AUSTRALIAN WEEKLY MARKET REPORT

Comment

With the New Zealand offering in Melbourne, the volume of superfine wool available was significantly up this week and this impacted on the market trend. 15.0 and 16.0 micron average types were certainly lower due to the volume available. The pressure remains on certified wools 16 to 19 micron, but it’s also important that they be good quality. It’s not sufficient enough just to be certified. The wool needs to meet, at a minimum, the better Chinese specification. Otherwise, little market premiums are realised. To gain the attention of the European market, staple length and strength should be 70/90mm and 40+nkt respectively. Longer staple length wools or lower strength lines tend to fall more into the Chinese market.

AWEX Eastern Indicator compared with 16/10/26

Eastern Indicator

Close: 1785

Change in % -1.0

Authentico Index Values

15 Micron

Close: 3300

Change in %: -7.3

16 Micron

Close: 2979

Change in %: +1.0

17 Micron

Close: 2936

Change in %: +3.0

18 Micron

Close: 2745

Change in %: -1.2

19 Micron

Close: 2482

Change in %:  +1.8

Authentico Indicator

Close: 2878

Change in %: -0.6

Forecast

The market does appear to be in a holding pattern at the moment with small daily movements, generally weaker. However, the tight supply continues to keep levels relatively stable. This is despite that demand is not as consistent as we need for the market to improve. All eyes will be on the next few weeks where we do hope for better trading conditions.

Auction offering – current week

Market	Sale	Offered	Sold	Passed In
North	S 17	6245	5754	7.9%
South	M 17	14234	12136	14.7%
West	F 17	3524	3089	12.3%

Auction offering – next week

Market	Sale	Sale days	Volume
North	S 18	T / W	7061
South	M 18	T / W	18696
West	F 18	T	5641

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