Weekly Market Reports


11 January 2021

admin Macwool - Friday, June 11, 2021

WEEKLY MARKET REPORT

Week Ending 11th June, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S50/20

This Week

M50/20

Last Sale

S49/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2488

2492 2388
+100 1624 +864

18

2074

2083

2001

+73

1473

+601

19

1734

1731

1682

+52

1360

+374

20

1423

1419

1349

+74

1286

+137
21 1311 1296 1264n +47 1268n +43
 26 - 740n 733 (M) +7 (M) 833n (M) -93 (M)

28

483n

489

453n

+30

874n

-141

MC

954n

929n

925n

+29

874n

+80

CLOSING IN ON 1400!!

The impetus that the wool market has experienced over the past few sales kept going this series to have the AWEX EMI closing in on the 1400 cent mark (1393).  With the good rises comes many questions: Is underlying demand on the increase as northern hemisphere demand ramps up and consumers have more freedom to move around and spend money? Have finer wools peaked? When will the XB market improve and can the extra supply be absorbed by the market? The AWEX EMI added 50 cents (3.7%) to its value to go to 1393, the biggest weekly gain since January and a level not seen since March 2020. The jump was almost as good in US$ terms with a 38 cent lift to 1078 as the FRX was again stable at 77.40 cents. All 4 sectors of the market (Merino FLC, Skirtings, Oddments and Crossbreds) rose for the first time since January. The national pass-in rate fell to just 4%. The largest gains were in the superfine and broader MPGs (< 18 and 19.5/20 micron) rising by 70 to 100 cents with all other microns 45 to 65 cents better as just 95 bales of fleece wool were not sold in Sydney to clear 98.7%. Skirtings also gained some good traction as emphasis on < 18 micron with < 2.5% VM lifted by 30 to 80 cents with all other types increasing by 40 to 60 cents. Cardings saw double digit gains as both centres’ MCIs leapt by 28 cents with all types in this sector jumping by 20 to 70 cents. The crossbred sector saw its biggest gains since late February with rises of 20 to 30 cents.

Pressure looked to be on buyers and exporters from the opening lot as the quantity reduced to 36,300 bales - the smallest weekly selection since late November, 2020, with just the 2 East Coast centres operating. Bidding was fierce on almost all types as lack of volume and enquiry lifting resulted in the market only going one way with Chinese indent orders and local exporters selling to Chinese mills leading to the ascendency in prices. In a positive for the XB market Europe’s largest topmaker dominated this sector. The current level of 1078 in US$ terms is the first time since the pandemic sent the market into a downward spiral that we are at pre Covid-19 levels (January 2020). The values are as good as any time in the past 2 years with only 5 weeks since July 2019 having been higher than this series’ point.

It may be convenient (and a little simplistic) to point out the Covid-19 vaccination rates in the USA compared to other markets and suggest getting people back into wearing woolen suits may be linked. There is a big drive by leaders and mayors of most US cities to entice people back to their CBDs and shop there for all types of products including clothing which would be welcome news for worsted fabric manufacturers. It would be encouraging to see this directive happen across cities in Europe and Britain with lockdown restrictions hopefully to be lifted towards the end of June. Fremantle comes back onto the selling roster next week to push the national catalogue to 45,000 bales.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Sept. 21

1270

Main Buyers (This Week)

1

Techwool

4108

2

Fox & Lillie

4074

3

Endeavour Wool

3717

4

Tianyu Wool

2779

5

Kathaytex

2611

6

United Wool

2186

Eastern Market Indicators (AUD cents/kg clean)

1393 cents é 50 cents compared with 04/06/2021

Northern Market Indicators (AUD cents/kg clean)

1487 cents é 57 cents compared with 04/06/2021

   AUD/USD Currency Exchange

0.7739 ê 0.0003 compared with 04/06/2021

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=748549&A=Trackback
Trackbacks
Post has no trackbacks.