AUSTRALIAN WEEKLY MARKET REPORT

Comment

There was little change overall in the general market but we certainly noticed fewer extreme prices in the superior fine sector. This is largely due to the higher percentage of RWS certified wool in the offering last week compered to this week. This resulted in less extreme prices on average for the best fine wool. Readers will notice a drop in the Authentico indicators which, due to demand and client interest, do include RWS certified wool clips. As we move to the end of the fine wool season, the selection will vary from week to week and this will impact on average prices. Next week we will have the last designated superfine sale of the season rostered for Sydney.

AWEX Eastern Indicator compared with 18/02/2022

Eastern Indicator

Close: 1421

Change in % +0.07

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

Authentico Index Values

15 Micron

Close: 3809

Change in %: -5.5

16 Micron

Close: 3232

Change in %: -4.1

17 Micron

Close: 2840

Change in %: -2.2

18 Micron

Close: 2370

Change in %: -3.4

19 Micron

Close: 1883

Change in %:  -5.5

Authentico Indicator

Close: 2779

Change in %: -3.6

Forecast

Despite compounding concerns amongst exporters regarding cash flow due to delayed shipments and generally large weekly quantities, the wool auction market remains keenly contested. Most exporters are impacted by a shortage of cash at the moment, yet a total of $64.05 M was sold to the trade this week. An enormous result under the circumstances. A few things could play out in coming weeks. Weekly quantities could reduce a little, cash flow concerns could ease with pending shipments freeing up some finance and, in the background, we have the escalating issue in Eastern Europe that could impact on consumer confidence and global currency markets. All factors that can and will impact on competition for Australian wool.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 34                  12675                   11200                 11.6%

South                     M 34                 23320                  21233                  8.9%

West                       F 34                   8983                     7260                  19.2%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 35                    T / W                     14923

South                     M 35                 T  / W / T                26295

West                       F 35                     T / W                     10077

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Week 33 showed how resilient the market can be when we have the biggest offering we have seen for twelve months coupled with the best offering of high quality superfine merino wool this season. Growers backed their judgement this week and were rewarded with outstanding  prices and competition especially for RWS, Authentico, NM & CM accredited wools topping the sale. The large offering provided good opportunities for exporters to purchase volume of high quality fine wool to meet the demands of the market. Chinese specifications were a little irregular, however bounced to finish strongly at the close of sales in Melbourne yesterday. RWS crossbred wool also attracting incentives from 25 to 32 micron at around 50ac clean above the spot market. We would like to thank our dedicated growers and brokers for offering such an outstanding selection this week.

AWEX Eastern Indicator compared with 11/02/2022

Eastern Indicator

Close: 1420

Change in % -0.10

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

Authentico Index Values

15 Micron

Close: 4030

Change in %: +4.30

16 Micron

Close: 3373

Change in %: +2.30

17 Micron

Close: 2905

Change in %: +3.10

18 Micron

Close: 2454

Change in %: +3.50

19 Micron

Close: 1993

Change in %:  +6.20

Authentico Indicator

Close: 2885

Change in %: +3.40

Forecast

Shipping delays continue to hold a cloud of uncertainty over the market. As we have seen this week demand is healthy, offered volumes are good despite the shearing delays due to covid and weather restrictions and textile exports out of China continue to improve which leads us to believe the sustainability of the market achievable in the coming weeks.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 33                  11123                   10273                  7.6%

South                     M 33                  28692                  25669                10.5%

West                       F 33                   9175                      8318                    9.3%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 34                    T / W                     12880

South                     M 34                 T  / W / T                25973

West                       F 34                     T / W                     11289

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Exporters continue to face difficulties with shipping schedules. Delays from the dump, through the shipping terminals and a lack of space on the available ships are all impacting on the wool supply chain. There is no doubt that covid related issues are impacting on staff levels. Customers are agitated and exporters are facing delays in payment with most contracts reliant on letter of credit (LC) terms and shipment dates. This is limiting the cash available to trade the large volume on offer. At the same time, we’ve seen a spike in supply with next week’s Melbourne sale listed for 32,000 bales. It’s unlikely that this volume will flow onto the market following the correction this week, but still enough to put some doubt in customers minds in the short term. With the exception of the best fine wool which closed firm, all other types and descriptions eased over the week. The Authentico indicator, focusing on farms who no longer mules, was 0.5% easier and performed better than the overall market (AWEX EMI down 1.9%). We’ve often said that the mulesing status can be a good insurance policy for wool growers. The NM/CM clips are not as affected in a falling market when compared to the general supply.

AWEX Eastern Indicator compared with 04/02/2022

Eastern Indicator

Close: 1422

Change in % -1.86

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

Authentico Index Values

15 Micron

Close: 3857

Change in %: +1.77

16 Micron

Close: 3294

Change in %: +2.14

17 Micron

Close: 2815

Change in %: -1.23

18 Micron

Close: 2367

Change in %: -1.58

19 Micron

Close: 1870

Change in %:  -4.1

Authentico Indicator

Close: 2786

Change in %: -0.46

Forecast

The sharp increase in supply next week has in some way been impacted by previous delays in shearing. AWTA test figures for January were low as a result of wet weather. This wool is now flowing onto the market as previously held up shearing is now completed.

The staple length of the Australian clip is certainly becoming a major issue for European interests who have generally required a lower co-efficient in variation of length (in top). The push towards a plainer type of sheep, the tremendous season and delays in shearing due to the weather, are all factors resulting in a general increase in the staple length of our clip. Fleece lines well in excess of 100mm greasy staple length are now more common than not, even for superfine wool.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 32                  11933                  10236                  14.2%

South                     M 32                 21706                  18866                  13.1%

West                       F 32                   12720                  9203                  27.6%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 33                    T / W                     12464

South                     M 33                 T  / W / T                32640

West                       F 33                     T / W                     10698

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was another very positive week for the wool market. All types and descriptions were dearer from the start and continued. There is continued interest in European types, particularly NM and CM lines of wool. This is a good sign and helping to sustain the strength of the fine wool market. There is no doubt less fine wool available as a result of the outstanding season we’re having. Chinese interests were active on standard types, pushing them dearer as well. Shorter knitting types and cardings were also keenly sought after. Add to this, the ever increasing volume of RWS accredited wool offered by The Schneider Groups Authentico RWS Farm Group scope certificate which is now 94 farms strong, giving our brand partners a greater access to Australian and New Zealand farmers wool production.

AWEX Eastern Indicator compared with 21/01/2021

Eastern Indicator

Close: 1449

Change in % +3.0

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

Authentico Index Values

15 Micron

Close: 3790

Change in %: -0.80

16 Micron

Close: 3225

Change in %: +1.25

17 Micron

Close: 2850

Change in %: +2.90

18 Micron

Close: 2405

Change in %: +3.40

19 Micron

Close: 1950

Change in %:  +2.25

Authentico Indicator

Close: 2799

Change in %: +2.50

Forecast

Despite exporters still having some difficulties with shipping schedules, delays at the wool dumps (packers) and slow opening of finance lines as a result, the market continues to edge higher. Competition was widespread this week, probably more so than in recent weeks. This is an encouraging sign for the market. Vegetable matter will almost certainly start to increase from March onwards so the availability of better fleece wool with 1.0 VM will be more limited as we move towards July. We are on the cusp of the final volumes of very high quality fine wool being offered in the coming weeks taking advantage of the recent spike in prices driven by good demand from Europe, China, Japan, and India will surely attract keen competition as exporters secure volume.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 31                 9101                  8741                     4%

South                     M 31                21724                  20085                 7.5%

West                       F 31                 9666                  8889                   8.0%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 32                     W / T                     13313

South                     M 32                    W / T                     22679

West                       F 32                     W / T                      12282

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

General market sentiment was tending positive leading into this week’s sale. The result was better than expected but a reflection of continued demand for good specification fine wool in particular. At the same time, the AUD was lower against the USD following nervousness in the share markets. The EMI in USD value is still ranging in the 970/1000 level and this is ensuring solid support from the Chinese market. The lack of good quality fine wool available with NM or CM specification is ensuring that those types remain keenly sought after with Italian and Indian interests most interested.

AWEX Eastern Indicator compared with 21/01/2021

Eastern Indicator

Close: 1407

Change in % +1.08

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

Authentico Index Values

15 Micron

Close: 3822

Change in %: -1.92

16 Micron

Close: 3184

Change in %: +0.95

17 Micron

Close: 2767

Change in %: +2.41

18 Micron

Close: 2347

Change in %: +0.21

19 Micron

Close: 1904

Change in %:  unchanged

Authentico Indicator

Close: 2724

Change in %: +2.83

Forecast

Sales are to be held on Wednesday and Thursday next week with auctions delayed for 1 day in recognition of the Chinese New Year. Fluctuations on the currency market, if continuing up and down, could well play a role in the market performance next week. The solid rise on Thursday might be a deterrent for new business in the short term back a general lack of volume available should ensure there is enough competition to maintain prices around this level.

We are expecting a better supply of RWS certified wool on the market in the next few weeks. Quality is expected to be variable. Prices for certified wool in recent weeks, particularly RWS certified, have greatly exceeded market expectations yet we continue to see global demand for certified wool grow rapidly. Not just for better weaving types but for knitting and all carding types as well. We continue to play our role in the growth of RWS supply through offering RWS certification for audited growers via our Authentico farm group. Interested growers should speak to their broker to discuss their eligibility.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 30                 10569                  9572                  9.4%

South                     M 30                20916                  19279                 7.8%

West                       F 30                 11309                  10207                 9.7%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 31                     W / T                     8892

South                     M 31                    W / T                     23195

West                       F 31                     W / T                      9703

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The strong auction market last week was well maintained for the best fine types, especially those wools certified with a NM or CM mulesing status. Good results were achieved on Tuesday but the market settled on Wednesday before remaining generally firm on Thursday. The highlight was the better specification fine wool types. They were keenly sought after and tracked dearer in the 18.5 micron and finer range. This trend was similar for both best fleece and best light fault skirtings. Wool being sourced from farms who no longer mules (NM and CM) continue to be favored, especially from European interests. These wools continued dearer to the close of sale. Following the better-than-expected result last week, the large volume of average specification Chinese quality types were a little irregular through the middle of the week before firming in a smaller national offering (Melbourne only) on Thursday. Some sections of the trade were keener than others and good performing types were the focus. The Australia dollar is fluctuating a little from day to day against the USD and having a small influence on the market. The good season has certainly impacted on the micron profile of the clip. Most clips are broader than recent years and this is encouraging the strong results in the fine and superfine sector.

AWEX Eastern Indicator compared with 14/01/2021

Eastern Indicator

Close: 1392

Change in % +0.22

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

Authentico Index Values

15 Micron

Close: 3897

Change in %: +2.63

16 Micron

Close: 3154

Change in %: +2.90

17 Micron

Close: 2702

Change in %: +2.27

18 Micron

Close: 2342

Change in %: +3.9

19 Micron

Close: 1904

Change in %: +1.33

Authentico Indicator

Close: 2724

Change in %: +2.83

Forecast

Sales will be held on Tuesday and Thursday next week with our national holiday, Australia Day, falling on Wednesday. The Chinese New Year celebrations will start a week later on 1st February. We see little change to the market in the short term with only minor adjustments based on selection and currency from day to day.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North              S 29           10496        9601          8.5%

South               M 29           26119       23248        11.0%

West                F 29            9641        8536         11.5%

Auction offering – next week

Market          Sale          Sale days     Volume

North               S 30            T / T 10656

South               M 30          T / T 22283

West                F 30            T / T 13551

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

Auction sales have started 2022 in a very positive way. We shouldn’t be so surprised. In the past 13 years, since January 2010, the market has opened strongly in January with the exception being January 2014 and January 2015 when, in both cases, the market was very firm. We are not sure of the reasons for this but it might have some relevance to the pending Chinese New Year period and it’s a generally good time of the year for demand overall. There is no doubt some optimism coming from Europe but also a level of caution to start the year from some sectors in China. Some have commented that the market was perhaps a little stronger in 2021 than it should have been, all things considered. No doubt though, since 2010 we have continued to enter into significantly different supply and demand circumstances. Supply is dictating terms more than the demand. We noticed that this week in the auction. For quality wools, if you wanted to buy a particular lot, competition was keen from the outset. There is less quality fine wool on offer than we would normally expect at this time of the year as well.

AWEX Eastern Indicator compared with 10/12/2021

Eastern Indicator

Close: 1389

Change in % +2.28

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

Authentico Index Values

15 Micron

Close: 3797

Change in %: unchanged (minimal offering)

16 Micron

Close: 3065

Change in %: +0.49

17 Micron

Close: 2642

Change in %: -0.15

18 Micron

Close: 2254

Change in %: +1.21

19 Micron

Close: 1879

Change in %: +2.40

Authentico Indicator

Close: 2649

Change in %: +0.53

Forecast

According to the latest Australian Bureau of Statistics (ABS) report, wool exports from July to the end of November 2021 are 45% higher overall compared to 2020. These are extraordinary figures with big percentage increases shown in exports to Italy (+355%), India (+125%), Czech Republic (+57%) and Egypt (+244%). Even exports to China are 35% up on much greater volume. Quite a performance for the wool industry. Exactly how this will play out in terms of future supply, we are not sure. Wool was held on farm rather than sent to store at the start of 2020. We suspect that a good percentage of the merinos have since been sold and the bulk of the bales still in store are crossbred types.
The market increases this week might be just a little too fast, we’ll need to wait the weekend to see if there is any interest from the Chinese sector at this new basis.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North              S 28           12543        11749         6.3%

South               M 28           22180        20600        7.1%

West                F 28            9016        8209         9.0%

Auction offering – next week

Market          Sale          Sale days     Volume

North               S 29            T / W 10215

South               M 29          T / W / T 27311

West                F 29            T / W 9007

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The wool market closed for the recess period on a very positive tone with all sectors active. Europe has had a better than expected last quarter which signals encouraging times ahead for 2022. China has supported the wool market throughout what has been a difficult year and looks forward to a more prosperous 2022. RWS, NM & CM certified wool continues to attract healthy incentives giving growers confidence that providing the market with a greater volume for our international brand partners will create strong competition.

AWEX Eastern Indicator compared with 10/12/2021

Eastern Indicator

Close: 1358

Change in % -0.01

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

Authentico Index Values

15 Micron

Close: 3797

Change in %:  -1.60

16 Micron

Close: 3050

Change in %: -3.0

17 Micron

Close: 2646

Change in %: +1.00

18 Micron

Close: 2227

Change in %: -1.00

19 Micron

Close: 1835

Change in %: -2.00

Authentico Indicator

Close: 2635

Change in %: -1.00

Forecast

The wool market is in RECESS now for 3 weeks for a well earned rest in what has been a tumultuous first half of the season. Better than expected seasonal conditions have caused unprecedented delays with shearing and transport of wool to the market. We can only hope that 2022 delivers more prosperous times for all sectors of the industry.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North              S 24           11361       10070         11.4%

South               M 24           22477        19402        13.7%

West                F 24            7024       5793         17.5%

Auction offering – next week

Market          Sale          Sale days     Volume

North               S 25           RECESS

South               M 25          RECESS

West                F 25           RECESS

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The auction has performed strongly in the penultimate sale for 2021. Under the circumstance of shipping deadlines for a pre-Christmas shipment having now passed and a strengthening Australian dollar, the market could have struggled to maintain this week. But, as has been the case for some time now, the market continued to sell in a very positive tone. All types and descriptions were a little dearer.

AWEX Eastern Indicator compared with 26/11/2021

Eastern Indicator

Close: 1360

Change in % +1.04

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

Authentico Index Values

15 Micron

Close: 3852

Change in %:  +0.68

16 Micron

Close: 3137

Change in %: +0.87

17 Micron

Close: 2625

Change in %: -0.57

18 Micron

Close: 2252

Change in %: -0.44

19 Micron

Close: 1867

Change in %: +2.87

Authentico Indicator

Close: 2662

Change in %: +0.23

Forecast

42,000 bales are now catalogued for sale next week and expectations are that the market will continue around similar levels through to the close. With the EMI close to the 970 USD level, we expect demand from China to remain relatively stable next week before the three-week Christmas recess. Demand from Europe has also been consistent in recent weeks.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North              S 23           10275        9666         5.9%

South               M 23           20937        19588        6.4%

West                F 23            4861       4395         9.6%

Auction offering – next week

Market          Sale          Sale days     Volume

North               S 24           T / W        10949

South               M 24           T / W        23798

West                F 24           T / W        7289

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

AUSTRALIAN WEEKLY MARKET REPORT

Comment

The superfine wool market 15 to 18 micron traded in positive territory this week, with increases up to 3.5% above the previous week. 19 micron however went against the trend and lost 1% from the previous week. Clearly shows that exporters and processors are seeking quality wool particularly NM & CM status in a large selection of wool affected by very wet seasonal conditions. Most of the Chinese qualities attracted keen competition this week, also traded in positive territory with a lower A$ and the expectation of dumping and shipping delays over the xmas period.

AWEX Eastern Indicator compared with 26/11/2021

Eastern Indicator

Close: 1346

Change in % +0.50

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

Authentico Index Values

15 Micron

Close: 3826

Change in %:  +0.50

16 Micron

Close: 3110

Change in %: +2.0

17 Micron

Close: 2640

Change in %: +2.0

18 Micron

Close: 2262

Change in %: +3.5

19 Micron

Close: 1815

Change in %: -1.0

Authentico Indicator

Close: 2656

Change in %: +2.0

Forecast

Key indicators to look out for in the run up to the long break over xmas are that wool looks good value in USD terms with the indicator still sitting marginally below the 970 USC level and the EMI below 1350 should keep trades in the positive territory. Caution still remains with dumping and shipping delays as wool handlers wind down for the break generally closing from Christmas eve through to 10th January 2022. An over supply by brokers through this period could have a dampening affect on the market.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 22                     9451                  8806                 6.8%

South                     M 22                    22285                19462                12.7%

West                       F 22                     7841                   7348                  6.3%

Auction offering – next week

Market          Sale          Sale days     Volume

North                      S 23                      T / W                     10778

South                      M 23                     T / W                    23271

West                        F 23                      T / W                      7313

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