AUSTRALIAN WEEKLY MARKET REPORT

Comment

Auction sales resumed this week after the three-week recess. Global demand was varied in recent weeks. There was no doubt some very encouraging demand from Europe in July but interest from China was more subdued in recent weeks. After the initial correction on Tuesday, vegetable matter quickly became the main focus. The exceptional season in the eastern states has resulted in fleece lines consistently testing in excess of 1% VM. Most standard Chinese types require 1% average so anything greater than 1.5% was irregular but those under 1%, regardless of quality, were more keenly sought after. Italian weaver interests were competing on the better quality and specification fine fleece types.

AWEX Eastern Indicator compared with 16/07/2021

Eastern Indicator

Close: 1372

Change in % -3.92

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

Authentico Index Values

15 Micron

Close: 3727

Change in %:  -4.38

16 Micron

Close: 3034

Change in %: -2.97

17 Micron

Close: 2655

Change in %: -0.60

18 Micron

Close: 2231

Change in %: -2.45

19 Micron

Close: 1819

Change in %: -3.45

Authentico Indicator

Close: 2627

Change in %: -2.38

Forecast

While the market was cheaper over the week, it was obvious when trying to buy a type to specification, particularly relating to VM, then the competition was much more competitive. Growers have again shown their reluctance to sell in a cheaper market with a high passed in rate reported by AWEX. This is an example of a more positive and mature market outlook for wool. Unlike the ‘old days’ when growers were relying only on wool income, they now have other income streams and have shown that they are prepared to hold wool for better market conditions. As a result, 40% of this week’s original quantity was either passed in or withdrawn prior to sale and next week’s national volume has already been reduced by 11% since the most recent forecast of 9^th August.

Auction offering – current week

Market          Sale         Offered        Sold       Passed In

North                      S 06                  17047                 11191                 34.4%

South                     M 06                 23685                16558                30.1%

West                       F 06                   8449                   5090                39.8%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 07                      T / W                         13028

South                      M 07                     T / W                         24137

West                        F 07                       T                                  4119

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