AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

The performance in the luxury end of the market, the sub 15.0 micron range, is well worth recognising. When compared to the same sale in November 2022, the 14.5 micron average price for good fleece wool is currently 5% higher in 2023. This, despite the general market negativity, has been quite a remarkable performance. Supply would also appear to be better this year, with a greater offering of superior types. Prices for these wools has remained positive throughout the year and a reflection of strong demand in the luxury market. As a comparison, the AWEX EMI is lower by 10% in AUD and 11% in USD compared to the corresponding period in 2022. The Authentico INDEX is now at the lowest level in nearly three years, since December 2020.

AWEX Eastern Indicator compared with 27/10/23

Eastern Indicator

Close: 1129

Change in % -0.8

Authentico Index Values

15 Micron

Close: 3365

Change in %: +0.4

16 Micron

Close: 2298

Change in %: -0.8

17 Micron

Close: 1829

Change in %: -0.05

18 Micron

Close: 1640

Change in %: +0.9

19 Micron

Close: 1517

Change in %: -0.8

Authentico Indicator

Close: 1989

Change in %: -0.1

Forecast

Supply of the very best fine wools will soon run out for another season. The period in which supply of the best types is available, seems to be shorter and shorter each year. The obvious difference this year, is that growers are selling. The are meeting the market and opting to sell, rather than to hold wool. Cash flow challenges as a result of lower commodity prices are forcing this issue. In terms of superfine wool, this will impact negatively on supply in the first half of 2024.

Auction sales revert to Wednesday and Thursday next week. It’s just for the one week with a public holiday in Victoria falling on Tuesday.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 18	13099	12023	8.2%
South	M 18	21689	19606	9.6%
West	F 18	7962	7345	7.7%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 19	W / T	13173
South	M 19	W / T	24567
West	F 19	W / T	7506

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