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.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was overall a slightly easing trend this week with the market again outperforming the general expectations. The same factors were influencing market trends with vegetable matter having the greatest influence. Better low VM types continue to attract good demand with some variation in the inferior and faulty types.

The was a significant disparity in market trends on the AWEX reports when comparing the MPG’s between Sydney and Melbourne on Wednesday. This would be largely due to a higher volume of RWS certified wool sold in Melbourne on that day. This has influenced the higher average prices in that market on that day.

AWEX Eastern Indicator compared with 08/04/2022

Eastern Indicator

Close: 1367

Change in % -0.15

Authentico Index Values

15 Micron

Close: 3803

Change in %: -1.04

16 Micron

Close: 3288

Change in %: -0.69

17 Micron

Close: 2793

Change in %: +1.48

18 Micron

Close: 2244

Change in %: -1.62

19 Micron

Close: 1798

Change in %:  -1.48

Authentico Indicator

Close: 2729

Change in %: -0.36

Forecast

Auctions will close for 1 week, returning the week of 25th April. This will be a Wednesday and Thursday sale with a national public holiday, ANZAC day, falling on Monday 25th.

We take this opportunity to wish everyone a Happy Easter

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 411227310951 10.8%
SouthM 412314720840 10.0%
WestF 41 78916637 15.9%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 42 no saleEaster recess
SouthM 42
WestF 42

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Another variable result this week with the market up on Tuesday and down on Wednesday but it was the inferior offering that is attracting most market comment. As a result of seasonal conditions, the selection is vastly different to what we would normally have available. There is more VM, more colour and the micron is broader on average. The difference on Wednesday was that the buyers were a little more selective and the heavier fault (VM) types were those most affected by the softer tone in the market.

AWEX Eastern Indicator compared with 01/04/2022

Eastern Indicator

Close: 1369

Change in % -0.43

Authentico Index Values

15 Micron

Close: 3843

Change in %: -4.85

16 Micron

Close: 3311

Change in %: +2.54

17 Micron

Close: 2752

Change in %: -0.79

18 Micron

Close: 2281

Change in %: -0.09

19 Micron

Close: 1825

Change in %:  +2.82

Authentico Indicator

Close: 2739

Change in %: -0.18

Forecast

We have another reasonably large offering next week, the last before the Easter recess followed by a week without auction sales. Despite the easing trend this week, the EMI in USD remained positive and extremely resilient around this basis.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 40101449131 10.0%
SouthM 402344420174 13.9%
WestF 40 91497506 18.0%

Auction offering – next week

MarketSale
Sale days
Volume
NorthS 41 T/W13518
SouthM 41 T/W25395
WestF 41 T/W 9500

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Buyers were understandably cautious ahead of another large national offering and the opening result showed. All prices eased in the first hour of sale but demand slowly but surely improved over the course of the week. The relative stability in the market is creating significant confidence despite the global uncertainty. We collect the AWEX MPG (micron Price Guide) values and compare them to the rolling average over set periods of time. The current 19.0 MPG is 1682, the six month average is 1683, and the twelve month average is 1678. Interesting figures. In the 20.0 MPG, the figures show similar trends. 1388 is current, 1392 is six month average and 1385 is the twelve month average. In the finer types, the current strength has them ahead of the six and twelve month averages now, but the gap is closing. This is providing a level of certainty for all through the pipe line.

AWEX Eastern Indicator compared with 25/03/2022

Eastern Indicator

Close: 1375

Change in % -0.65

Authentico Index Values

15 Micron

Close: 4039

Change in %: unchanged

16 Micron

Close: 3229

Change in %: -0.49

17 Micron

Close: 2774

Change in %: -1.0

18 Micron

Close: 2283

Change in %: -1.63

19 Micron

Close: 1775

Change in %:  -1.55

Authentico Indicator

Close: 2744

Change in %: -0.94

Forecast

While the focus is definitely on the better wools, the more inferior wools are being dragged along as well. There is no argument that the market is exceeding all expectations. Growers have become very aware when to sell and not to sell and they are showing a strong resistance to sell in a falling market. This is definitely influencing the stability of price across the full range of types.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 391184310573 10.7%
SouthM 392378020565 13.5%
WestF 39 9099 7724 15.1%

Auction offering – next week

MarketSaleSale

days
Volume
NorthS 40T/W12170
SouthM 40T/W25537
WestF 40T/W11499

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Despite the sharp increase in the value of the Australian dollar, the wool market has held its nerve once again. According to AWEX reports, this week’s turnover was $56.09 M at national auction sales. The market settled on Tuesday but the movement was in line with the change in currency values, AUD v USD. With this fall in local values, growers showed once again their resistance to sell wool in a falling market. This helped prices to rally and remain fairly flat over the last two days of sale. The key point to note is that the benchmark AWEX EMI closed 0.7% higher in USD terms, indicating consistent enquiry from our main customer, China. 17% of the national offering was passed in as it failed to reach the grower reserve. Of most demand again were fleece lines with low VM content (1.0% or less) and with good specification. As the selection deteriorates, this is becoming more pronounced.

AWEX Eastern Indicator compared with 04/03/2022

Eastern Indicator

Close: 1384

Change in % -1.7

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

Authentico Index Values

15 Micron

Close: 4039

Change in %: +2.0

16 Micron

Close: 3245

Change in %: -1.45

17 Micron

Close: 2802

Change in %: -0.71

18 Micron

Close: 2321

Change in %: +1.58

19 Micron

Close: 1803

Change in %:  -2.11

Authentico Indicator

Close: 2770

Change in %: -0.03

Forecast

Most would be a little surprised by the performance of the market but those competing strongly at auction seem less concerned. Obviously, demand is consistent enough for the large trading companies to continue at these levels with prices relatively flat in US values. The demand for the fleece lines with heavier fault was a little irregular, however buyers continued to consume them despite the volume of these types on offer. We often expect the supply to drop from March but the larger brokers advise that April and May are two of their biggest months for wool receivals. Another 48,000 bales are listed for sale next week.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 3811439 9531 16.7%
SouthM 382499020996 16.0%
WestF 38 8720 6974 20.0%

Auction offering – next week

MarketSaleSale daysVolume
NorthS 39T/W11697
SouthM 39T/W/T25805
WestF 39T/W10621

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Week 37 saw a resurgence of better prices for superfine merino 16.5 micron and finer this week, especially certified RWS, NM/CM all showing gains of between 2.5 and 4 % which was against the trend of the broader microns this week.

WHY? We are seeing good demand for the top end weaving and spinning clients eager to buy what is left of the higher quality wool available through this part of the season which is showing signs of deteriorating style and character due to the seasonal conditions. Chinese indent business still leads the way, adding pressure to need for the lower vm wools at this time of the year.

Shipping and finances are still a big concern as exporters try to maneuver their way through this difficult landscape as the market maintains its composure.

AWEX Eastern Indicator compared with 04/03/2022

Eastern Indicator

Close: 1408

Change in % -0.4

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

Authentico Index Values

15 Micron

Close: 3960

Change in %: +4.0

16 Micron

Close: 3293

Change in %: +2.5

17 Micron

Close: 2822

Change in %: +0.5

18 Micron

Close: 2285

Change in %: -2.0

19 Micron

Close: 1842

Change in %:  -0.4

Authentico Indicator

Close: 2771

Change in %: +0.80

Forecast

Another large volume available nationally next week with 48,000 bales on offer which will definitely test the resolve of exporters and processors alike with the volatile A$ bouncing between 71 and 74 US will certainly make things interesting. The selection is heavily weighted with a large offering in Room 2 skirtings, crossbred and oddments, however this is an area of the market that has been showing good demand and stability.

Seasonal conditions, delays in shearing and continuous wet weather are playing there part in helping the market at this point.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 37122691100310.3%
SouthM 372512722922 8.8%
WestF 37 9855 7705 21.8%

Auction offering – next week

MarketSaleSale daysVolume
NorthS 38W/T10913
SouthM 38T/W/T26884
WestF 38W/T10489

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The Australian wool auction market has remained extremely resilient in recent weeks under the circumstances and this week was no exception. With 49,400 bales up for sale, almost 90% were sold to the trade with a value of $71.65 m. There is pressure mounting on vegetable matter. The outstanding season is resulting in higher VM in the clip and exporters are finding it a challenge to average the required 1.0% for a standard Chinese contract.

The quality of superfine wool on the market is not as good when compared to those on offer through February. This is creating a little more volatility in the 17.5 and finer range. We are finding the Chinese qualities tending to be a little dearer in this range but the better ones are off a little in reduced volume and lower quality.

AWEX Eastern Indicator compared with 04/03/2022

Eastern Indicator

Close: 1413

Change in % +0.43

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

Authentico Index Values

15 Micron

Close: 3803

Change in %: -0.26

16 Micron

Close: 3212

Change in %: -1.56

17 Micron

Close: 2807

Change in %: -2.12

18 Micron

Close: 2328

Change in %: -2.79

19 Micron

Close: 1849

Change in %:  -0.32

Authentico Indicator

Close: 2748

Change in %: -1.78

Forecast

Sales will again be held next Wednesday and Thursday with a public holiday falling in Victoria on Monday. As the selection will become heavier in vegetable matter, we expect competition for those fleece lines with less than 1.0% to intensify. Average fine wool will continue to sell well with very welcome premiums being paid for each point of micron. The good season has resulted in a broader national clip in general, and less superfine merino wool on the market. The strong prices have also flushed out grower held stocks in the fine microns so we expect there is also less held in store in this range.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 36136351205211.6%
SouthM 3624738229867.1%
WestF 3611058942414.8%

Auction offering – next week

MarketSaleSale daysVolume
NorthS 37W/T12082
SouthM 37W/T26744
WestF 37W/T9718

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The general softening of the market this week was more pronounced in the medium to broader merinos. The general market tone is still very positive all things considered. But it is also heavily influenced by the large volume of inferior quality. Longer staple length and lower staple strength when added to the increase in VM, has dampened buyer enthusiasm for these more inferior types. But at a price, they are still being sold to the trade. Low VM and good staple strength are the key for increased competition at the moment. The passed in rate, dominated by inferior types, increased as the week progressed with 20% of the offering failing to reach grower expectation on Thursday in Melbourne. The smaller offering of quality fine wool was again keenly sought after and are certainly performing better than expected in small supply. The Authentico indicator includes down to 15.0 micron.

AWEX Eastern Indicator compared with 18/02/2022

Eastern Indicator

Close: 1407

Change in % -0.98

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

Authentico Index Values

15 Micron

Close: 3813

Change in %: +0.11

16 Micron

Close: 3263

Change in %: +0.96

17 Micron

Close: 2868

Change in %: +0.99

18 Micron

Close: 2395

Change in %: +1.05

19 Micron

Close: 1855

Change in %:  -1.49

Authentico Indicator

Close: 2798

Change in %: +0.68

Forecast

Not until quantities are reduced or the unlikely event that shipping schedules will improve soon, will we see any significant change in the market. We are confident that there is sufficient interest in wool but exporters are not confident to be able to ship it and financial resources continue to dry up.

Auction offering – current week

MarketSaleOfferedSoldPassed In
NorthS 35150191321612.0%
SouthM 35251502238211%
WestF 359951843015.3%

Auction offering – next week

MarketSaleSale daysVolume
NorthS 36W/T14109
SouthM 36W/T25842
WestF 36W/T12511

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