Archive for category: Australian Weekly Market Report

Comment

There was little change in the market again this week. The market seems almost in a holding pattern awaiting the next significant move. Best fine wool prices are a little less extreme but in general the market closed around similar levels to those of last week. Next week’s Sydney sale is a designated superfine sale and we tend to get more of the finer hogget’s coming onto market from now through to November.

The crossbred market remains in a poor state with the 28.0 and 30.0 micron AWEX MPG’s at the lowest point now for the past five years.

AWEX Eastern Indicator compared with 08/10/2021

Eastern Indicator

Close: 1323

Change in % -1.19

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

Authentico Index Values

15 Micron

Close: 3756

Change in %:  -4.13

16 Micron

Close: 3088

Change in %: -1.08

17 Micron

Close: 2743

Change in %: -1.29

18 Micron

Close: 2299

Change in %: -1.45

19 Micron

Close: 1852

Change in %: -0.16

Authentico Indicator

Close: 2691

Change in %: -1.61

Forecast

No doubt many are watching the AWEX EMI in both AUD and USD. Since mid-August there seems to be a low point that gains more trading support. It’s almost a ‘buy in’ level. Since then, the EMI has moved upwards from around the current level (1320/1330) but not below. In USD the trade range has been narrower and sitting constantly around 970 where it is sitting today. Customers are following this and seem reluctant to buy when in an upward trend, but more confident to buy when around today’s level. The usual late October spike could well yet happen but external factors this season do appear a little different. Perhaps the risk that it will occur is keeping client interest around these levels in fear of perhaps missing out.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 15                   10871                  9468                12.9%

South                     M 15                   22108                19358               12.4%

West                       F 15                     7072                   5672                19.8%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 16                      T / W                    10694

South                      M 16                     T / W                   21022

West                        F 16                      T / W                    6309

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

Comment

An incredibly difficult week for exporters this week with negative activity at auctions on Wednesday as limited trading and a general nervousness from the Chinese sector due to covid and power related issues. Add to this cash flow constraints coupled with slow shipping schedules and rising container costs. The market dropped a solid 30 cents on the Eastern Indicator and grower resistance with approx. 25% of the offering passed in and withdrawn was enough to generate active trade for Thursday auctions. Most sectors were active and helping most micron indicators into positive territory by auction close. RWS & NM wool was keenly sought again this week with good incentives for best style and strength on offer. Interesting to note that we are experiencing some resistance from international customers as RWS has rallied to seemingly unsustainable levels.

AWEX Eastern Indicator compared with 24/09/2021

Eastern Indicator

Close: 1337

Change in % -2.30

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

Authentico Index Values

15 Micron

Close: 3720

Change in %:  -3.20

16 Micron

Close: 3198

Change in %: +1.30

17 Micron

Close: 2759

Change in %: +0.40

18 Micron

Close: 2284

Change in %: +0.20

19 Micron

Close: 1799

Change in %: -2.40

Authentico Indicator

Close: 2704

Change in %: -0.11

Forecast

The outlook for the market in the coming weeks is quite positive. With auction volumes around the 35-40,000 bale mark and growers prepared to hold if prices are not reflective of good value will certainly see the market stay in positive territory. Increased activity from Europe particularly in the high quality fine end of the market is encouraging.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 13                   11604                   9271                20.1%

South                     M 13                  20389                 16259               20.3%

West                       F 13                    7536                     5040                33.1%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 14                      W / T                    12119

South                      M 14                     W / T                   23249

West                        F 14                      W / T                     6751

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

Comment

In a week where we thought the market was going to struggle it finished the week in positive territory with a couple of interesting highlights. FNF wool throughout the micron categories continues to bring small incentives in prices when compared to VM2% and above which are generally discounted. RWS NM/CM wool is still in keen demand with incentives increasing to around 10/15% above the spot market which is becoming the expectation of many growers. China is still evaluating the market and remains nervous about local processing and increased sea freight costs and export textile charges into Europe and USA. Europe is quietly optimistic for an improvement in weaving types and currently experiencing good demand for processed and knitting types which should see the market with a  positive attitude to the final quarter of 2021. Fine market indicators continue to increase despite the 15 micron which faltered this week, however demand remains strong.

AWEX Eastern Indicator compared with 03/09/2021

Eastern Indicator

Close: 1352

Change in % -0.70

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

Authentico Index Values

15 Micron

Close: 4230

Change in %:  -5.7

16 Micron

Close: 3183

Change in %: 0.00

17 Micron

Close: 2660

Change in %: +2.97

18 Micron

Close: 2225

Change in %: +1.20

19 Micron

Close: 1807

Change in %: +0.80

Authentico Indicator

Close: 2706

Change in %: +0.30

Forecast

The market seems to be on the edge of more positive times with a relatively empty pipeline for greasy wool. We are seeing more enquiry across a wide range of types and destinations as demand for responsibly sourced wool is on the increase and volumes remain relatively small when compared to the total national supply.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 11                   9989                  8644                13.5%

South                     M 11                  17417                  15344               12.0%

West                       F 11                    5419                   4661                  14.0%

Auction offering – next week

Market          Sale          Sale days

North                      S 12                      T / W

South                      M 12                     T / W

West                        F 12                      T / W

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

Comment

A more subdued week of activity this week with the A$ slightly increased, slow cash reserves and continued shipping and containerization problems all affecting trading and indent buying conditions. Again a highlight of the week was good incentives paid for RWS certified wool with increased competition from China and Europe. The emphasis weekly now is wool that is NM/CM of high quality is keenly sought by all sectors. Heavy discounts applied to inferior style and heavy burr remain consistent in the early part of the season. Reports of increased activity on weaving types out of Europe is encouraging with consistent activity on processed and knitting types. China in a slight hiatus as they deal with renewed COVID restrictions and increased container costs on exported textiles.

AWEX Eastern Indicator compared with 20/08/2021

Eastern Indicator

Close: 1332

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: 3944

Change in %:  -0.55

16 Micron

Close: 3085

Change in %: -0.13

17 Micron

Close: 2604

Change in %: -1.28

18 Micron

Close: 2171

Change in %: -2.47

19 Micron

Close: 1774

Change in %: -0.44

Authentico Indicator

Close: 2621

Change in %: -1.16

Forecast

Seasonal conditions are the best we have seen for many years producing some of the nicest wool on offer will hopefully encourage exporters and processors in the coming weeks and months as we head into the busiest buying and selling quarter of the year. Strong demand for NM/CM and RWS certified will surely drive the market as sustainability, traceability and environmental standards play there part in the textile industry quest to roll back climate change.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 09                  10928                  8911                18.5%

South                     M 09                  15495                 12893                16.8%

West                       F 09                    7761                    5402                 30.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 10                      T / W                         11050

South                      M 10                     T / W                         20673

West                        F 10                      T / W                           5400

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

Comment

The market numbers certainly weren’t great reading on Tuesday but high passed in and withdrawn rates reduced the volume sold to the trade and limited any damage to a minimum. The silver lining was the competition from Italian interests on better fine wool. As we’ve often stated, the mulesing status should be considered like an insurance policy. When the Chinese demand is limited, the deeper supply chain interest for wool from farms who no longer mules is enough to help those clips through these difficult periods. It was the same when the Covid-19 pandemic first hit in 2020. It’s not always about the premium from day to day but also about consistent demand when it’s needed most, like now. The Authentico Indicators and Index Values Authentico Index Values and Authentico Indicator by The Schneider Group (gschneider.com) were less impacted this week with only minimal change.

AWEX Eastern Indicator compared with 13/08/2021

Eastern Indicator

Close: 1335

Change in % -2.7

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

Authentico Index Values

15 Micron

Close: 3792

Change in %:  +1.74

16 Micron

Close: 3001

Change in %: -1.09

17 Micron

Close: 2637

Change in %: -0.68

18 Micron

Close: 2238

Change in %: +0.31

19 Micron

Close: 1799

Change in %: -1.1

Authentico Indicator

Close: 2622

Change in %: -0.19

Forecast

Large volumes were again withdrawn from sale prior to auction or passed in when failing to meet the grower reserve. This is definitely helping the market. The general level of competition on Wednesday in Sydney and Melbourne was more encouraging. There were less holes in the market on Wednesday and the inferior types which often failed to get much interest on Tuesday, were getting more buyer support at this level.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 07                  11386                  7982                29.9%

South                     M 07                  16764                13354                20.3%

West                       F 07                   4088                   1749                57.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                      T / W                         13537

South                      M 08                     T / W                         18806

West                        F 08                       no sale

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