AUSTRALIAN WEEKLY MARKET REPORT

Comment

The offering increased approx. 10% this week which usually would see traders and indent buyers enthusiastic to secure some volume, however this week was not the case as we lost the gains from the previous week. The China covid situation is having an impact on retail sales which could continue leading up to the lunar celebrations of the new year. Shipping scheduling pressure seem to disappear this week, creating a less urgent approach. Less volatility in the Australian dollar. Offers coming in from China, Japan, Europe and India are generally below replacement cost which is causing the slowdown in the market at the moment. Finer microns like 16 and 17 seemed to have equalized with the rest of the market to find a level and traded actively this week. Certified wool still remains in keen demand with good activity and trading above normal levels. 19 to 21 micron still seem to have good demand as they traded more positively than the rest this week.

AWEX Eastern Indicator compared with 25/11/2022

Eastern Indicator

Close: 1224

Change in % -2.40

Authentico Index Values

15 Micron

Close: 3313

Change in %: -5.20

16 Micron

Close: 2764

Change in %: -1.30

17 Micron

Close: 2404

Change in %: -2.90

18 Micron

Close: 2000

Change in %: -3.00

19 Micron

Close: 1755

Change in %:  -0.10

Authentico Indicator

Close: 2381

Change in %: -2.70

Forecast

Another increase of 10% in volume will surely test the market next week as traders try to encourage sales at market levels. The shipping scheduling squeeze seems to be over for the xmas period. Panic selling from growers concerned how far this market may come down could increase volumes in sale, however shearing delays are still a reality, as is getting wool off farm and into store for testing. The expectation is that the sales after the recess will have increased volume so why rush in and buy before the recess?

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 22	10439	9268	11.2%
South	M 22	18890	15949	15.6%
West	F 22	8018	5738	28.4%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 23	T – W	11494
South	M 23	T – W – T	25689
West	F 23	T – W	7592

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