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.

AUSTRALIAN WEEKLY MARKET REPORT

Comment

There has been little change in the overall market this week. Fine merino wool, particularly those lines with good specification, were keenly sought after while at the other end of the spectrum, the broader crossbred wools were less favoured. Also of note was the interest in fine carding types which were also dearer over the week.

AWEX Eastern Indicator compared with 20/11/2020

Eastern Indicator

Close: 1150

Change in % -0.77%

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

Authentico Index Values

15 Micron

Close: 2628

Change in %:  +1.27

16 Micron

Close: 2236

Change in %: +0.95

17 Micron

Close: 1949

Change in %: +0.10

18 Micron

Close: 1720

Change in %: -1.09

19 Micron

Close: 1505

Change in %: unchanged

Authentico Indicator

Close: 1952

Change in %: -0.36

Forecast

We have just three week’s of sales remining until the Christmas recess. It’s been a difficult year but the market is finishing on a strong note.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 22                     10127                        9161                  9.5%

South                     M 22                     19874                      17435                12.3%

West                       F 22                       6534                       5530                 15.4%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 23                        T / W                       10088

South                      M 23                       T / W                       23850

West                        F 23                        T / W                       7884

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The market traded in a narrow range again this week, highlighted by the positive tone at the close on Wednesday. The market was most definitely more keenly contested in the closing stages of Wednesday’s sale and finished strongly in Fremantle. While it’s difficult to measure for a variety of quality variables, the non mulesed selection is again attracting a wider range of competition and certain NM lots are more difficult to buy, pushed by greater competition. Demand is coming from China as well as Europe with a particular focus around 17.0 to 18.0 micron. This strength is reflected in our Authentico Index Values for these micron groups.

AWEX Eastern Indicator compared with 13/11/2020

Eastern Indicator

Close: 1159

Change in % -2.52%

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

Authentico Index Values

15 Micron

Close: 2595

Change in %:  -2.99

16 Micron

Close: 2215

Change in %: -1.42

17 Micron

Close: 1947

Change in %: -0.92

18 Micron

Close: 1739

Change in %: +1.22

19 Micron

Close: 1505

Change in %: -1.83

Authentico Indicator

Close: 1959

Change in %: -0.81

Forecast

41,000 bales are currently listed for sale next week. M$40 AUD worth of wool was sold to the trade in week 21 so we are seeing a more consistent level of finance coming into the market. According to AWEX reports, first hand offered wool at auction is down just 0.9% compared to the same period last year. This is despite the AWTA figures indicating a much poorer picture with regards to production. AWTA tested bales to end October were down 12% year on year. With the market resurgence since the low period of early September, we remain confident in the medium term.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 21                      9148                        7550                  17.5%

South                     M 21                     18863                      15458                18.1%

West                       F 21                       6904                       5092                 26.2%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 22                        T / W                       10858

South                      M 22                       T / W                       22971

West                        F 22                        T / W                       7698

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Prices have ended around similar levels of last week. After initially opening cautiously, prices improved over the remainder of the sale. The market was in a stronger position at the close of sale Tuesday night than what most reports and indexes would lead us to believe. This flowed into a more positive tone on Wednesday. Again, prices opened on a slightly cautious tone with buyers careful with price considering the wild fluctuations we’ve experienced in recent weeks. However, prices steadied and improved as the sale progressed. All in all a good positive market tone under the circumstances. Hopefully this help to improve market confidence in the coming weeks.

AWEX Eastern Indicator compared with 06/11/2020

Eastern Indicator

Close: 1189

Change in % +0.08%

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

Authentico Index Values

15 Micron

Close: 2675

Change in %:  +0.11

16 Micron

Close: 2247

Change in %: 0

17 Micron

Close: 1965

Change in %: +0.05

18 Micron

Close: 1718

Change in %: +0.94

19 Micron

Close: 1533

Change in %: +0.33

Authentico Indicator

Close: 1975

Change in %: +0.30

Forecast

While still erratic, the market now appears to be trading within a more narrow range. We have only five sale weeks remining this calendar year. Many will be looking forward to 2021 and hopefully better times, but in the end the wool market has rebounded in 2020 better than many would have expected a few months ago. No doubt influenced by reduced global supply.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 20                      9091                        7943                  12.6%

South                     M 20                     19377                      16919                  12.7%

West                       F 20                       9044                       8318                   8.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 21                        T / W                        9161

South                      M 21                       T / W                       23446

West                        F 21                        T / W                        7932

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Market volatility remains the new normal. Greasy wool is being traded on a ‘hand to mouth’ requirement for prompt delivery. In the current environment, customers are less likely to make a decision on their longer-term requirements. The ongoing global situation is limiting the amount of risk or exposure they are prepared to take. They are making decisions to buy at the latest possible moment. This urgency is adding to the volatility. We are relying on the one major destination for wool at the moment so this volatility is likely to continue. This is creating some opportunities for both buyers and sellers but this extreme volatility is making business decisions more complicated.

AWEX Eastern Indicator compared with 30/10/2020

Eastern Indicator

Close: 1188

Change in % +4.39%

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

Authentico Index Values

15 Micron

Close: 2672

Change in %:  +3.89

16 Micron

Close: 2247

Change in %: +2.46

17 Micron

Close: 1964

Change in %: +4.19

18 Micron

Close: 1702

Change in %: +2.41

19 Micron

Close: 1528

Change in %: +4.23

Authentico Indicator

Close: 1969

Change in %: +3.25

Forecast

AWTA test data figures for the period to end October were released this week. 11.4% less weight was tested when compared with July to October 2019. More noticeably a reduction of 32.5% in net weight of wool 16.5 micron and finer has been tested. That is a trend quite obvious to us on the show floor. Overall, 19.5 micron and finer is down 19.2% when compared to the same period last season. (source AWTA).

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 19                      8520                        8183                   4.0%

South                     M 19                     16674                      15035                   9.8%

West                       F 19                      6918                         6050                  12.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 20                        T / W                        9016

South                      M 20                       T / W                       22293

West                        F 20                        T / W                       10660

 

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