AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

It has been a very long time since we have seen such confusion in the wool market. When we think the market is going up it goes down and vice versa. Obviously world economic and political situations are affecting commodity prices in general and currencies which affect global consumer confidence. Here at home we must focus on the wool market which has been affected by a recent slowing in demand, quality issues related to the selection as well as shipping issues in the Gulf of Aden and the Red Sea. Interesting to note that even in an oversupply of poor quality wool the market remains only slightly easier which is due to grower resistance as they withdraw wool from sale and maintain reserves to support their hedging philosophy. A small offering of high quality certified wool is still maintaining healthy support as traditionally this is not the usual time for high quality superfine to sell. Demand in China seems to have slowed as we enter the week of LUNAR New Year celebrations, Europe remains quiet as expected for this time of the season, with India and Japan remaining slow and steady.

AWEX Eastern Indicator compared with 26/01/24

Eastern Indicator

Close: 1171

Change in % -0.10

Authentico Index Values

15 Micron

Close: 3307

Change in %: -2.0

16 Micron

Close: 2409

Change in %: -0.50

17 Micron

Close: 2067

Change in %: +1.80

18 Micron

Close: 1783

Change in %: -1.70

19 Micron

Close: 1613

Change in %: -0.80

Authentico Indicator

Close: 2129

Change in %: -0.40

Forecast

A slightly larger offering nationally next week with 44,000 bales available. Week 32 is a designated superfine wool sale in Sydney which will hopefully attract healthy competition from all sectors. Chinese indent buyers still remain consistent acquiring volume across a wide range of types. Merino and Crossbred oddments seem to have support from traders which will hopefully help keep the market in positive territory.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 31	8431	7843	7.0%
South	M 31	16454	14964	9.1%
West	F 31	8014	6823	14.9%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 32	T / W	11971
South	M 32	T / W	22793
West	F 32	T / W	9504

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