AUSTRALIAN WEEKLY MARKET REPORT

Comment

It was an exceptionally positive market this week. From the opening lot, it was obvious that there was sufficient prompt demand and prices remained strong from that point on. 18.0 micron and finer were keenly sought after, particularly those with better style and specification. Those more suited to the Italian weaver market. Chinese interests were active and at the close the average Chinese specification types were most affected by the strengthening tone. Wool sold this week would not be due for arrival into China until late March so we would have to assume that wool will be flowing again by then and production back to some normality.

Some of the smaller regional brokers offered support this week by extending the prompt date out one extra week. This is expected to continue for the next few weeks at least. This change is to allow exporters some leniency with cash flow while the situation in China has resulted in a tightening availability of cash. This initiative has been well received by exporters and this gesture of industry cooperation has been well acknowledged and assisted the positive market reaction.

AWEX Eastern Indicator compared with 31/01/2020

Eastern Indicator

Close: 1577

Change in % +1.87

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

Authentico Index Values

15 Micron

Close: 2670

Change in %: +2.53

16 Micron

Close: 2424

Change in %: +1.08

17 Micron

Close: 2251

Change in %: +1.35

18 Micron

Close: 2133

Change in %: +2.99

19 Micron

Close: 1980

Change in %: +1.85

Authentico Indicator

Close: 2265

Change in %: +1.94

Forecast

Our Authentico indicator has reached the highest point since we established it in July 2019. The previous peak was week 02, July 2019 at 2247. The Indicator is now at 2265. The strength can be attributed to the recent form of best fine wool types that have been in strong demand, particularly those with good specification and processing performance. We are of the opinion that there are less better-quality wools finer than 17.5 micron than in the previous few seasons and this is impacting positively on the market price for best fine wool. No doubt the impact of the drought in the New England region has been the greatest contributing factor.

There is a designated Tasmanian feature sale scheduled for next Tuesday. We are aware of some very suitable fine and super fine wool clips that have been kept for this sale. This should encourage strong support from Italian interests. Supply of best fine wool often shows a peak in February before dropping off considerably through until August.

Auction offering – current week

Selling Centres for week 32

Market          Sale          Offered             Sold       Passed In

North                      S 32                     9129                         8007                 12.3%

South                     M 32                    14027                       11945                 14.8%

West                       F 32                      7406                        6075                  18.0%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 33                     W/T                            8054

South                     M 33                   T/W/T                        24164

West                       F 33                     W/T                            10714

 

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