Australian Weekly Market Report
Published October 12, 2018 by Tim Marwedel
Comment
Auction prices have improved this week across most types and descriptions, again outperforming expectations. Fine wool prices steadied and there was widespread activity and more buyers at this basis. This should be an encouraging sign for fine and superfine wool in the short term. Supply is currently at the peak. The focus of the trade this week was, however, very much on 18.5 to 22.0-micron merino types with 1 to 2% gains across this range, the broader end most affected.
AWEX Eastern Indicator compared with 05/10/2018
Eastern Indicator
Close: 2023
Change in %: +1.55%
If you want to learn more about AWEX indicators, visit the official website http://www.awex.com.au
Schneider Indicators compared with 05/10/2018
15 Micron (*)
Close: 3354
Change in %: +1.16
16 Micron
Close: 2967
Change in %: +0.34
17 Micron
Close: 2656
Change in %: -0.26
18 Micron
Close: 2463
Change in %: +1.58
19 Micron
Close: 2295
Change in %: +0.96
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
The focus on non mulesed wool is now clearer than ever. Regardless of any market premiums, it’s the different market and different orders that are keeping prices for NM wool much more stable than the general market. While recent fluctuations in prices have been well documented, the prices for NM 17.5 / 20.5 have hardly moved. This gives significant advantage to those producers. More regular demand leads to more regular prices and this would be one of the biggest advantages to growers who are able to move their production down this path. Production of NM wool in Australia is also increasing as a percentage of the national clip. AWEX data indicates that to the end of September this year we have seen a reduction in the total offering compared to the same period in 2017 by about 13% (supported by AWTA key test data). However, AWEX National Wool Declaration statistics show a reduction in NM declared lots over the same period at only 1%. Indicating a nice increase in, as a percentage of the whole clip, the proportion of NM declared lots for sale.
Auction offering – current week
Selling Centres for week 15
Market Sale Offered Sold Passed In
North S 15 8723 8111 7.0%
South M 15 15869 14958 5.7%
West F 15 7480 6640 11.2%
Auction offering – next week
Market Sale Sale days Volume
North S 16 W-T 8741
South M 16 W-T 20771
West F 16 W-T 8152
If you want to see the complete Wool Sales Roster click here.