AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market was dearer again, following on from the more positive tone last week. The finest and broadest merino types recorded the biggest gains. This would largely be a reflection of supply. There is still limited supply of fine and broad merinos with most of the selection fitting into the 18.5 / 20.0 – micron range. With the buyer activity yesterday focused strongly on securing quantity, the market premiums for quality were limited. All types and descriptions within a particular micron range sold within a narrow range of price. As a result, the low yields and high mid break lots sold with minimal discount.

AWEX Eastern Indicator compared with 03/07/2020

Eastern Indicator

Close: 1134

Change in % +1.61

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

Authentico Index Values

15 Micron

Close: 2353

Change in %:  -0.72

16 Micron

Close: 2045

Change in %: +4.23

17 Micron

Close: 1792

Change in %: +4.13

18 Micron

Close: 1549

Change in %: +0.65

19 Micron

Close: 1400

Change in %: -1.06

Authentico Indicator

Close: 1787

Change in %: +2.17

Forecast

Sales will resume in the first week of August. The positive market finish should help to promote some trading activity during the recess.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 02                     11273                       10645                 5.6%

South                     M 02                    19682                       18465                 6.2%

West                       F 02                      4307                         3970                  7.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      recess

South                      recess

West                        recess

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The 2020 wool season has opened on a positive tone with more widespread competition on the whole range of types and qualities on offer this week. Chinese interests have continued to dominate but with more support this week from European processors. The competition from China has pushed the lower specification types and resulted in a more positive result overall. The premiums and discounts for quality remains quite small at the moment. Actual price is the most important factor as buyers, traders and processors look for value in what remains a difficult period.

AWEX Eastern Indicator compared with 26/06/2020

Eastern Indicator

Close: 1116

Change in % +0.54

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

Authentico Index Values

15 Micron

Close: 2370

Change in %:  -0.92

16 Micron

Close: 1962

Change in %: -0.66

17 Micron

Close: 1721

Change in %: -1.03

18 Micron

Close: 1539

Change in %: +0.72

19 Micron

Close: 1415

Change in %: +0.07

Authentico Indicator

Close: 1749

Change in %: -0.39

Forecast

It was no doubt a more positive result this week but we wouldn’t yet call it a recovery in the market. We have the one sale remaining prior to the annual 3-week recess and we would expect for this week’s trend to continue next Tuesday and Wednesday. Longer term we remain very positive for wool. The global pandemic has naturally caused considerable damage to retailers and to wider consumer confidence. However, wool is just a very small part of the global textile chain and has outstanding environmental credentials, now a huge focus of the consumer. We are very confident that once demand improves and stock levels are reduced, then price recovery could be swift. Just when this happens is difficult to gauge. Added to the scenario is the fact that local wool production continues to decline.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 01                     9928                         9425                 5.1%

South                     M 01                    13791                        13065                5.3%

West                       F 01                      7102                         6774                  4.6%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 02                        T/W                          11600

South                     M 02                        T/W                          20363

West                        F 02                         W                              4749

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market closed on a positive tone for the 2019 wool selling season. After a general easing of prices across the board on Tuesday, there was more widespread interest at Wednesday’s auction with most descriptions tending slightly dearer. This was a good result under the circumstances. Almost 25,000 bales were sold to the trade to the value of M$31.8.

There were a few nice ultrafine clips that offered some good quality 14.0/14.5 micron bales in Melbourne and these were a clear standout. Competition was very strong and these bales sold to levels similar to those pre Covid-19. Carding types which have seen the greatest competition in recent weeks, were the types that suffered the most this week. Clearly it has been a lack of supply in these types that was the key driver on price.

AWEX Eastern Indicator compared with 19/06/2020

Eastern Indicator

Close: 1110

Change in % -2.54

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

Authentico Index Values

15 Micron

Close: 2392

Change in %:  -0.95

16 Micron

Close: 1975

Change in %: -1.29

17 Micron

Close: 1739

Change in %: +1.05

18 Micron

Close: 1528

Change in %: -1.99

19 Micron

Close: 1414

Change in %: -1.19

Authentico Indicator

Close: 1756

Change in %: -0.73

Forecast

The AWEX EMI has closed 35% lower when compared to this time last year. Our Authentico Indicator based on good performing NM and CM compliant merino clips is 21% lower for the year. The superfine end, particularly 15.0 micron have not been as greatly affected and closed around about similar levels compared to 12 months prior and has had a positive impacted on our Index. The 19.0 micron Authentico Index value on the other hand is 34% lower, more in line with the EMI. Sales continue next week with sale 01 of the new selling season and approximately 31,000 bales available. The auction will be held Wednesday and Thursday to coincide with the new financial year.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 52                     7176                         6448                10.1%

South                     M 52                    14618                       12868               12.0%

West                       F 52                      6235                         5488                12.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 01                        W/T                           9677

South                     M 01                        W/T                          14291

West                        F 01                        W/T                           7104

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Our Authentico index value reached a new low this week closing at 1769. Premiums for NM are not as they have been with Chinese interests dominating and the European market remaining quiet. With only 15,000 bales available nationally, the market struggled to gain any momentum. The main focus is still on the knitting types, carding types and all better performing fine fleece wool. The finer knitting types were even a little dearer on Wednesday. All in all it must be considered a disappointing sale week.

AWEX Eastern Indicator compared with 12/06/2020

Eastern Indicator

Close: 1139

Change in % -2.73

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

Authentico Index Values

15 Micron

Close: 2415

Change in %:  -3.05

16 Micron

Close: 2001

Change in %: -0.99

17 Micron

Close: 1721

Change in %: -2.33

18 Micron

Close: 1559

Change in %: -2.74

19 Micron

Close: 1431

Change in %: -3.64

Authentico Indicator

Close: 1769

Change in %: -2.32

Forecast

The AWEX national weekly report noted that the EMI is at the lowest point since 2015. This is a dramatic change after 3 very positive years for wool. We must focus on wools environmental credentials to rebuild trust with the consumer. For those who have not seen it, we recommend watching the recent speech from Giovanni Schneider, CEO of the Schneider Group. Giovanni spoke at the recent digitally held IWTO conference. His speech can be found in the resources section of our website via this link.  https://www.gschneider.com/resources/

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 51                     6693                         5945                11.2%

South                     M 51                     9107                         8201                 9.9%

West                       F 51                     no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 52                        T/W                            7160

South                     M 52                        T/W                           15900

West                        F 52                        T/W                            7180

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market eased by about 1.5% over the two selling days this week. The average yield of the offering remains a difficult issue for exporters to manage and this is obvious in the competition. The sale result for the better yielding wools were more positive than the reported market averages with prices remaining fairly firm for these higher yielding types across the whole range.

AWEX Eastern Indicator compared with 05/06/2020

Eastern Indicator

Close: 1171

Change in % -1.01

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

Authentico Index Values

15 Micron

Close: 2491

Change in %:  +1.59

16 Micron

Close: 2021

Change in %: -1.41

17 Micron

Close: 1762

Change in %: -1.67

18 Micron

Close: 1603

Change in %: -1.29

19 Micron

Close: 1485

Change in %: -2.56

Authentico Indicator

Close: 1811

Change in %: -1.15

Forecast

There is little premium for the very best lots which now appear best value to us. Chinese interests dominate and there is stronger interest in the shorter combing wools for knitting types, particularly the finer microns. The price gap between best skirtings and average fleece is minimal and crossbreds and carding wools continue to be in more favour. The cardings in particular, are in very small supply which may be more of a factor than demand.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 50                     5383                         4725                12.2%

South                     M 50                    12180                       10806               11.3%

West                       F 50                     4222                          3615                 14.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 51                        T/W                            6681

South                     M 51                        T/W                           10138

West                        F 51                       no sale

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

A stronger AUD against the other major currencies, particularly the USD, along with a small offering were the most significant factors influencing the wool market this week. The AUD was 4.5% stronger over the week against the USD. According to analysts this was largely due to strong iron ore export prices coinciding with a softer USD. Competition, predominantly from Chinese interests, was more active across all types in a very small national offering with Fremantle not selling this week. The focus in recent weeks has been on the superfine end but this shifted to the more traditional Chinese types of 19.0 and 21.0 micron this week.

AWEX Eastern Indicator compared with 29/05/2020

Eastern Indicator

Close: 1183

Change in % +1.11

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

Authentico Index Values

15 Micron

Close: 2452

Change in %:  +1.32

16 Micron

Close: 2050

Change in %: +0.79

17 Micron

Close: 1792

Change in %: +1.30

18 Micron

Close: 1624

Change in %: -0.37

19 Micron

Close: 1524

Change in %: +2.21

Authentico Indicator

Close: 1832

Change in %: +0.77

Forecast

Prices have certainly eased over the past couple of months however the pleasing factor is that there’s still price premiums for micron. Historically when the market has entered a sustained low period, the price spread across the range of microns has tended to be minimal with little premium for micron. The price curve for micron tends to flatten out. Using AWEX MPG’s as a guide, the 17.0-micron price guide is at an 18% premium over the 19.0-micron value. And the 19.0 value is almost 7% over the 21.0 price guide. This is while demand from Europe remains subdued at best. A healthy scenario and encouraging for the production of quality superfine wool.

Monday is a public holiday in Australia so sales will be held on Wednesday and Thursday next week.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 49                     6463                         6050                6.4%

South                     M 49                     8912                         8287                7.0%

West                       F 49                      no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 50                        Th                              5579

South                     M 50                     W/Th                          13726

West                        F 50                         W                             4835

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Small but positive gains were seen across the whole offering this week. The clearance rate was higher as well with more than 17,000 bales sold, or 92% of the bales available. The notable factor was that all types from superfine merino to crossbred and cardings all improved by similar percentages. We are seeing a few ultrafine wools, 15.5 and finer, that are attracting good competition in small supply. The selection is also starting to improve in terms of yield and we expect discounts for low yield to reduce as the selection changes.

AWEX Eastern Indicator compared with 22/05/2020

Eastern Indicator

Close: 1170

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: 2420

Change in %:  +3.42

16 Micron

Close: 2034

Change in %: -0.29

17 Micron

Close: 1769

Change in %: +1.03

18 Micron

Close: 1630

Change in %: +1.81

19 Micron

Close: 1491

Change in %: +1.50

Authentico Indicator

Close: 1818

Change in %: +1.28

Forecast

Some of the early shorn clips from the New England are now coming into store. A couple of factors will limit the supply of quality ultrafine wool that should help prices in the medium term despite the general limited interest from Europe. Tensile strength due to the change in season around February is resulting in more tender wool, with a large number of the lines with high mid break. Secondly the VM content will be completely different when compared with the past few seasons. The drought resulted in little to no VM in the clip up until now. Some early shorn clips have fleece lines approaching 1.5 to 2% vm and skirtings around 7%. A very different scenario for first stage processors like us. We should remind growers that the grass seed (shive) type VM is a very difficult to remove in the combing process and all care should be taken this year to remove the higher VM necks to reduce the impact of VM in the best fleece lines.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 48                     5429                         5216                 3.9%

South                     M 48                     9270                        8430                 9.1%

West                       F 48                      4129                         3697                10.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 49                        T-W                           7184

South                     M 49                        T-W                           9952

West                        F 49                        no sale

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Best fine wool, all cardings and the crossbred types were all keenly sought after this week. The market indicators were generally easier but it’s nice to focus on these few positives this week. Good style and specification fleece wool 16.5 micron and finer remained very firm, in fact the few bales around 15.0/16.0 micron were dearer, particularly if non mulesed. This is reflected in our Authentico index’s which for the fine types, performed better than the average market. Good crossbreds were firm and the cardings were all dearer.

AWEX Eastern Indicator compared with 15/05/2020

Eastern Indicator

Close: 1155

Change in % -2.04

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

Authentico Index Values

15 Micron

Close: 2340

Change in %:  +1.97

16 Micron

Close: 2040

Change in %:  unchanged

17 Micron

Close: 1751

Change in %: -1.64

18 Micron

Close: 1601

Change in %: -1.78

19 Micron

Close: 1469

Change in %: -2.72

Authentico Indicator

Close: 1795

Change in %: -0.72

Forecast

We are often observing the cardings (locks, crutchings, stains etc) and the crossbred fleece wool move in advance of the general market. These types are usually the first to move when the market sentiment is changing. Cardings in particular are at the lowest price point for years and supply is limited. It’s a lower risk to buy the cheaper types that are in small supply. The price comparison with these types to the merino fleece and skirtings will be keenly watched now. There might be some value in the merinos around this level.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 47                     6302                         5533                12.2%

South                     M 47                    10417                         9212                11.6%

West                       F 47                      4382                         3710                15.3%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 48                         T                                5576

South                     M 48                       T-W                           10249

West                        F 48                         W                              4534

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

After several weeks of negative territory for the wool market we saw a glimmer of hope this week returning into positive territory for most merino types. Best style and strength, high yielding wool were very well supported, with low yielding low strength high mid break wool carrying significant discount. Grower resistance still evident with a slightly higher passed and withdrawn rate this week. The continuation of staggered selling mechanisms should help the market recover over an extended period of time, we just need to be patient and all sectors of the industry work together for the best outcomes.

AWEX Eastern Indicator compared with 01/05/2020

Eastern Indicator

Close: 1179

Change in % +0.76

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

Authentico Index Values

15 Micron

Close: 2294

Change in %:  -0.48

16 Micron

Close: 2040

Change in %: -0.49

17 Micron

Close: 1770

Change in %: -1.56

18 Micron

Close: 1630

Change in %: +0.74

19 Micron

Close: 1510

Change in %: +1.48

Authentico Indicator

Close: 1808

Change in %: -0.33

Forecast

The coming weeks see similar sized sales around 20/22,000 bales on offer. The global situation remains relatively unchanged, with currencies showing some volatility. Shifts in the wool market will mostly relate to shipping times and cut-offs as we progress over the next few weeks. Political posturing will also influence commodity prices as we wait and see the impact from China in the coming weeks and months. Globally the world textile industry has lost confidence so we all need to keep a level head to ensure safe passage out of an extreme situation. We need true leadership from our industry heads to take us forward into a new age of wool production, wool processing and retailing for the future.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 46                     6078                         5788                4.8%

South                     M 46                    12593                        11163               11.4%

West                       F 46                      4700                          4364               7.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 47                         W                               6672

South                     M 47                       T-W                           10404

West                        F 47                         T                               4614

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was another disappointing week for the Australian wool market. There were 20,000 bales sold to the trade for a value of just under M$26. The selection remains very poor and more than half of the normal greasy wool supply chain are not able to buy for various economic reasons. It seems that the 25,000 bales we are offering per week of such quality is still too much for the market to handle in these uncertain times. We would think a national volume of between 15,000 and 20,000 bales per week would be a figure more easily absorbed considering the current level of demand. This would provide the market a greater chance of stability.

AWEX Eastern Indicator compared with 01/05/2020

Eastern Indicator

Close: 1170

Change in % -4.49

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

Authentico Index Values

15 Micron

Close: 2305

Change in %:  -3.52

16 Micron

Close: 2050

Change in %: -3.71

17 Micron

Close: 1798

Change in %: -2.18

18 Micron

Close: 1618

Change in %: -3.29

19 Micron

Close: 1488

Change in %: -4.86

Authentico Indicator

Close: 1814

Change in %: -3.20

Forecast

Many of our clients are demanding wool from farms that no longer mules (NM or CM). Our Authentico Indicators and the Authentico Index values are derived from these farms and relate to good performing fleece wool. Since week 40 after the significant fall in the market (WK39), the Authentico Index value has eased by 5.6% which paints a less dramatic picture than what we might perceive by reading the general market reports and indicators. The real picture is that good performing NM/CM wool clips are attracting more general competition week in and week out. All things considered, this is giving those growers assurance that in tough times, they might be better placed to get through these circumstances.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 45                     5526                         4522                18.2%

South                     M 45                    15466                        12611               18.5%

West                       F 45                      4346                         3528               18.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 46                         T                               6209

South                     M 46                       T-W                           13994

West                        F 46                         W                              5457

 

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