AUSTRALIAN WEEKLY MARKET REPORT

Published February 21, 2019 by Tim Marwedel

Comment

Restricted quality and quantity on offer, high market prices, the suspension of sales in South Africa added to confused customers is fuelling a very erratic wool market. Mostly upward but some correction was noted yesterday, particularly in the west. This will add to the varied opinions, confusion and speculation for the wool market next week and the weeks to follow. Currency markets are also moving daily and we now have more volume available next week than originally anticipated. There was no doubt a degree of panic on Tuesday when Melbourne sold in isolation but a degree of sense prevailed when more volume was available nationally on Wednesday and Thursday.

AWEX Eastern Indicator compared with 15/02/2019

Eastern Indicator

Close: 2027

Change in %: +2.99%

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

Schneider Indicators compared with 15/02/2019

15 Micron (*)

Close: 2,855

Change in %: -1.65

16 Micron

Close: 2,686

Change in %: +0.07

17 Micron

Close: 2,555

Change in %: +2.62

18 Micron

Close: 2,408

Change in %: +0.29

19 Micron

Close: 2,320

Change in %: +2.93

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

While the market movement this week was substantial, we noted very clearly that the prices for the better Italian types on offer hardly moved. They are attracting very different competition, with a more reliable and steady buying base. This should give the better weavers more confidence at this market level in the short term. These types are available in only very small volumes at this time of the season. We have the very last superfine sale in Sydney next week. The last from Tasmania was last week and the NZ offering in Melbourne yesterday also looked to be a clear out sale.

Auction offering – current week

Selling Centres for week 34

Market Sale Offered Sold Passed In

North S 34 9054 8752 3.3%

South M 34 22114 20970 5.2%

West F 34 8800 7713 12.4%

Auction offering – next week

Market Sale Sale days Volume

North S 35 W-T 12473

South M 35 W-T 25546

West F 35 W-T 11719

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