AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

There was stronger demand from the outset this week, with focus from the Chinese topmakers, Chinese indent orders and trading activity, all contributing to a more positive market. This optimism flowed onto Wednesday’s auction. The smaller offering of European specification lines was not as affected. With only limited availability at this time of the year, the market for the best types will fluctuate more than usual. The demand came predominantly from the Chinese sector for the more average types and focusing on 18.5 / 19.5 micron. More than a few local traders are now optimistic for a small recovery. The downside risk is certainly lower as we move from week to week. This will ensure that traders are less likely to sell at any discount to the spot market.

AWEX Eastern Indicator compared with 21/02/25

Eastern Indicator

Close: 1195

Change in % unchanged +0.9

Authentico Index Values

15 Micron

Close: 2879

Change in %: -0.07

16 Micron

Close: 2152

Change in %: +1.3

17 Micron

Close: 1933

Change in %: -2.0

18 Micron

Close: 1780

Change in %: -1.9

19 Micron

Close: 1692

Change in %: +1.8

Authentico Indicator

Close: 2001

Change in %: -0.8

Forecast

There are less than 35,000 bales currently rostered for sale next week. Following the positive close, this limited volume should help the market to continue in the current upward trend. The quality on offer is also variable, with limited higher quality clips available at this time of the season. Some expectations that supply will increase with a recovery in the market seem less likely. Many growers who are holding out, are looking for prices to improve much more in order to cover the increasing cost of wool production. If they are financially able to, they seem more prepared to wait.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 35	11592	11046	4.7%
South	M 35	21072	19667	6.7%
West	F 35	7128	6770	5.0%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S35	T / W	7629
South	M35	T / W	20288
West	F35	T / W	6780

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