AUSTRALIAN WEEKLY MARKET REPORT

Published November 23, 2018 by Tim Marwedel

Comment

What a significant reversal of market form! We have been of the opinion for some time that little had changed and the limited supply will continue to encourage market volatility. After the significant downward trend, prices were always going to react in reverse sooner rather than later. It’s usual for prices to over-react in such circumstances. 18.5 to 22.0-micron merino were all 5% dearer for the week. 28.0-micron crossbreds were 10% dearer over the two selling days. The most noticeable factor remains the keen interest for non mulesed wool. Momentum continues to build with interest for 17.0 to 21.5 micron non mulesed wool clearly reaching new heights. Market signals have never been clearer with regards to what the customer is demanding.

AWEX Eastern Indicator compared with 22/11/2018

Eastern Indicator

Close: 1858

Change in %: +4.32%

If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au

Schneider Indicators compared with 22/11/2018

15 Micron (*)

Close: 2,634

Change in %: -1.37

16 Micron

Close: 2,508

Change in %: -0.56

17 Micron

Close: 2,362

Change in %: +3.09

18 Micron

Close: 2,225

Change in %: +3.69

19 Micron

Close: 2,086

Change in %: +3.07

Each indicator is expressed by a number representing a market quotation for a selected range of types and is not a price expression and it’s not influenced by currency fluctuations.

Wool indicators are anyway based on Australian Dollar.

If you want to learn more about SCHNEIDER indicators Click here.

Forecast

We mentioned limited supply being the key market factor. AWEX seasonal comparisons for first hand offered clean kg’s has now reached an incredible 20% reduction year on year over the same period. On that basis we can see a 20% reduction in demand and we should still be square in terms of supply and demand. Just the three sale weeks remain until a three-week Christmas recess. As we pointed out last week, stocks of greasy wool must be running low. Lower sale volumes and recently high passed in rates eventually forced the sharp spike this week, but what remains unclear is if demand remains strong through the pipeline.

Auction offering – current week

Selling Centres for week 21

Market Sale Offered Sold Passed In

North S 21 7852 7660 2.4%

South M 21 15016 14343 4.5%

West F 21 7893 6992 11.4%

Auction offering – next week

Market Sale Sale days Volume

North S 22 W-T 9239

South M 22 W-T 19441

West F 22 W-T 7767

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