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.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

There were some quite distinct patterns in the way prices moved this week. The best fine wool of 17.5 micron and finer remain very keenly sought after, albeit in small supply, The average fine wool, most usually destined for the Chinese market, were all tending cheaper over the week as demand slows in China for the finer types. The 18.0 to 19.0 micron range didn’t change much. At the other end of the merino selection, the 19.5 to 21.5 micron prices all increased. Of particular interest is the light fault fleece. Those with less than 1.0% attracted much greater buyer interest than lines with 1.5% VM. This is a simple consequence of supply and demand. The average VM on the market is higher as a result of the season.

AWEX Eastern Indicator compared with 17/06/2022

Eastern Indicator

Close: 1474

Change in % +0.48

Authentico Index Values

15 Micron

Close: 3958

Change in %: -3.65

16 Micron

Close: 3503

Change in %: -0.51

17 Micron

Close: 3011

Change in %: -1.38

18 Micron

Close: 2428

Change in %: -0.16

19 Micron

Close: 1987

Change in %:  +3.06

Authentico Indicator

Close: 2927

Change in %: -0.88

Forecast

The market was just a little less extreme this week, with the obvious exception being the broader merino types. It was only a small sale consisting of less than 30,000 bales nationally and perhaps some are waiting for the larger volume sales to be held in July. Often the larger volume sales attract more buyer interest. We expect little change next week, along similar patterns to what we’ve had recently. Some could be looking ahead to week 01.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 51 1167710264 12.1%
SouthM 51 1813016306 10.1%
WestF 51 no sale

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 52 T-W11879
SouthM 52 T-W21644
WestF 52 T-W 11480

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

AUSTRALIAN WEEKLY MARKET REPORT

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

MarketSaleOfferedSoldPassed In
NorthS 50 9254 8578 7.3%
SouthM 50 1725915277 11.5%
WestF 50 8844 7978 10.0%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 51 T-W11461
SouthM 51 T-W19349
WestF 51NO SALE

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

An extremely small nationally offering, the smallest in nine months according to AWEX, has resulted in a dearer market across the board. Local trading companies competed with topmakers and indent buyers with the focus again on good specification, light fault types. There were selected superfine clips that sold to levels up to 3% above last week in the 17.0 to 18.5 micron range. The selection of best fine wool is extremely small at this time of the season and restricted to selected clips only.

AWEX Eastern Indicator compared with 03/06/2022

Eastern Indicator

Close: 1438

Change in % +1.69

Authentico Index Values

15 Micron

Close: 4045

Change in %: -0.44

16 Micron

Close: 3428

Change in %: +1.60

17 Micron

Close: 2927

Change in %: -0.57

18 Micron

Close: 2381

Change in %: +0.08

19 Micron

Close: 1888

Change in %:  +1.12

Authentico Indicator

Close: 2871

Change in %: -0.1

Forecast

We have just the four selling weeks remining before the annual three week recess. Next Monday is a national holiday in Australia so sales will be held on Wednesday and Thursday. We often have a larger sale the first week of July with growers taking advantage of the new financial year to sell wool. Sale 01 is likely to be a large sale again this year. We have been offering less wool in recent weeks compared to the same period last year, and we also note that there is a reasonable percentage of old wool on offer at the moment. Estimates have the percentage of old wool on the market in excess of 10% of the weekly auction volume. Exporters showed a more clear intent this week but in a small national offering.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 49 1266511267 11.0%
SouthM 49 1843216851 8.6%
WestF 49

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 50 W-T 9806
SouthM 50 W-T19121
WestF 50 W-T 9071

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

AUSTRALIAN WEEKLY MARKET REPORT

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

MarketSaleOfferedSoldPassed In
NorthS 48 84537205 14.8%
SouthM 48 2005917669 11.9%
WestF 48 6360 5418 14.8%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 49 T-W12596
SouthM 49 T-W20499
WestF 49 no sale

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Quality is the main factor pre-determining competition. Low vegetable matter is the most common reason for buyer interest along with mulesing status and staple strength. As the season moves towards the winter months, the selection traditionally deteriorates. This factor is more obvious this season than is usually the case. Strong fine wool prices have meant that most of them have been sold earlier in the year and the excellent season has resulted in more vegetable matter in the current clip. Our Authentico index’s, focusing on NM and quality fine fleece wool, remain generally positive while the selection is more limited. Buyer interest in these fewer bales on offer, remains strong.

F

AWEX Eastern Indicator compared with 20/05/2022

Eastern Indicator

Close: 1420

Change in % -0.98

Authentico Index Values

15 Micron

Close: 4027

Change in %: +2.21

16 Micron

Close: 3429

Change in %: +1.99

17 Micron

Close: 2966

Change in %: +2.21

18 Micron

Close: 2355

Change in %: -1.96

19 Micron

Close: 1865

Change in %:  -0.53

Authentico Indicator

Close: 2871

Change in %: +0.91

Forecast

The national offering next week drops below 40,000 bales. The week after will be even smaller with no Fremantle sale. This is likely to keep indent buyers interested and traders cautious.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 47 1290711088 14.1%
SouthM 47 2436021293 12.6%
WestF 47 77926376 18.2%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 48 T-W 8817
SouthM 48 T-W21398
WestF 48 T-W 7076

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

AUSTRALIAN WEEKLY MARKET REPORT

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

MarketSaleOfferedSoldPassed In
NorthS 46 89018204 7.8%
SouthM 46 2581922806 11.7%
WestF 46 70516451 8.5%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 47 T-W13062
SouthM 47 T-W25530
WestF 47 T-W 7800

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Certified wool stands out again this week, achieving healthy incentives when compared to the rest of the market in keen demand from all sectors.

Another outstanding week it was in the wool market. Volatile currency, large offering, which in some cases was very disappointing from a quality point of view, making it difficult for exporters, greasy wool traders and indent buyers to secure volume of types required to satisfy client demands.

Having said this, volatility is healthy in the market pitting buyer against buyer to secure wool at best value. Greasy wool trader’s welcome volatility, where as indent buyers prefer stability and consistency to accumulate volume.

Nothing much has changed with shipping and containerization delays, but surprisingly this has helped support the market as many Chinese processors, warehouses, transporters and wharves are experiencing staff shortages due to covid lockdowns and they don’t have the manpower to support a larger influx of wool at this point in time.

AWEX Eastern Indicator compared with 29/04/2022

Eastern Indicator

Close: 1427

Change in % +1.80

Authentico Index Values

15 Micron

Close: 3940

Change in %: +1.0

16 Micron

Close: 3360

Change in %: +3.0

17 Micron

Close: 2810

Change in %: +2.0

18 Micron

Close: 2357

Change in %: +2.0

19 Micron

Close: 1867

Change in %:  +2.5

Authentico Indicator

Close: 2803

Change in %: +2.0

Forecast

The coming weeks still see a 40,000 plus bales national offering with no end in sight to the current disruptions globally. Currency, selection, interest rates, and inflation will all play a part in shaping the next few months in the commodities and share markets. Be reassured that most of these have all leaned to a positive outcome despite the unfortunate circumstances we have been dealt with in the past two years. Positive attitude with a positive outcome is the only way forward.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 45 91528633 5.7%
SouthM 452309721001 9.1%
WestF 45 90497960 12.0%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 46 T-W 8979
SouthM 46 T-W28319
WestF 46 T-W 8831

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

AUSTRALIAN WEEKLY MARKET REPORT

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

MarketSaleOfferedSoldPassed In
NorthS 44 95629063 5.2%
SouthM 442214020797 6.1%
WestF 44 84517891 6.6%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 45 T-W 9155
SouthM 45 T-W25104
WestF 45 T-W 8520

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The wool market resilience continues despite all the factors that have been mentioned in previous weeks pertaining to shipping, containerization and cash flow problems. Everybody in the industry is working tirelessly to resolve all the issues, but unfortunately it is a slow burn. Lets not let that detract from a positive wool market driven by good demand and a desire to buy the highest quality wool in the world. VM is still playing its part at this time of the year as good incentives are being paid for FNF wool, coupled with a continuous support for RWS, NM/CM certified wool.

Good demand from Europe in the spinning and weaving sectors and slow moving exports out of China are creating a level playing field. Whilst good demand for knitting and processed types is good we are hearing of a few hiccups in the supply chain.

AWEX Eastern Indicator compared with 08/04/2022

Eastern Indicator

Close: 1377

Change in % +0.08

Authentico Index Values

15 Micron

Close: 3905

Change in %: +2.70

16 Micron

Close: 3167

Change in %: -3.70

17 Micron

Close: 2776

Change in %: -0.60

18 Micron

Close: 2305

Change in %: +2.70

19 Micron

Close: 1812

Change in %:  +0.80

Authentico Indicator

Close: 2729

Change in %: -0.00

Forecast

Reduced volumes in the coming weeks will certainly assist the market.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 431355812499 7.8%
SouthM 432513522633 10.0%
WestF 43100608357 16.9%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 44 T-W 9523
SouthM 44 T-W23555
WestF 44 T-W 8215

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