Weekly Market Reports


11 September, 2020

admin Macwool - Friday, September 11, 2020

 WEEKLY MARKET REPORT

Week Ending 11th September, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S11/20

This Week

M11/20

Last Sale

S10/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1420n

1369 1382 +38 1930 -510

18

1207

1193

1172

+35

1853

-646

19

1045

1024

995

+50

1755

-710

20

949

919

910

+39

1682

-733

21 926n 904 898n +28 1645n -719
 26 591n 571 526n +65 1165n -574

28

441n

438

396n

+45

953n

-512

30

-

365

319 (M)

+46 (M)

818n (M)

-453 (M)

MC

638n

609n

637n

+1

906n

-268

A SLIGHT RISE BUT ….

Talk of a reversal of the downward trend of prices rang true early in the series but the newfound optimism and hope that the market may have finally turned the corner went as quickly as it arrived as prices faded late in the sale. The falls weren’t as large as the rises so the AWEX EMI posted its 1st weekly gain since early July (following 5 weeks of falls totaling 276 cents) a rise of 32 cents to 890. The fall in the FRX to 72.2 cents had the EMI add just 12 cents to 643 in US$ terms. All fleece microns finished the sale 30 to 55 cents higher; the opening session’s rises saw 99% sold. Skirtings also saw a sharp increase in demand with all descriptions jumping by 30 to 50 cents as again growers were happy with the price hike to clear 98%. Cardings also rose but not to the extent of their combing counterparts as < 18.5 micron for all types added 20 to 30 cents to their previous values. Crossbreds also lifted themselves off the canvas to add 60/80 cents for 26s and finer while broader types were 30 to 50 cents dearer.

The sudden surge of enquiry late last week came almost exclusively from Chinese manufacturers converting virtually no demand into a dearer market that required prompt delivery which meant contracts had to be met quickly. This new business was the first real action to arise since the season opened in July. Exporters facing harder and leaner times need to cover risk quickly to maintain the funding of overheads with diminishing opportunities of trade while attempting profitable conclusions to those limited orders that are available at the moment. The new enquiry coincided with the smallest national catalogue since mid June and a favourable swing of almost 2% in the FRX the short lived price rise saw the national pass-in rate drop to just 6%, the highest clearance rate since July.

The Australian Bureau of Statistics has released data on wool exports for July which don’t paint a pretty picture. The total volume of wool exported was 8% less and the value was a massive 37% down when compared to July, 2019. Exports to China and Thailand were actually up by 8% and 13% when compared to July last year but exports to Europe fell by 59% and an incredible 79% in value while the volume to India saw a 37% decline in volume with the East Asia trio of Japan, Korea and Taiwan having a reduction of 45% from the previous July. All major wool processing countries saw declines also except Germany - their exports rose by 27% year-on-year for July. Other destinations saw declines: Italy back by 14%; Czech Republic down by 38%; and India 12% less. These figures are a stark indication of the falling wool market due to weak consumer demand.

Ram sales commenced this week with good results recorded so far. Kerin Poll at Yeoval offered 500 rams with a total clearance to top at $10,000 to average $3,100, up by $590 on last year. Hadden Rig at Warren also conducted their sale this week offering 230 rams - a mixture of poll and horned rams for another high clearance rate. Their top price of $12,000 was achieved twice - one poll and one horned with the poll rams averaging $3,210 and the horned selection averaging $2,525. An increase in volume to 33,000 bales next week will test the market. 

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Nov/Dec 20

870

Main Buyers (This Week)

1

Endeavour Wool

2423

2

Lempriere

2268

3

Techwool

2013

4

United Wool

1751

5

Aust. Merino

1366

6

Fox & Lillie

1347

Eastern Market Indicators (AUD cents/kg clean)

890 cents é 32 cents compared with 04/09/2020

Northern Market Indicators (AUD cents/kg clean)

955 cents é 36 cents compared with 04/09/2020

   AUD/USD Currency Exchange

0.7220 ê 0.0135 compared with 04/09/2020

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