AUSTRALIAN WEEKLY MARKET REPORT

Comment

Finally, a more positive market tone. Client bids under the market were being rejected by the exporters and processors leading into the auction as supply tightened further. Growers have shown a reluctance to accept prices in a dramatically falling market leaving less than 20,000 bales sold for the week. This led to a more cautious trading approach from the large exporters. There was enough positive sentiment around prior to the sale. Most exporters of the belief that prices, if not at the bottom, were very close. This was on the basis of more interest and bids closer to spot market prices leading into the sale.

The selection of fine wool was better this week and this has helped the overall averages, including our Authentico Index’s. There was more interest from the Italian sector on 18.0 micron and finer with better style and specification types attracting strong competition. Of particular strength again this week was the 16.0-micron range. Many of the better New England region clips in this range are also NM and this is obviously attracting more attention from Europe. This is encouraging but worth noting that the current 16.0 micron levels are approximately 40% lower than end August 2018. The Authentico Indicator was 1.68% higher this week, primarily as a result of the better 16.0 micron result. 16.0 is not included in the AWEX EMI.

AWEX Eastern Indicator compared with 30/08/2019

Eastern Indicator

Close: 1365

Change in % -0.73

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

Authentico Index Values

15 Micron

Close: 2445

Change in %: +0.58

16 Micron

Close: 2216

Change in %: +4.63

17 Micron

Close: 2055

Change in %: +2.39

18 Micron

Close: 1953

Change in %: +1.09

19 Micron

Close: 1727

Change in %: -4.27

Authentico Indicator

Close: 2063

Change in %: +1.68

Forecast

28,000 bales rostered for sale next week. There is grower held bales in store waiting for a clearer market trend. Despite this, the Sydney sale is restricted to a one-day sale on Wednesday. With the benchmark AWEX EMI improving in US currency this week, we hope that this gives the market some confidence to return at these reduced levels. Ultimately, it’s a matter of confidence. No doubt demand is soft but consumption of wool will continue.

Auction offering – current week

Selling Centres for week 10

Market          Sale          Offered             Sold       Passed In

North                    S 10                      7039                         5990                 14.9%

South                   M 10                     11619                        10529                  9.4%

West                     F 10                       3036                         2675                  11.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 11                        W                                6289

South                      M 11                       W-T                           16237

West                        F 11                        W-T                             5397

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Another extraordinary market reaction this week. While the new level of price is concerning enough, the direction it’s taken to arrive at this point has been extreme. Surely the appetite for wool has not changed that much in such a short period. Confusion is wide spread and confidence within the market is low and not until we get to a level that extracts more widespread interest will we see a reaction. Reports are that there is business but while the market falls, the next level is always lower. How long can this last? All markets react strongly after up and down corrections and we expect this to be no different. But when and from what level? Industry participants with some necessity for wool will be monitoring the next move very carefully.

Crossbred types appear in favour and only minor changes were noted from 26.0 / 32.0 micron.

AWEX Eastern Indicator compared with 23/08/2019

Eastern Indicator

Close: 1375

Change in % -8.15

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

Authentico Index Values

15 Micron

Close: 2431

Change in %: +0.45

16 Micron

Close: 2118

Change in %: -1.44

17 Micron

Close: 2007

Change in %: -3.97

18 Micron

Close: 1932

Change in %: -4.92

19 Micron

Close: 1804

Change in %: -5.85

Authentico Indicator

Close: 2029

Change in %: -3.38

Forecast

We’ll try to focus on the positives from a negative sale week. 15.0/16.0 micron were much less affected than the broader Chinese qualities. This was a superfine sale in Sydney and the result was positive. Of particular note was the market for non mulesed types. Our own Authentico Index was only 3.38% down for the week compared to an AWEX EMI which fell 8.15%. Our index is influenced by the performance of the finer micron (15.0 and 16.0) types that are important to our clients. The AWEX EMI includes wool down to 16.5 micron average only. We hope that this new Indicator and our Authentico indexes are of value to the industry.

Auction offering – current week

Selling Centres for week 09

Market          Sale          Offered             Sold       Passed In

North                    S 09                      6951                         4801                 30.9%

South                   M 09                     11453                        8200                28.4%

West                     F 09                       6891                         3854                44.1%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 10                        W-T                           8885

South                      M 10                       W-T                           15718

West                        F 10                        W                               4458

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Some interest late last week, albeit below the closing level, was enough to stimulate more widespread buyer support at the new level. It was a significantly better market tone in the sale room. Prices did however ease further as buyers search for a level in which they can sell and global market and political uncertainties ensure a lack of overall confidence. Still, it was a much better result than the past two weeks.

AWEX Eastern Indicator compared with 16/08/2019

Eastern Indicator

Close: 1497

Change in % -1.06%

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

Authentico Index Values

15 Micron

Close: 2420

Change in %: -0.08

16 Micron

Close: 2149

Change in %: -2.8

17 Micron

Close: 2090

Change in %: -2.9

18 Micron

Close: 2032

Change in %: -2.96

19 Micron

Close: 1916

Change in %: -4.49

Authentico Indicator

Close: 2100

Change in %: -2.28

Forecast

We have today published for the first time our new Authentico Index values and the Authentico Indicator. We’re very pleased to provide the first index values based on a sustainable quality scheme. We’d like to thank our committed grower supporters for joining the Authentico program and we’re positive that this initiative will give our clients and our grower partners some meaningful values and an indicator that matches market and consumer expectations.

Auction offering – current week

Selling Centres for week 08

Market          Sale          Offered             Sold       Passed In

North                    S 08                      9430                        8096                 14.1%

South                   M 08                     17062                       14120                 17.2%

West                     F 08                       no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 09                        W-T                           8158

South                      M 09                       W-T                           14778

West                        F 09                        W-T                           10110

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Further instability on global economic issues has eroded confidence from the wool market that has until now recorded one of the more positive periods in the last few years in our history. Since the peak of the EMI exactly one year ago (16/08/18), the benchmark indicator has fallen 28.5%. In USD terms the peak was in June 2018 and it’s now 33.6% lower. The fall in the EMI this week alone was just under 10%. In comparison our pool of non mulesed types indicates that these wools were again much less affected and closed around 2.9% cheaper on average. 15.0/16.0 micron and the better 17.0/18.5 types were again well supported by a different bench of buyers.

AWEX Eastern Indicator compared with 09/08/2019

Eastern Indicator

Close: 1513

Change in % -9.7%

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

Schneider Indicators

The Schneider Indicators are currently being reviewed to provide index values that will better reflect our evolving business. Details and launch in coming weeks. Our apologies to those who rely on these values for market information.

15 Micron

Close:

Change in %:

16 Micron

Close:

Change in %:

17 Micron

Close:

Change in %:

18 Micron

Close:

Change in %:

19 Micron

Close:

Change in %:

Forecast

A fall of this magnitude is significant and must raise further confusion amongst our customers. We can’t underestimate the level of pessimism coming from the Chinese market. This will however, create opportunities for others and considering the correction in price is as great since the peak as we mentioned earlier in this report, this new level of price will encourage some serious considerations. Little has changed fundamentally. We remain very confident for wool as a textile fibre and supply will continue to fall in Australia with the impact of the drought continuing to drive production downwards. Superfine wool clips are coming in earlier than usual and this will impact on supply later this calendar year.

Auction offering – current week

Selling Centres for week 07

Market          Sale          Offered             Sold       Passed In

North                    S 07                      13052                       8548                34.5%

South                   M 07                      15442                       10797              30.1%

West                     F 07                        6929                         3698              46.6%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                        T-W                           11194

South                      M 08                       T-W                           22502

West                        F 08                        no sale

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The global financial and trade situation is causing enormous uncertainty across all markets and wool has not been immune from this global economic story. Our reliance on China is well known. Chinese trade activity has certainly been affected and the major wool buyers were notably absent this week. There did seem to be a little more interest late in the sale Thursday but this didn’t ease the negative sentiment that had dominated the opening sale. 16.0 micron was least affected and even closed fully firm yesterday. It was the standard Chinese types 19.0 to 21.5 micron that lacked the usual competition. 29% of the total national offering was passed in.

AWEX Eastern Indicator compared with 12/07/2019

Eastern Indicator

Close: 1676

Change in % -4.45%

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

Schneider Indicators

The Schneider Indicators are currently being reviewed to provide index values that will better reflect our evolving business. Details and launch in coming weeks. Our apologies to those who rely on these values for market information.

15 Micron

Close:

Change in %:

16 Micron

Close:

Change in %:

17 Micron

Close:

Change in %:

18 Micron

Close:

Change in %:

19 Micron

Close:

Change in %:

Forecast

Very few are able to comment on the non mulesed market like we can. G Schneider Australia tends to dominate the offering of NM certified wool from 18.5 to 20.5 micron. This week our prices for NM wool around 19.0 /20.0 micron were only 2% down on the previous sale in July. This compares with an AWEX MPG value for 19.0 micron which was closer to 6% down. Clearly NM wool is selling in a different market and attracting a wider range of buyer interest who are influenced by longer term delivery and supply chain relationships.

Auction offering – current week

Selling Centres for week 07

Market          Sale          Offered             Sold       Passed In

North                    S 07                      13059                       10490              19.7%

South                   M 07                      21125                        15726               25.6%

West                     F 07                        7359                          3425                53.5%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 08                        W-T                          13984

South                      M 08                       W-T                          21231

West                        F 08                        W-T                           8388

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Sales have concluded for the 2018/2019 season on a relatively poor tone, albeit with prices still at reasonably good levels for wool production. The market this season has taught us that nothing is for certain. Chinese demand changed from fine wool to crossbreds very quickly and then the market appetite for wool altogether changed quite suddenly in recent weeks. The focus on non mulesed wool has improved dramatically, almost to a point that NM certified wool according to the National Wool Declaration is creating its own market and not following the trend of the other types on offer. There have been some very high-quality NM wool clips on offer that are still attracting widespread support from a different demand base and this is protecting those types more than others, from the current market instability.

AWEX Eastern Indicator compared with 20/06/2019

Eastern Indicator

Close: 1715

Change in % -2.88%

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

Schneider Indicators compared with 20/06/2019

↓15 Micron

Close: 2,403

Change in %: -2.70%

↓16 Micron

Close: 2,137

Change in %: -3.23%

↓17 Micron

Close:  2,159

Change in %: -0.46%

↓18 Micron

Close: 2,055

Change in %: -0.39%

↓19 Micron

Close: 2,047

Change in %: -2.39%%

 

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

The ups and downs of this season must be a warning to wool producers that they should be looking to align themselves as much as possible with their customers demands. The interest in relationships and traceability back to farm is increasing.

The current market trend seems more a global issue and not focused only on wool. Consumer confidence as a result of political positioning is affecting business confidence and the attitude towards investment and risk. This is no doubt affecting wool that has a long supply chain and a very high level of investment for all involved. Two weeks of sales remain before our three-week mid-year recess.

Auction offering – current week

Selling Centres for week

Market          Sale          Offered             Sold       Passed In

North                    S 52                      7859                          6526                 17.0%

South                   M 52                     14995                        12513                 16.6%

West                     F 52                        6313                          4293                 32.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 01                        W-T                          13608

South                      M 01                       W-T                          12127

West                        F 01                        W-T                           8769

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

When we have exceptionally small national quantities, the market is often neglected and this was the case this week. Not only were the volumes small (19,000 bales offered), the selection was again very poor. A large percentage of very low yielding, drought affected types. These wools are not only inferior in quality, they are more expensive to transport with less clean weight per bale and processing tariffs on lower yielding types are higher. The range of price between microns is now small with little discount down to 21.5 micron. This should help to limit further downside on the fine types and it was more noticeable on Thursday that the level of interest had improved at this lower basis. This however has unfortunately been the trend in recent weeks. The opening day lower, the second day firm.

AWEX Eastern Indicator compared with 14/06/2019

Eastern Indicator

Close: 1766

Change in % -3.13%

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

Schneider Indicators compared with 14/06/2019

↓15 Micron

Close: 2,468

Change in %: -1.05%

↓16 Micron

Close: 2,206

Change in %: -2.13%

↓17 Micron

Close:  2,169

Change in %: -0.32%

↓18 Micron

Close: 2,063

Change in %: -2.62%

↑19 Micron

Close: 2,096

Change in %: +1.34%

 

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

The wool prices in USD must now appear much more attractive. The AWEX EMI in USD terms is now at the lowest level since October 2017. We know how limited supply will be in the next season, the lowest in almost 100 years. All we need is for a little more confidence to return to the market. Buyers and traders are also reluctant to sell too far forward with concerns over supply and cash flow must be restricting many participants. Of increasing concern to Australian wool producers must be the appetite of our clients to source a lot more merino wool from other country origins now when compared to a few years ago. There is no doubt that this is a mulesing issue but we are also seeing a push from global brands on environmental standards and accountability.

Auction offering – current week

Selling Centres for week

Market          Sale          Offered             Sold       Passed In

North                    S 51                      8098                          7123                 12.0%

South                   M 51                     10974                          9511                 13.3%

West                     F 51                      no sale

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 52                        W-T                          8073

South                      M 52                       W-T                         15573

West                        F 52                        W-T                          7226

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Demand slowed again this week as the small offering as well as the still drought affected wools are having an impact. With a large percentage of the offering having poor spec and very low yield, exporters are finding these types harder to place orders. These poorest style wools saw the largest loss over the week. Growers were very resistant to the fall in prices with 21.3% of the entire offering passed in. The better spec and yielding wools were less affected, whilst those with best style were barely affected as a real gap has begun to emerge between quality.

AWEX Eastern Indicator compared with 07/06/2019

Eastern Indicator

Close: 1823

Change in % -2.20%

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

Schneider Indicators compared with 07/06/2019

↓15 Micron

Close: 2,494

Change in %: -1.84%

↓16 Micron

Close: 2,253

Change in %: -2.35%

↓17 Micron

Close:  2,176

Change in %: -2.48%

↓18 Micron

Close: 2,117

Change in %: -2.36%

↓19 Micron

Close: 2,068

Change in %: -1.06%

 

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

Sales will take a break once again this week in Fremantle seeing the national offering drop back again to just 19,745.

As the drought continues across much of NSW and QLD the generally poor offering will continue for the foreseeable future. There is a generally small national offering forecast for the next couple of weeks leading into the three week recess. Hopefully this can stimulate the market a little as buyers need to complete orders and look to have enough wool to keep the machines running through the recess.

Auction offering – current week

Selling Centres for week

Market          Sale          Offered             Sold       Passed In

North                    S 50                      7923                          6841                  13.7%

South                   M 50                     14256                        11757                 17.5%

West                     F 50                      5961                          3562                  25.0%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 50                        W-T                          8327

South                      M 50                       W-T                          11418

West                        No Sale

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Currency markets are fluctuating a little and this is impacting on market confidence. The AWEX EMI was down just 7 USC (0.5%) for the week but 1.2% lower in local currency. The smaller volume offering, just 21,000 bales nationally, wouldn’t have helped. And furthermore, 15% of those were passed in, resulting in just 18,000 bales being sold to the trade for the week. Topmakers seem to be taking the most advantage of the more subdued tone in the auction room. The small offering of better yielding and performing types were largely unchanged but all other descriptions were irregular.

AWEX Eastern Indicator compared with 31/05/2019

Eastern Indicator

Close: 1864

Change in % -1.22%

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

Schneider Indicators compared with 31/05/2019

↑15 Micron

Close: 2,540

Change in %: +0.24%

↓16 Micron

Close: 2,306

Change in %: -1.86%

↓17 Micron

Close:  2,230

Change in %: -1.75%

↓18 Micron

Close: 2,167

Change in %: -0.32%

↓19 Micron

Close: 2,090

Change in %: -2.01%

 

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

Sales in Fremantle will be on again next week after a one-week break. It’s a very quiet time of the year in Western Australia and each year there are a few weeks during this period without sales.

The drought continues in parts of NSW. Lambing numbers were significantly affected last year and young weaner weathers are being sold as we move into winter without sufficient grass cover. This will impact further on wool production this year, particularly in the New England region where the Italian market often relies on heavily for volume of quality types.

Auction offering – current week

Selling Centres for week 49

Market          Sale          Offered             Sold       Passed In

North                    S 49                      9495                          8162                  14.0%

South                   M 49                     12249                        10218                 16.6%

West                     F 49                      no sale

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 50                        W-T                          8242

South                     M 50                       W-T                          15136

West                       F 50                        W-T                            6611

 

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

What a clear difference the one week can make. Buyer confidence returned and it didn’t take much to push the AWEX EMI nearly 3% dearer. Less than 30,000 bales were offered. Passed in rates were much lower as growers are more comfortable selling into a strong market. There was positive news regarding the sale of tops and greasy wool coming out of China late last week and the expectations of a dearer market came to fruition. It’s clear what difference just a little improvement in confidence can have when considering the volume and type of wool on offer. The Chinese focus was on 19.5 and broader plus the most inferior types. The overall price gap between best, worst, finest and broadest, is now at the smallest range for the season to date. As is often the case when the market is changing, the cardings move first, locks were as much as 8% dearer.

AWEX Eastern Indicator compared with 24/05/2019

Eastern Indicator

Close: 1887

Change in % +2.95%

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

Schneider Indicators compared with 24/05/2019

15 Micron

Close: 2,534

Change in %: -0.2%

↑16 Micron

Close: 2,349

Change in %: +0.51%

↑17 Micron

Close:  2,269

Change in %: +1.63%

↑18 Micron

Close: 2,174

Change in %: +0.51%

↑19 Micron

Close: 2,132

Change in %: +0.94%

 

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

Growers are more likely to sell now. Historically an improvement in market confidence like this week would flush out volume for sale, but still just 23,000 bales are currently rostered for each of the next two weeks and less than 20,000 bales in week 51. No doubt, the first sale in July will be a larger one, the first of the new financial year, but we also have the three-week recess to consider in July. Anyone who needs wool either for prompt demand or to feed machinery will have little option but to buy. To wait would seem a risky proposition with the market volatility seen in recent times.

Auction offering – current week

Selling Centres for week 48

Market          Sale          Offered             Sold       Passed In

North                    S 48                      7864                          7459                  5.2%

South                   M 48                     16418                        14972                  8.8%

West                     F 48                      3991                           3470                  13.1%

 

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 49                        W-T                          10391

South                     M 49                       W-T                           13228

West                       F 49                      no sale

 

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