Weekly Market Reports


11 December 2020

admin Macwool - Friday, December 11, 2020

 WEEKLY MARKET REPORT

Week Ending 11th December, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S24/20

This Week

M24/20

Last Sale

S23/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1903

1918 1826
+77 1925 -22

18

1623

1638

1554

+69

1815

-192

19

1442

1454

1382

+60

1723

-281

20

1300

1290

1240

+60

1708

-408
21 1230n 1235 1178n +52 1705n -475
 26 740n 759n 723n +17 1120n -380

28

500n

503

480n

+20

840n

-340

MC

765N

763N

740N

+25

1040N

-375

MARKET RISES 2 DAYS RUNNING!

The penultimate sale of the year finally delivered some good news for growers as the market strung together 2 consecutive days of gains, something it hadn’t done since mid-October. The AWEX EMI climbed by 54 cents (4.7%) to 1198 - its highest point since early November. The rise was more impressive in US$ terms with the market adding 47 cents (5.7%) to 892 as the FRX steadily increased over the week to sit at 74.40 cents (a 1% rise). The market is at its highest point since early March in US$ terms. The market started off on a dearer note following on from the positive sentiment in last sale’s final session. Competitive tension was ramped up on the final day to see prices go higher as all fleece microns added 50 to 75 cents for the week. The market cleared 98.5% of the fleece on offer to have just 75 bales unsold. Skirtings also benefitted from the renewed competition as finer < 18.5 micron and low VM (< 1.5) types lifted by 80 to 100 cents with broader lots gaining 40 to 60 cents. Growers again were happy with the rising market as just 35 bales failed to sell - a 98% clearance rate. Cardings continued their recovery as < 17.5 micron LKS, STN and CRT lifted by 40 to 60 cents with broader types being quoted 20/40 dearer. The collapsing XB market was halted as gains ranged from 20 to 40 cents - a welcome lift after the month long battering they’ve taken. The 37 cent gain for 32 micron equated to a 15% rise!!

This week’s sale was the final opportunity for buyers to buy and, more importantly, ship wool before Christmas. This sense of urgency was evident from the outset and lasted through to the final lot knocked down in Fremantle. Topmakers and traders dominated the buying lists with indent buyers less active. Indents are usually volume based and the lack of normal buying % is indicative of some semblance of price sensitivity being reached. Trader may have met factories’ needs with price surety rather than indenting the next day. The promise of a Covid-19 vaccine has finally arrived with the first vaccinations administered in the UK this week. Russia has been vaccinating for a few weeks but without any medical approval that would stand up in the West. The FDA in the US is set to approve 2 more vaccines anytime now and vaccinations will commence there before Christmas. This will come as a great relief to planet Earth. As lockdowns and social distancing are wound back people will be able to resume work and re-engage with their shopping urge. This will be more than welcome by retailers who have been sweating on consumers getting back into shops and spending money again. What effect will this have on the demand for wool?? An increase hopefully and sooner rather than later. Many buyers have spoken about how much and when the button is pushed for an increase in demand that filters through to greasy wool prices making a comeback. Their opinion of price rises is hundreds of cents apart. Time will tell. Will wool be caught up in the current trade spat between China and Australia?? The advantage we have is that we grow 80% of the world’s merino wool with South Africa, Argentina and Uruguay supplying the rest. The other crucial commodity they need is Iron ore. It also has failed to be mentioned in regards to higher tariffs.

Next week sees the final sale of the year. The national catalogue climbs to 49,000 bales (the largest since early March), up by 10,000 on this week which was the biggest in 8 months. This bigger offering is a result of the lifting market this week and growers wanting to sell before the 3 week Christmas recess. Market might open on a cheaper note but may strengthen on the final day. A good result given the size of the offering and the trades angst to absorb a catalogue well over 40,000 bales.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Mar/Apr 21

1200

Main Buyers (This Week)

1

Techwool

5427

2

Endeavour Wool

4213

3

Tianyu Wool

3889

4

Fox & Lillie

2891

5

Aust. Merino

2319

6

Lempriere

1439

Eastern Market Indicators (AUD cents/kg clean)

1198 cents é 54 cents compared with 04/12/2020

Northern Market Indicators (AUD cents/kg clean)

1257 cents é 49 cents compared with 04/12/2020

   AUD/USD Currency Exchange

0.7443 é 0.0063 compared with 04/12/2020

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