AUSTRALIAN WEEKLY MARKET REPORT

Comment

Prices in USD remained fairly flat this week while edging lower again in local values. Chinese demand, needed to support the general offering, is spasmodic at best and failing to provide the competition needed to steady the market. There is no clear indication from China, and this is encouraging the negative sentiment. The better specification types, in limited supply, continue to be more keenly sought after and we’ve noted in the auction some traders beginning to ‘pick up’ at these levels. 17.5 micron is a good example. The longer more average types were generally neglected on Tuesday but rebounded strongly on Wednesday. This would indicate that some traders do see value around current prices.

AWEX Eastern Indicator compared with 04/11/2022

Eastern Indicator

Close: 1241

Change in % -1.59

Authentico Index Values

15 Micron

Close: 3424

Change in %: +3.0

16 Micron

Close: 2711

Change in %: -2.22

17 Micron

Close: 2495

Change in %: +2.3

18 Micron

Close: 2067

Change in %: -2.9

19 Micron

Close: 1754

Change in %:  -1.68

Authentico Indicator

Close: 2429

Change in %: -0.25

Forecast

Supply is being restricted on two fronts. Growers are reluctant to offer wool at the moment while the market direction is heading in the wrong direction. And secondly, wool has been held up on farm with trucks unable to move the bales into store due to localised flooding across the eastern states. Considering the state of the market, it’s probably a good result to have more limited supply and this will help to steady prices.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 19	8160	7278	10.8%
South	M 19	17238	15084	12.5%
West	F 19	5697	4334	23.9%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 20	T – W	8337
South	M 20	T – W	20519
West	F 20	T – W	8085

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