AUSTRALIAN WEEKLY MARKET REPORT

Comment

The penultimate sale for 2023 has ended very positively. All types and descriptions came under strong buying pressure adding on to gains recorded in the previous few weeks. The finer wools were those most keenly sought after. The Chinese market is favoring the wools 16.5 to 18.5 micron as they appear good value while the European market remains subdued. Topmakers and traders were challenging each other for volume and this competition increased as the sale progressed. Some types increased by as much as $1 per kg over the week.

AWEX Eastern Indicator compared with 01/12/23

Eastern Indicator

Close: 1177

Change in % +0.9

Authentico Index Values

15 Micron

Close: 3345

Change in %: +0.3

16 Micron

Close: 2354

Change in %: +0.2

17 Micron

Close: 1973

Change in %: +2.1

18 Micron

Close: 1764

Change in %: +2.0

19 Micron

Close: 1600

Change in %:  +1.7

Authentico Indicator

Close: 2086

Change in %: +1.3

Forecast

The selection of the finer micron types will deteriorate in the first half of 2024. If the European market shows any sign of improvement after Christmas, we expect that the fine wools will remain keenly sought after. Premiums for quality also typically increase as the selection of the best types deteriorates from March onwards. The offering is again quite large, around 50,000 bales, for the last sale and the selection is challenging. We’re seeing a wider variety of types and a greater volume of inferior wools than in recent weeks. There is a high percentage of low value crossbred types coming onto the market at the moment as well.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 23	10836	10209	5.8%
South	M 23	22906	21606	5.7%
West	F 23	8677	8107	6.6%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 24	T / W	12973
South	M 24	T / W / T	29550
West	F 24	T / W	8027

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