AUSTRALIAN WEEKLY MARKET REPORT - The Schneider Group

Comment

Prices eased across the board on Tuesday following the strong performance last week. Leading into the sale, there wasn’t the trade confidence that we’d seen in the past couple of months. The negative sentiment was, however, short lived. Prices stabilised over the remaining two sale days. According to AWEX reports, it was the largest weekly offering in three years. This shows the relative strength and maturity of the market. Growers again showed their reluctance to sell in a falling market. Around 16% of the national offering, more in Fremantle, was passed in after failing to meet grower pre-sale expectations. The feature of this week’s sale was approximately 5,000 bales offered in Melbourne as part of the annual Tasmanian feature sale. This was a good opportunity for Italian interests, us included, to secure some volume for our European customers. There will be limited opportunities for good fine wool from March onwards. These specialty wools attracted good competition from a range of buyers.

AWEX Eastern Indicator compared with 10/02/2022

Eastern Indicator

Close: 1374

Change in % -1.86

Authentico Index Values

15 Micron

Close: 3706

Change in %: -7.3

16 Micron

Close: 3049

Change in %: -0.8

17 Micron

Close: 2659

Change in %: -0.5

18 Micron

Close: 2274

Change in %: -2.8

19 Micron

Close: 1902

Change in %: -2.4

Authentico Indicator

Close: 2650

Change in %: -2.3

Forecast

With another large sale rostered for sale next week, AWEX have reported that these two consecutive weeks will provide the largest two week offering that we’ve had in 12 years. It will be a strong performance if the market is able to absorb this volume. With some grower reserves, the market will likely remain within a relatively narrow range like it did this week. This should go a long way to installing some market confidence for the next few months.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 33	13744	11869	13.6%
South	M 33	30235	26177	13.4%
West	F 33	13217	9643	27.0%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 34	T / W	13757
South	M 34	T / W / T	33309
West	F 34	T / W	10255

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