AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

The market was softer this week with traders reporting sluggish demand in recent weeks. The positive take on the market, as reported by AWEX in their weekly market report, is that the EMI has closed at 1142 for the season. It’s 1.4% higher than the close 12 months ago (1126). The result is similar in USD with the value at 763 this week compared to 748 at the end of June 2023. A difference of 2%. Considering the general ongoing economic gloom, this should be considered a sound result over the twelve-month period. The challenge that is impacting on all sectors within the supply chain, are constantly rising costs. The ultrafine sector, 15.5 micron and finer, continues to perform well in limited supply.

AWEX Eastern Indicator compared with 21/06/24

Eastern Indicator

Close: 1142

Change in % -1.5

Authentico Index Values

15 Micron

Close: 3167

Change in %: +2.2

16 Micron

Close: 2147

Change in %: -1.8

17 Micron

Close: 1832

Change in %: -2.2

18 Micron

Close: 1670

Change in %: -2.4

19 Micron

Close: 1562

Change in %: -2.0

Authentico Indicator

Close: 1953

Change in %: -1.5

Forecast

The first sale of the new selling season will have less wool on offer than what has been offered in week 52. This is an unusual scenario. Traditionally, the first sale of the new season is quite large, with growers holding to sell wool in the new financial year. It’s been different this year, growers have been selling. Increased farm costs and interest rates, along with lower farm commodity prices, have resulted in the need for growers to sell wool earlier. The general global economic outlook would also have encouraged them to sell, rather than to hold and wait.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 52	11091	10311	7.0%
South	M 52	19510	16952	13.1%
West	F 52	6546	5598	14.5%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 01	T / W	12534
South	M 01	T / W	16833
West	F 01	T / W	7286

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