AUSTRALIAN WEEKLY MARKET REPORT

Comment

Auction sales resumed after the Easter Recess. A slightly larger sale this week with 43,000 bales on offer and the Australian dollar 2.4% and 1.5% easier against the USD and EURO respectively since the last auction on 17th April. Prices opened stronger but not to the full extent of the currency adjustment. There was little change on Thursday and buying activity was as stable as we’ve seen in recent weeks. Perhaps confidence has been helped by consideration of quantities to come between now and August.

 

AWEX Eastern Indicator compared with 17/04/2019

Eastern Indicator

Close: 1960

Change in % +0.87%

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

Schneider Indicators compared with 17/04/2019

15 Micron

Close: 2,672

Change in %: -0.26

16 Micron

Close: 2,452

Change in %: -0.73%

17 Micron

Close:  2,367

Change in %: +0.21

18 Micron

Close: 2,322

Change in %: +1.85

19 Micron

Close: 2,201

Change in %: +0.50

 

Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.

Wool indicators are anyway based on Australian Dollar.

If you want to learn more about SCHNEIDER indicators Click here.

Forecast

Despite the well documented reduced production, AWTA test data indicates an increase by 78.8% of wool tested 16.5 micron and finer to the end of April compared to the same period last season. 17.0 micron, an increase of 23.0%. Despite this quite dramatic volume increase and reports of a drop in consumption of fine wool, the AWEX Micron Price Guide for 17.0 (MPG) published this week still has it in the 73rd percentile for the last 5 years. Meaning prices have been lower than this level 72% of the time over the past 5 years. This is quite a strong point for the potential of 17.0 micron and finer to improve when the better quality selection becomes available from August. Supply is expected to decrease (drought and poor lambing last year) and a possible shift to a better growing season this year (time will tell) could easily result in a reduction in volume of tested fine wool. There is currently only about a 7% difference in average price between 17.0 micron and 21.0 micron to add further thought to this prospect. Crossbred wool (25.0/30.0 micron) remain at historically high levels. Crossbred producers should take care of their valuable product and employ a classer to prepare their clip to the Code of Practice to obtain full advantage of this current trend.

Auction offering – current week

Selling Centres for week 44

Market          Sale          Offered             Sold       Passed In

North                    S 44                     10443                       10120                 3.1%

South                   M 44                     21790                      20592                 5.5%

West                     F 44                      10820                        9578                 11.5%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 45                        W-T                             8159

South                   M 45                       W-T                            19248

West                     F 45                        W-T                             6057

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The Australian Market seemed to find a level this week with a range of types and microns varying slightly each way. As with recent weeks we saw no significant change, with the AWEX EMI closing 7c higher than last week. The highlight of the week was the annual sale held at the Sydney Royal Easter show across Tuesday and Wednesday. This event see’s close to 1 million people making the trip to Homebush over the two weeks, bringing new interest into the wool sales and attracting a lot of attention to the industry. A larger offering including a few slightly better style types meant better specification fine wools remained keenly sought after with an evident premium for NM clips still there. The bulk of the offering was similar to recent weeks with low yields. Lower style wools somewhat ‘caught up’ as buyers looked to gain some quantity before the Easter break period. Crossbreds again continued to rise this week particularly in the Northern Region.

 

AWEX Eastern Indicator compared with 11/04/2019

Eastern Indicator

Close: 1943

Change in % +0.36%

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

Schneider Indicators compared with 11/04/2019

15 Micron

Close: 2,751

Change in %: +1.6

16 Micron

Close: 2,444

Change in %: -1.35%

17 Micron

Close:  2,326

Change in %: -1.07

18 Micron

Close: 2,291

Change in %: +0.44

19 Micron

Close: 2,194

Change in %: -0.09

 

Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.

Wool indicators are anyway based on Australian Dollar.

If you want to learn more about SCHNEIDER indicators Click here.

Forecast

With a one week break from sales now coming up there will be a similar sized sale to this week when we return in Sale 44. Due to seasonal conditions the quality of clips is also expected to be lower than usual as well as continued low yields. However as usual there should remain a number of nice wool’s coming through. With the current Foot and Mouth Disease situation in South Africa not forecast to be resolved in the immediate future it is expected competition for Chinese spec clips to remain steadily firm.

Auction offering – current week

Selling Centres for week 42

Market          Sale          Offered             Sold          Passed In

North                    S 42                      9663                       9115                    5.7%

South                   M 42                     21165                     19249                   9.1%

West                     F 42                       9946                      8210                  17.5%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                   S 43                      no sale

South                   M 43                     no sale

West                     F 43                      no sale

 

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