AUSTRALIAN WEEKLY MARKET REPORT

Comment

We’ve now been selling around 30,000 bales per week for a few weeks with lower passed in rates. A few months ago, the market could only manage 20,000 per week. This is a much stronger market performance. Some would have expected a softening tone this week but prices were dearer from the outset. The difference this week is that all types and descriptions were dearer. 20.0 micron and broader settled a little towards the close on Wednesday but finer merino’s, crossbreds and cardings all maintained the levels to the close.

The performance of the superfine sector, particularly 17.5 micron and finer, has been a stand out. Noting that we are currently in the peak period for annual supply and beyond November availability is expected to drop. The exception being a couple of opportunities in February 2021.

AWEX Eastern Indicator compared with 02/10/2020

Eastern Indicator

Close: 1022

Change in % +2.61

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

Authentico Index Values

15 Micron

Close: 2372

Change in %:  +2.42

16 Micron

Close: 1973

Change in %: +0.92

17 Micron

Close: 1735

Change in %: +0.52

18 Micron

Close: 1532

Change in %: +2.06

19 Micron

Close: 1331

Change in %: +2.31

Authentico Indicator

Close: 1745

Change in %: +1.39

Forecast

Grower held stocks remain at reasonably high levels but clearly growers are prepared to hold wool for better market conditions. Seasonal factors are favourable. Livestock prices, while settling are still high, and crop yields will be very good. Both livestock and crops generally need to be sold when ready. This provides cash flow to woolgrowers and allows them to be hold wool in store. A large percentage of the wool held in store is drought affected with low vegetable matter (VM). This could well be an advantage as the VM of the clip is expected to increase into our summer and through to autumn 2021.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 15                      7365                         7079                  3.9%

South                     M 15                     15508                      14583                 6.0%

West                       F 15                       5473                         5200                 5.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 16                        T / W                         7971

South                      M 16                       T / W                       16828

West                        F 16                          W                             5669

 

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