The last two weeks have seen a significant change in market sentiment. As we said a few weeks ago, the price then was not a true reflection on the value of wool. It was more a reflection of the circumstances that the global economy is in. Wool production in Australia remains at a 100-year low and prices have been at least 40% lower than the same time last year. Simple supply and demand economics will eventually result in a more positive market outcome. We presume that has been the reason for the quick turnaround. The industry is now smaller than ever and market reactions are expected to be quicker and more volatile. Most had stood and watched while outlook remained uncertain. That has been understandable. Eventually however, the low prices and a fear of missing out has resulted in a rush on business for prompt shipment with the Chinese market dominating.

AWEX Eastern Indicator compared with 18/09/2020

Eastern Indicator

Close: 1036

Change in % +10.57

If you want to learn more about AWEX indicators, visit the official website

Authentico Index Values

15 Micron

Close: 2320

Change in %:  +6.13

16 Micron

Close: 1977

Change in %: +6.92

17 Micron

Close: 1739

Change in %: +6.23

18 Micron

Close: 1545

Change in %: +6.63

19 Micron

Close: 1350

Change in %: +9.85

Authentico Indicator

Close: 1748

Change in %: +6.78


Not a lot has changed with regards to the global retail and consumer confidence situation. We expect some volatility in the short term will continue. It’s not uncommon at this time of the season. However, growers have shown a strong resistance to sell at the low levels and despite the improved market, not all will be prepared to sell yet. This will limit the volume available and the recent low levels are now unlikely to return.

Auction offering – current week

Market          Sale          Offered             Sold       Passed In

North                      S 13                      6720                         6554                  2.5%

South                     M 13                     11384                       11183                   1.8%

West                       F 13                       5156                         4904                   4.9%

Auction offering – next week

Market          Sale          Sale days          Volume

North                      S 14                        T / W                         8002

South                      M 14                       T / W                         19149

West                        F 14                        T / W                         6088


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