AUSTRALIAN WEEKLY MARKET REPORT

Published January 11, 2019 by Tim Marwedel

Comment

Australian wool sales resumed this week and started on a very positive note for 2019. It was a large national offering with 44,000 bales being sold to the trade for a value of $86,470,000. All types and descriptions were dearer but in particular the small offering of better specification lots always seem immune to the variability of the general market. A premium quality product is in smaller supply and more consistent demand. They are not relying only on the Chinese market. By Thursday the market had settled around 2.5% dearer for the week. Large Chinese indent orders kept prices around about on that day and we expect these orders to continue to dictate the market trend in the short term.

AWEX Eastern Indicator compared with 13/12/2018

Eastern Indicator

Close: 1910

Change in %: +2.58%

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

Schneider Indicators compared with 13/12/2018

15 Micron (*)

Close: 2,758

Change in %: +1.23

16 Micron

Close: 2,558

Change in %: +1.60

17 Micron

Close: 2,363

Change in %: -0.76

18 Micron

Close: 2,325

Change in %: +2.71

19 Micron

Close: 2,209

Change in %: +3.40

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 will no doubt see some variables in the market over the next six months as the selection deteriorates in terms of quality and quantity. The supply of good types for the Italian sector will be small so we expect the price for good types with the low CVH required by our weaver clients to remain more consistent than the general market. Growers must focus on preparing their clip as best they can to ensure they get maximum competition from the widest possible bench of buyers on any given day. Many customers were on a ‘watch’ this week so it was a good result. We have a very large national offering next week before volumes start to reduce through February and onwards.

Auction offering – current week

Selling Centres for week 28

Market Sale Offered Sold Passed In

North S 28 9922 9546 3.8%

South M 28 26260 24752 5.7%

West F 28 11411 9963 12.7%

Auction offering – next week

Market Sale Sale days Volume

North S 29 W-T 14,349

South M 29 T-W-T 28,604

West F 29 W-T 10,955

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