Weekly Market Reports


10th September, 2021

admin Macwool - Friday, September 10, 2021

 WEEKLY MARKET REPORT

Week Ending 10th September, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S10/21

This Week

M10/21

Last Sale

S09/21

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2428

2479 2393 +35 1382 +1046
18

2032

2068

2005

+27

1172

+860

19

1675

1673

1633

+42

995

+680

20

1364

1349

1335

+29

910

+454
21 1279 1311 1233n +46 898n +381
 26 - 804 - - 526n -

28

467

470

475n

-8

396n

+71

MC

885

891

863n

+22

637n

+248

MARKET BREAKS THROUGH 1350!!

As we predicted last week, the market did claw back last series’ losses and some with all the rises coming in the opening session. The heat did come out of the market on the final day of selling in Sydney and Fremantle, but Melbourne bucked the cheapening trend to add a couple of cents to its indicator. By the close of trade the AWEX EMI rose by 29 cents to 1361 and a 31 cent gain in US$ terms saw the indicator climb over 100 cents to 1005. This was against a rising FRX that broke through the 74 cent barrier on Tuesday to settle at 73.85 today from a low of 73 last week. All merino fleece types rose to the tune of 25 to 45 cents. Skirtings took the lead from their fleece counterparts with rises of 30 to 50 cents on the opening day and sustained that gain with an unchanged market in the final session. Cardings, like the fleece wools, had positive then some negative movements to record 20 to 50 cent lifts, bar > 3% VM STN which gave back 10 to 20 cents. All 3 centres’ MCI’s are now averaging 896 cents. Crossbreds continue to lag behind merino types with 28 and broader losing 5 to 10 cents except 26s in Melbourne which added 30 cents. The national pass-in rate dropped to 9% from 20% last sale.

All the talk was positive from the last lot sold last week till Tuesday’s sale, as buyers booked up plenty of wool at good premiums above previous week’s levels, which translated into good increases in the sale room on Tuesday. Most were predicting 20 to 30 but the gains of up to 50 cents put a stop to fresh enquiry as most traders could not sell a bale later in the sale (Wednesday) thus the market stalling. Europe looks to have taken up some of the slack from China at the moment as the continent returns to work from Summer holidays and demand is good with most processors back to full capacity. Some buyers who did very little business with Europe are selling a lot more to them than in past years. Some prices paid for sub 16 micron fleece types were excellent with gains of 1200 to 2500 cents clean from last week for some 14 to 15 micron lots. Some lots from 14.4 to 13.1 micron made from 4700 to 7400 cents. This week marks one year since the market bottomed out at 858 cents. At today’s level of 1361, this is a 63% recovery in the EMI. How far can it go?? Some buyers and brokers are very confident that the market can go higher when the Asian demand picks up and competes with the European demand. This may happen sooner than later.

Ram sales have commenced with Haddon Rig holding their sale yesterday. Covid-19 didn’t seem to restrict the sale as nearly 200 poll rams sold from a top of $19,000 to average $3,236 and 130 horned rams averaged $2,760 with a top of $20,000 - a combined average of $3,045 for the 330 rams sold. AWI elections will be held in November and a vote on the woolgrower levy to be paid for the next 3 years, from July 2022, is to be held. Any grower that has paid $100 in levies over the past 3 years is eligible to vote. Voting can be done online from Monday, 13th September till Friday 5th November at www.woolpoll.com.au or 1800 211 736.


Southern Aurora Fwd Prices

Micron

Date

Low

21

Nov. 21

1280

Main Buyers (This Week)

1

Techwool Trading

4444

2

Endeavour Wool

3340

3

Fox & Lillie

2838

4

Tianyu Wool

2613

5

Australian Merino

1962

6

Modiano Australia

1810


Eastern Market Indicators (AUD cents/kg clean)

1361 cents é 29 cents compared with 03/09/2021

Northern Market Indicators (AUD cents/kg clean)

1443 cents é 26 cents compared with 03/09/2021

   AUD/USD Currency Exchange

0.7383 é 0.0071 compared with 03/09/2021

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