Archive for category: 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

Market	Sale	Offered	Sold	Passed In
North	S 52	11608	10108	12.9%
South	M 52	21246	16805	20.9%
West	F 52	10451	7600	27.3%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 01	T-W	17559
South	M 01	T-W	22147
West	F 01	T-W	12476

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

Comment

The wool market this week has offered some interesting scenarios. Finishing the week in very positive territory driven by good demand in merino combing types, both European and Chinese. A volatile currency assisted this week with global financial developments and how this will influence the AUD against other major currencies will be interesting to see how that will affect prices in the coming weeks. Supply is another factor to consider with no Fremantle sale next week, may have triggered exporters into finishing containers to speed up the shipping process. Fine wool demand has been a major focus this week with less interest for inferior fine wool types destined to China. Good to see market separation between best style certified wool and the inferior style taking style, strength and CVH (processing performance) parameters to a new level.

AWEX Eastern Indicator compared with 10/06/2022

Eastern Indicator

Close: 1467

Change in % +2.0

Authentico Index Values

15 Micron

Close: 4108

Change in %: +1.50

16 Micron

Close: 3521

Change in %: +2.60

17 Micron

Close: 3053

Change in %: +4.10

18 Micron

Close: 2432

Change in %: +2.10

19 Micron

Close: 1928

Change in %:  +2.10

Authentico Indicator

Close: 2953

Change in %: +2.80

Forecast

Where are we heading? A very small National offering next week will definitely impact the market in a positive way with the current demand and opportunistic volatile market and currency. Quality and volume will definitely dictate the term over the next couple of weeks as we close out the current season and look for bigger volume to be offered during week 01 & 02. Will rising interest rates affect the market ? Will the volatile currency affect the market ? The resilience of the wool market in the past twelve months has been extraordinary, lets hope it is sustainable.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 50	9254	8578	7.3%
South	M 50	17259	15277	11.5%
West	F 50	8844	7978	10.0%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 51	T-W	11461
South	M 51	T-W	19349
West	F 51	NO SALE

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

Comment

There was not much change this week. Better types are still in limited supply and attracting keen buyer support. Of particular note was the keener activity on the few better 16.5 to 18.0 micron fleece lines. They were getting the usual support from Italy but also from topmakers who need the better specification for presumably Italian customers. Supply is so limited, that in the short term, we see little room for this trend to change. Not until we see wools coming in from the new season in August, will we gain a clearer picture of supply and demand for fine and superfine wool.

AWEX Eastern Indicator compared with 27/05/2022

Eastern Indicator

Close: 1414

Change in % -0.42

Authentico Index Values

15 Micron

Close: 4063

Change in %: +0.89

16 Micron

Close: 3374

Change in %: -1.60

17 Micron

Close: 2944

Change in %: -0.74

18 Micron

Close: 2379

Change in %: +1.02

19 Micron

Close: 1867

Change in %:  +0.1

Authentico Indicator

Close: 2874

Change in %: +0.1

Forecast

The market appears to be in a little of a ‘holding pattern’. With little market movement, volumes are limited, quality is generally poor and traders of the opinion that demand is ok, but a little slower. Cash flow remains tight and shipping schedules are still a concern, including access to the local dumps for containerization. Not a lot of positive news, but still the market holds firm. Companies with machinery, the topmakers, scourers and carbonisers were the dominant buyers this week. Perhaps seeing an opportunity while the larger trading companies were a little quieter. There is no sale in Fremantle next week so focus will be on Sydney and Melbourne sales only.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 48	8453	7205	14.8%
South	M 48	20059	17669	11.9%
West	F 48	6360	5418	14.8%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 49	T-W	12596
South	M 49	T-W	20499
West	F 49	no sale

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

Comment

Fine wool was again the focus in diminishing volume of these types. Quality wool clips with certified traceability via one of various QA programs were keenly sought after. The market opened cautiously but, as we’ve reported previously, exporters are selling each week. It’s not significant volume, but enough to keep them all interested and active in the market. We then add the indent orders into the market and the result continues to be positive. Competition is not only coming from China but well supported by India and Europe.

F

AWEX Eastern Indicator compared with 13/05/2022

Eastern Indicator

Close: 1434

Change in % +0.5

Authentico Index Values

15 Micron

Close: 3940

Change in %: unchanged (nil selection)

16 Micron

Close: 3362

Change in %: +0.06

17 Micron

Close: 2902

Change in %: +3.27

18 Micron

Close: 2402

Change in %: +1.9

19 Micron

Close: 1875

Change in %:  +0.43

Authentico Indicator

Close: 2845

Change in %: +1.5

Forecast

Interestingly, the Fremantle market is currently dearer than the eastern states for many micron categories. We understand that there are some buyers who would usually buy most volume in the eastern states who are currently looking to buy in Fremantle. Logistic pressures, mainly around dumping, are less extreme in that market, allowing for a quicker export process.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 46	8901	8204	7.8%
South	M 46	25819	22806	11.7%
West	F 46	7051	6451	8.5%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 47	T-W	13062
South	M 47	T-W	25530
West	F 47	T-W	7800

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

Comment

Local traders are reporting that greasy trading conditions are still good. This is despite the uncertainty regarding ocean freight and related finance delays as well the logistic issues in China as a result of the latest covid-19 situation. This positiveness was evident in the market. It was clear that competition was stronger from the start and this followed through to a good increase in overall market prices on Wednesday.

AWEX Eastern Indicator compared with 29/04/2022

Eastern Indicator

Close: 1401

Change in % +1.71

Authentico Index Values

15 Micron

Close: 3905

Change in %: unchanged (nil selection)

16 Micron

Close: 3267

Change in %: +3.15

17 Micron

Close: 2764

Change in %: -0.43

18 Micron

Close: 2312

Change in %: +0.3

19 Micron

Close: 1823

Change in %:  +0.60

Authentico Indicator

Close: 2749

Change in %: +0.73

Forecast

Supply remains limited in volume and limited in terms of the quality available. The offering is broader than what we would expect at this time of the year and, as a result of the season, is containing more vegetable matter than what most commercial contracts can handle. This is creating some disparity in market prices between the lower VM FNF types (Free or Nearly Free) and those fleece lines containing higher VM. It doesn’t mean that the higher VM lines are being neglected, far from it, just that the price gap is greater than usual. Some are seeing more value in using a little more VM than what they would normally use. Currency markets will be closely monitored up until next Tuesday’s sale. We are seeing some fluctuation in the AUD against the USD with speculation on further interest rate rises.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 44	9562	9063	5.2%
South	M 44	22140	20797	6.1%
West	F 44	8451	7891	6.6%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 45	T-W	9155
South	M 45	T-W	25104
West	F 45	T-W	8520

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