouthM 07T – W – T27078
WestF 07 T – W 6045

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

With a week that offered some doubt that we would finish in positive territory with 61,000 bales being offered nationally, the market really showed resilience across a wide range of microns. Best fine certified wool led the way with keen competition from all sectors, finishing the week 6-7% in an upward trend off the back of increased demand in weaving and spinning types in Europe and China. Good demand for the first half of 2023 has had a positive effect on the market. Chinese interests also active this week on 18.5 micron and finer, with a little activity in the broader merino categories. Demand for certified wool is increasing as brand partners all seek to find a niche in the transparent, sustainable and ethical world of textiles that is emerging.

AWEX Eastern Indicator compared with 01/07/2022

Eastern Indicator

Close: 1388

Change in % -1.40

Authentico Index Values

15 Micron

Close: 4226

Change in %: +6.30

16 Micron

Close: 3647

Change in %: +2.30

17 Micron

Close: 3122

Change in %: +6.0

18 Micron

Close: 2526

Change in %: +7.80

19 Micron

Close: 1841

Change in %:  -1.80

Authentico Indicator

Close: 3031

Change in %: +5.10

Forecast

We now head into a three week recess from wool sales. Finishing on a positive note should help trading opportunities over the next weeks to hopefully resume in a similar fashion. For the short term shipping and containerization issues are slightly improved, however once we get back into the main part of the season the pressure will be back on and difficult to manage. We hope these signs of good demand and increased activity in larger volume is encouraging for the first half of the new season.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 02 1920716480 14.2%
SouthM 02 2683523899 10.1%
WestF 02 9168 7310 20.3%

Auction offering – next week

MarketSale
Sale days
Volume
NorthRECESS
SouthRECESS
WestRECESS

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

While the general market was cheaper across the board, the standout performance continues to be the few high quality fine wool clips. Not only the NM clips, but all best style 16.0 to 18.0 micron with good specification suitable for the Italian market. They were all dearer for the week. Fine wool is not in demand in China at the moment, with most recent enquiry in China concentrated on 19.5 to 21.0 micron, likely because they are cheaper and more in line with long term average prices. However, in small supply, the better fine micron clips were very keenly sought after. We won’t see volume of these types until mid-August at the earliest but indications are that the quality will be good this season.

AWEX Eastern Indicator compared with 01/07/2022

Eastern Indicator

Close: 1407

Change in % -1.61

Authentico Index Values

15 Micron

Close: 3958

Change in %: -2.0

16 Micron

Close: 3563

Change in %: +2.68

17 Micron

Close: 2934

Change in %: +0.82

18 Micron

Close: 2329

Change in %: -0.51

19 Micron

Close: 1875

Change in %:  -1.83

Authentico Indicator

Close: 2875

Change in %: +0.38

Forecast

We still see the odd clip presented for sale that has not been prepared or classed to the industry code of practice. It’s impossible to understand how any wool grower could think that by reducing their quality, will net them a better return in the long run. All it does is drive down quality to the lowest common denominator and prices follow.

We have 61,000 bales rostered for sale next week, the last before the annual three-week recess. Growers must be concerned about the short to medium term impact on their business and the global economy as interest rates rise and discussions about recessions circulate. This volume has increased despite an overall easing in prices and this is in contrast to how growers have acted in the past two years where most have been reluctant to sell into a falling market. No doubt this volume has put some degree of caution in the market. It may well be an overreaction because this kind of volume is very unusual for a weekly sale so there could be some buying opportunities next week.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 01 1680614774 12.1%
SouthM 01 2051018238 11.1%
WestF 01 11544 8595 25.5%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 02 T-W20411
SouthM 02 T-W-T29204
WestF 02 T-W 11439

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The gap between certified wool and non certified wool continues to widen in the closing week of sales. The large volume offered did test the market, however it is segmented with best style and strength less affected by this weeks activity. Greasy wool traders took the opportunity to take some cover against open positions, whilst the indent buyers were a little more cautious still struggling with an overwhelmingly poor selection to close the season. M01 starts next week with healthy figures which may encourage better activity as exporters are able to sell into a larger selection more confidently.

AWEX Eastern Indicator compared with 24/06/2022

Eastern Indicator

Close: 1430

Change in % -2.99

Authentico Index Values

15 Micron

Close: 4039

Change in %: +2.0

16 Micron

Close: 3470

Change in %: -0.9

17 Micron

Close: 2910

Change in %: -3.35

18 Micron

Close: 2341

Change in %: -3.58

19 Micron

Close: 1910

Change in %:  -3.87

Authentico Indicator

Close: 2864

Change in %: -2.15

Forecast

Week 01 next week has 52,000 bales on offer which may attract some activity with exporters able to sell into the bigger volume. Chinese interests have express a desire to keep buying despite this weeks drop. The A$ has fallen below .6900 which may help keep the market in positive territory. We also expect some nice wool to emerge from hold as growers choose to sell in the new financial year.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 52 1160810108 12.9%
SouthM 52 2124616805 20.9%
WestF 52 10451 7600 27.3%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 01 T-W17559
SouthM 01 T-W22147
WestF 01 T-W 12476

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