AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

The Market struggled to gain momentum this week, with a flailing currency, commodity prices globally weakening, and slow demand. The shining light this week were the high quality certified wools which are still keenly sought from various sectors. Large Chinese topmakers still continue to support the market heavily, whilst the greasy traders are replenishing stocks to sell after the recent sell off post the Nanjing Wool Conference a few weeks ago. Growers who are prepared to stay the course with high quality certified wool will definitely be the beneficiaries of a separation in the market. Sub 15 micron still figure in vigorous competition achieving healthy price incentives. A lot of this activity has been spurred on by a shortage of cashmere coming out of Mongolia due to poor seasonal conditions and a slight increase in demand in Europe.

AWEX Eastern Indicator compared with 18/10/24

Eastern Indicator

Close: 1131

Change in % unchanged -0.6

Authentico Index Values

15 Micron

Close: 3178

Change in %: -0.9

16 Micron

Close: 2220

Change in %: +1.2

17 Micron

Close: 1868

Change in %: -2.0

18 Micron

Close: 1640

Change in %: -2.0

19 Micron

Close: 1599

Change in %: -0.7

Authentico Indicator

Close: 1989

Change in %: -0.8

Forecast

41,000 bales on offer next week which is an increase of approx. 9,000 bales will definitely test the market in this period of slow but steady demand. We are seeing levels of grower resistance as they hold for better market conditions. NZ wool selling in Melbourne will definitely put a strain on the 15/16.5 micron area. Hopefully some activity will present with the dollar skirting .6600 at the end of this week, just might spark some better trading opportunities.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 17	8423	7844	6.9%
South	M 17	19436	17611	9.4%
West	F 17	6601	6240	5.5%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S18	T / W	12889
South	M18	T / W	22132
West	F18	T / W	6514

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