AUSTRALIAN WEEKLY MARKET REPORT

Comment

The Australian dollar appreciated against the USD following an increase to local interest rates. This factor accounted for the greatest part of the easing market. Growers again have shown their resistance to sell into a falling market. They passed in 25% of the national offering. However, just under 33,000 bales were still sold to a value of M$46.3. There was no doubt a softening of confidence this week, but the impact of less bales being sold certainly aided the result. The wool that is not getting the full support of the buyers are types that are often neglected for a reason and, even if still held in store, may never be suitable for many customers.

AWEX Eastern Indicator compared with 05/05/23

Eastern Indicator

Close: 1284

Change in % -2

Authentico Index Values

15 Micron

Close: 3855

Change in %: -2.5

16 Micron

Close: 2729

Change in %: -3.4

17 Micron

Close: 2332

Change in %: -1.2

18 Micron

Close: 1987

Change in %: -3.1

19 Micron

Close: 1768

Change in %:  -1.9

Authentico Indicator

Close: 2404

Change in %: -2.4

Forecast

Vegetable matter is the most important factor determining the sale result. It’s not unusual for us to have higher VM on the market at this time of the year, but we would expect a few more bales with low VM scattered through the catalogue. Basically, the offering is very poor in terms of suitability for our most important European clients. It’s highly possible that this poor offering is influencing the lack of confidence in the market.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 45	9546	8213	14.0%
South	M 45	24094	18777	22.1%
West	F 45	9814	5704	41.9%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 46	T / W	10478
South	M 46	T / W / T	29298
West	F 46	T / W	8981

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