AUSTRALIAN WEEKLY MARKET REPORT

Comment

The new selling season, as is often the case, has started with a very large national offering. 51,000 bales were offered, many of them held in store for months as growers chose to sell in this sale for income tax reasons. Having wool readily available for sale is also very useful for farm cashflow. All things being considered, the market has performed exceptionally well. Tuesday’s auction, while a little cheaper, was a much better result than many expected and in fact finished the day strongly in Fremantle. This was followed through to Thursday with prices making further gains. In all nearly 45,000 bales were sold, representing a clearance rate of 87.4%. The price premium for fine and superfine types remains very healthy and we are encouraged by the level of competition on these types from many sectors including those supplying Italian weavers. Superfine wool has been keenly sought after in recent months.

AWEX Eastern Indicator compared with 02/07/2021

Eastern Indicator

Close: 1420

Change in % -0.21

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

Authentico Index Values

15 Micron

Close: 3872

Change in %:  +4.96

16 Micron

Close: 3197

Change in %: +1.94

17 Micron

Close: 2713

Change in %: +1.72

18 Micron

Close: 2308

Change in %: +0.52

19 Micron

Close: 1922

Change in %: +1.0

Authentico Indicator

Close: 2725

Change in %: +1.87

Forecast

We have just the one sale remaining before the annual three-week winter recess. The wool market has performed much better than all expectations over the past six months. Obviously, market strength is determined by supply and demand. Supply, in our opinion, remains low and this will influence short term volatility but at the same time have a positive long-term effect on price. We remain of the opinion that wool prices still appear at reasonable levels.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 01                  16212                  13923               14.1%

South                     M 01                 23627                  21175                10.4%

West                       F 01                   11421                    9721                14.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 02                     T-W                             18149

South                     M 02                     T-W                             23295

West                       F 02                      T-W                              9883

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