AUSTRALIAN WEEKLY MARKET REPORT

Comment

The Australian dollar has risen by about 5 cents against the USD in the month of February. The Australian dollar is heavily influenced by commodity prices and with iron ore prices surging, the Australian dollar has moved upwards with it. Added to this are signs that the Australian economy is improving.

The AUD strength against the USD was eventually too much for wool prices to sustain. After initially absorbing the currency movement to record an overall increase in USD terms on Tuesday, the market settled over the next two days as interest from our main trade partner in wool, China, was more subdued. As the market eased, the percentage of growers willing to hold their wool for another day increased. With exceptional seasonal conditions and the strength of all other farm commodity prices, growers are more prepared to hold their wool now than they’ve ever been.

Best style and strength NM wool around 17.0 / 18.0 micron was well supported this week by Italian interests in the last reasonable offering of the season. They closed generally firm for the week and have had a positive influence on our Authentico index’s accordingly.

AWEX Eastern Indicator compared with 19/02/2021

Eastern Indicator

Close: 1306

Change in % -0.91

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

Authentico Index Values

15 Micron

Close: 3174

Change in %:  -2.43

16 Micron

Close: 2564

Change in %: -2.36

17 Micron

Close: 2314

Change in %: +1.80

18 Micron

Close: 1973

Change in %: +0.10

19 Micron

Close: 1727

Change in %: -0.69

Authentico Indicator

Close: 2289

Change in %: -0.39

Forecast

We’ve now seen the last of the usual fine wool sales. We expect as we move towards our autumn, that VM will continue to increase and staple strength could be lower. Any drought affected wool that we are now seeing in the eastern markets is wool that has been held by growers since 2020. These will at least have low VM and could help to offset the increase in VM expected from the freshly shorn clips. As a result of this change in supply that’s expected, we’re likely to see interest in the better specification wools sustained while the discount to the inferior types might increase.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 35                      13221                      11227                15.1%

South                     M 35                     26073                     22355               14.3%

West                       F 35                      10844                      7326                32.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 36                      T – W                          12715

South                     M 36                   T – W – T                      27852

West                       F 36                      W – T                           9968

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It has been another very encouraging week for the wool market. Stock levels through the production pipeline have been reduced over the past twelve months and this is leaving many with some interesting decisions to ensure they are not left without stock as global conditions gradually improve. There have been significant improvements in price for the fine wool sector in recent weeks while the selection was favourable. Now that the fine wool offering is dropping off, the focus is shifting to the medium and broader merinos which all advance strongly this week and closed on a very firm note.

AWEX Eastern Indicator compared with 12/02/2021

Eastern Indicator

Close: 1318

Change in % +3.37

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

Authentico Index Values

15 Micron

Close: 3253

Change in %:  -4.8

16 Micron

Close: 2626

Change in %: -0.76

17 Micron

Close: 2273

Change in %: -0.70

18 Micron

Close: 1971

Change in %: +2.18

19 Micron

Close: 1739

Change in %: +2.72

Authentico Indicator

Close: 2298

Change in %: -0.35

Forecast

Another large volume sale next week. The selection is set to deteriorate over the coming months. We’re expecting to see more tender wool and higher VM along with a slow release of grower held drought affected wool that is currently held in store. This should help to maintain pressure on all good specification wool over the short to medium term. Particularly 18.5 micron and finer.

Grass seed or shive is a real problem in the wool combing process. We’re seeing more shive in the offering. Shive is the lightest weight VM in the test but causes the most contamination so we are being cautious during the inspection of the samples.

The market maturity and interest in traceable supply chains and in particular our Authentico Integrity Scheme on traceable wool tops back to the wool grower origin is gaining strong momentum. More and more clients are looking to add a traceable supply chain to their inventory requirements. Now that this option is becoming a commercial reality for our clients, we’re seeing stronger demand for Authentico certified wool.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 34                      11037                      9844                10.8%

South                     M 34                     23588                     21405                9.3%

West                       F 34                       9751                        8839                 9.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 35                      T – W                          13710

South                     M 35                   T – W – T                      28336

West                       F 35                       T- W                          10568

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The week was highlighted by the designated Tasmanian sale. The offering was of mixed quality but included some very stylish fine and superfine wool. There is no doubt that many buyers are focusing on the mulesing status on these speciality types and those clips that were offered with RWS certification attracted very strong and wide spread interest. The market was extremely well supported across all types and descriptions despite the large national offering. Italian interests were more active in the better offering.

AWEX Eastern Indicator compared with 05/02/2021

Eastern Indicator

Close: 1275

Change in % -0.78

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

Authentico Index Values

15 Micron

Close: 3417

Change in %:  +0.2

16 Micron

Close: 2646

Change in %: -0.9

17 Micron

Close: 2289

Change in %: +1.51

18 Micron

Close: 1929

Change in %: +0.73

19 Micron

Close: 1693

Change in %: +2.61

Authentico Indicator

Close: 2306

Change in %: +0.65

Forecast

The volume offered over the past few weeks was expected to ask some questions about the real underlying strength of the market. The market stability, much more than most would have expected, should set the tone for the coming months. While the Chinese market still dominates, there is no doubt more enquiry and buying interest from other origins.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 33                      13507                      11871                12.1%

South                     M 33                     27620                      24016               13.0%

West                       F 33                       8683                        7644                 12.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 34                      T – W                          11594

South                     M 34                      T – W – T                    27397

West                       F 34                       T- W                            9986

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The Australian wool market settled this week with best style/strength wool in keen demand, whilst lower style/strength was irregular. Fine wool is still a main focus from all sectors, particularly 16 micron and finer is where we see the most positive gains. Knitting types remain strong and well supported for first half 2021 delivery. Chinese indent buying remains strong, with interest coming from Europe and India is encouraging. The current A$ level seems to be a comfortable for trading at present as we hope for some stability in the coming weeks. Good offerings of fine wool to come in WK33 and WK34 which may showcase some of the best wool for the season.

AWEX Eastern Indicator compared with 29/01/2021

Eastern Indicator

Close: 1285

Change in % -0.46%

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

Authentico Index Values

15 Micron

Close: 3410

Change in %:  +0.65

16 Micron

Close: 2670

Change in %: +0.56

17 Micron

Close: 2255

Change in %: +0.00

18 Micron

Close: 1915

Change in %: -1.33

19 Micron

Close: 1650

Change in %: -2.19

Authentico Indicator

Close: 2291

Change in %: -0.26

Forecast

The negative impact from last week close in Fremantle was absorbed this week with good activity across all sectors of the market. The larger offerings seem to meet market demand with a passion for fine wool less than 16 micron and an oversold short wool market of scouring, carbonizing and knitting types. Wk33 & Wk34 see a continued offering of very stylish fine wool types which the market seems to have a genuine desire for. These weeks could provide the last opportunity for brand partners to satisfy any quantity of the highest quality the market has to offer.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 32                      12916                        11742              9.1%

South                     M 32                     22607                       20511              9.3%

West                       F 32                       9603                         8671               9.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 33                      T – W                          13557

South                     M 33                      T – W – T                    30595

West                       F 33                       T- W                            8730

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

A degree of panic buying emerged this week. There is no shortage of wool in general terms, with broker warehouses still holding more bales than this time last year. However, there is no doubt a shortage of fine wool and these types are more affected by this squeeze than the other types. There is sufficient interest in all wool sub 18.0 micron, but particularly those 16.0 and finer. It’s not just combing merino types but cardings and crossbred wools were also keenly sought after this week. All current buying is for prompt demand and immediate delivery. The better fine types were well supported to the close of sale while the medium and broader merinos fell late in the sale Thursday.

AWEX Eastern Indicator compared with 22/01/2021

Eastern Indicator

Close: 1291

Change in % +7.40%

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

Authentico Index Values

15 Micron

Close: 3388

Change in %:  +11.08

16 Micron

Close: 2655

Change in %: +2.51

17 Micron

Close: 2255

Change in %: +3.49

18 Micron

Close: 1941

Change in %: +5.49

19 Micron

Close: 1687

Change in %: +7.59

Authentico Indicator

Close: 2297

Change in %: +5.08

Forecast

We have a few sales in February where we expect a better selection of fine wool. There is a fine wool sale next week in Sydney (WK32) that will offer some selected clips from the Goulburn / Yass district. This is followed by the Tasmanian feature sale in Melbourne (WK33) and a New Zealand offering (WK34)  that is expected to offer predominantly fine and superfine types.

The cheaper market in Fremantle on Thursday is expected to flow through to Sydney and Melbourne auctions on Tuesday next week but some expect that the market might not be that bad. For sure it will be cheaper but growers are expected to pass wool in and surely the market sentiment can’t be that much different form one week to the next.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 31                     10244                        9761                4.7%

South                     M 31                     21053                       19756               6.2%

West                       F 31                       8544                         8025               6.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 32                      T – W                          13432

South                     M 32                      T – W                          24975

West                       F 32                       T- W                            8417

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was a very positive week for the Australian wool market. 44,000 bales were offered. This is 10% less than the indication last Friday and all types and descriptions were keenly sought after. The particular focus was on the finer microns. The Authentico Index values for 15.0 and 16.0 micron are now at the highest levels since we started recording them in July 2019. The 15.0 micron Authentico index is about 10% higher than February 2020 and 16.0 micron around 5% higher. There is good general demand for fine micron types but we have also seen a significant drop in supply. The AWTA key test for the 6 months to end December indicates that production for all 16.5 micron and finer is down 32% compared to the corresponding period the year before (2019). 13.5/15.5 micron is closer to 50% down. 16.5/17.5 micron is also 25% lower in comparison. The trend of the national clip has been getting finer year on year for at least 30 years now. This is a significant change.

AWEX Eastern Indicator compared with 15/01/2021

Eastern Indicator

Close: 1202

Change in % +2.56%

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

Authentico Index Values

15 Micron

Close: 3050

Change in %:  +5.24

16 Micron

Close: 2590

Change in %: +8.64

17 Micron

Close: 2179

Change in %: +7.6

18 Micron

Close: 1840

Change in %: +5.5

19 Micron

Close: 1568

Change in %: +1.55

Authentico Indicator

Close: 2186

Change in %: +6.53

Forecast

With the main focus on finer and superfine types, it’s also important to note that we have almost come to the end of the selection of these types for the season. We do have a couple of sales that will offer some fine wool in February but with the improved season we expect the selection to get broader and with more VM (skirtings) as we move towards July.

Sales will be held on Wednesday and Thursday next week as we celebrate Australia Day on Tuesday

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 30                     11734                       10814                7.8%

South                     M 30                     23861                     22394                6.1%

West                       F 30                       8659                       7675                 11.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 31                      W – T                          10939

South                     M 31                      W – T                          23699

West                       F 31                       W -T                            8480

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Sales have opened in 2021 on a very positive note. Despite the large national offering and a stronger Australian Dollar against the USD, all types and descriptions were in demand. There was strong interest on the finer microns but it should also be noted that they are in smaller supply than what we would expect. The month of January is often a positive month for the auctions and regardless of the overall global situation, it was very encouraging to see that wool is in demand. The market was well maintained to the close in Fremantle.

AWEX Eastern Indicator compared with 18/12/2020

Eastern Indicator

Close: 1172

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: 2898

Change in %:  +2.11

16 Micron

Close: 2384

Change in %: +3.74

17 Micron

Close: 2025

Change in %: +0.5

18 Micron

Close: 1744

Change in %: +1.1

19 Micron

Close: 1544

Change in %: +1.58

Authentico Indicator

Close: 2052

Change in %: +1.74

Forecast

We have another large volume national sale next week before volumes are expected to settle a little. There is still some wool held in brokers stores nationally. No doubt that if this current market trend continues, we will see some of this wool come onto the market slowly. It’s not all for sale at these levels and we expect some growers to continue to hold wool as they have done historically. While we might see further easing in the broader merinos and crossbred types, like this week, the fine and superfine merino types are likely to again be well supported in limited supply.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 29                     13168                       11761                 10.7%

South                     M 29                     28573                     25286                11.5%

West                       F 29                      10549                       9531                  9.7%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 30                     T – W                           12,927

South                     M 30                   T – W – T                      27,027

West                       F 30                      T – W                            9,286

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

A little under 45,000 bales were offered to the trade in the final sale for 2020. This is about 9% less than what was rostered. We appreciate the transparent approach of the Australian industry in providing such information but this ‘over estimation’ could well have created unnecessary concern leading into the large sale. We urge all brokers to take care when providing their pre-sale figures. The information is made public and, when incorrect, it can place unnecessary pressure in a fragile market. Only 36,000 of these bales were eventually sold. The market was cheaper across the board in local currency terms but with the Australian dollar strengthening to 0.755 against the USD, the market was only down about 2% over the sale in US terms. It was well worth noting that prices were improving across the whole range of types towards the close of sale to finish on an upward trend. Like last week, the better fine fleece and all fine carding types were most keenly sought after in limited supply.

AWEX Eastern Indicator compared with 11/12/2020

Eastern Indicator

Close: 1157

Change in % -3.42%

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

Authentico Index Values

15 Micron

Close: 2837

Change in %:  +0.42

16 Micron

Close: 2298

Change in %: -2.59

17 Micron

Close: 2015

Change in %: -2.37

18 Micron

Close: 1725

Change in %: -3.47

19 Micron

Close: 1520

Change in %: -3.73

Authentico Indicator

Close: 2017

Change in %: -2.42

Forecast

We’d like to wish everyone a very Merry Christmas and a safe, healthy and happy New Year. We very much look forward to improving global circumstances in 2021. Sales will resume the week of 11th January.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 25                     10674                       9419                 11.8%

South                     M 25                     24132                      19650               18.6%

West                       F 25                      10029                       7540                24.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                     no sale

South                     no sale

West                       no sale

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

All types and descriptions rallied this week despite nearly 42,000 bales rostered for sale. As with recent weeks, the eventual offering was less than anticipated. The final volume actually offered was 8% lower and another 5% was passed in below grower expectations despite the positive market. While buyers were actively seeking the better performing types, the shorter knitting types were also keenly supported. Even the crossbred types were dearer after having been generally neglected in recent weeks. According to AWEX reports, M$51.1 worth of wool was sold to the trade over the two sale days.

AWEX Eastern Indicator compared with 04/12/2020

Eastern Indicator

Close: 1198

Change in % +4.72%

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

Authentico Index Values

15 Micron

Close: 2825

Change in %:  +5.69

16 Micron

Close: 2359

Change in %: +3.78

17 Micron

Close: 2064

Change in %: +4.19

18 Micron

Close: 1787

Change in %: +4.50

19 Micron

Close: 1579

Change in %: +3.54

Authentico Indicator

Close: 2067

Change in %: +4.29

Forecast

There is just the one sale remaining before the three-week Christmas recess. Current quantities are listed as around 49,000 bales for the week. This kind of ‘surprise’ increase could well cause some reaction from the trade but we hope and expect only minor movements into the final sale of 2020. Everyone will be hoping for a relatively positive finish. Eventually less wool will be offered and growers have the right to pass their wool in, as they’ve done this year, and this will limit the volume available for sale. There is a shortage of cardings and knitting types and this could flow on to the better combing types. The extra volume next week is likely to be more associated with crossbred fleece and crossbred lamb wool plus some drought affected bales that have been waiting for a better market. Superfine merino and quality fine merino are still in short supply and this is unlikely to change next week despite the quantity.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 24                     9256                        8918                  3.7%

South                     M 24                    21029                      19851                 5.6%

West                       F 24                      7551                         7178                  4.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 25                        T / W                       10848

South                      M 25                       T / W                       27961

West                        F 25                        T / W                       10317

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was another positive week for the wool market. There appears to be more sectors active at the moment. There remains keener interest in the better lots and while difficult to measure in premiums, we continue to see more demand at auction for NM lots with certain good specifications. While prices settled a little on Tuesday, the relatively small movement, on recent standards, did lead to more confidence leading into Wednesday’s sale. No doubt some timing advantage with any requirement for pre-New Year shipment required to be bought now did help the market.

AWEX Eastern Indicator compared with 27/11/2020

Eastern Indicator

Close: 1144

Change in % -0.52%

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

Authentico Index Values

15 Micron

Close: 2673

Change in %:  +1.71

16 Micron

Close: 2273

Change in %: +1.65

17 Micron

Close: 1981

Change in %: +1.64

18 Micron

Close: 1710

Change in %: -0.58

19 Micron

Close: 1525

Change in %: +1.33

Authentico Indicator

Close: 1982

Change in %: +1.54

Forecast

While 41,000 bales were initially rostered for sale this week, only 36,000 bales were eventually offered and another 10% passed in. This is helping to ensure some stability. Another 41,000 bales are rostered for sale next week with the potential for less being available come sale day. There is no sale in South Africa and the merinos from New Zealand are coming toward the end of the season. Crossbred types have fallen a little from favour but they too remained firm on Wednesday. The Australian dollar is continuing to strengthen against the USD and this will be closely monitored by traders leading into Tuesday’s sale.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 23                     8920                        8054                  9.7%

South                     M 23                    20379                      18256                10.4%

West                       F 23                      6687                         6013                 10.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 24                        T / W                       10301

South                      M 24                       T / W                       24408

West                        F 24                        T / W                        7118

 

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