Weekly Market Reports


12 February 2021

admin Macwool - Friday, February 12, 2021

 WEEKLY MARKET REPORT

Week Ending 12th February, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S33/20

This Week

M33/20

Last Sale

S32/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2125

2142 2123
+2 2063n +62

18

1786

1806

1780

+6

1928

-142

19

1536

1547

1532

+4

1833

-297

20

1340

1333

1346

-6

1803

-463
21 1223n 1224 1243n -20 1773n (M) -549 (M)
 26 - 734n 799n (M) -65 (M) 1160n (M) -426 (M)

28

510n

518

555n

-45

866 (M)

-348 (M)

MC

889n

892n

898n

-9

1108n

-219

HAPPY CHINESE NEW YEAR, HOPEFULLY!

Since the big rise of 2 weeks ago the market had pretty much marked time but, by the numbers, has cheapened up slightly. The AWEX EMI lost 10 cents this sale to 1275 following on from the 6 cent fall the previous series with XBs, cardings and broader merino fleece types (20 micron and stronger) the main contributors to the EMI falling. This week’s largest offering since the opening sale of the year and the strengthening FRX gave buyers an opportunity to relax their buying patterns and take stock of what has been a frantic start to the year. With the stronger A$ the market rose slightly in US$ terms, up by 6 cents to 985. The merino combing types fared well despite the increased volume with all microns adding up to 10 cents bar 20s and broader which lost 5 to 20 cents. The worry for these broader types is the increase in volume of these microns due to the good season pushing clips broader with many growers reporting their wool 1 to 1.5 micron coarser than last year. The demand for these broader types has not increased as the volume has; with the opposite effect on finer clips - less in volume and increased demand. The pattern of price movements was the same in the merino skirting sector, fully firm for types < 20 micron but 10 to 20 cent losses for the broader types. A we mentioned earlier the fall in cardings contributed to the overall fall in the market. Washing types (< 2% VM) finished the sale unchanged with the 3% VM and higher lots losing 10/20 cents for the week. The MCI in Sydney fell below 900 cents to 898 - a loss of 11 cents. Just when we thought (and hoped) XBs may be on the long road to recovery, they took a large hit and were the main reason the EMI fell this week, all microns fell between 10 and 60 cents (5 to 8%).

Melbourne featured an excellent selection of Tasmanian wool this sale which seemed to woo the Italians from their slumber to underpin the solid market and increasing demand for fine and superfine types with these MPGs adding up to 45 cents in the south. You would expect these wools to be top prices for the week but it was a few lots from our colleagues in Cooma, Gordon Litchfield Wool, that sold two 14 micron lots for 3140 and 3020. Traders dominated the top positions of buying lists with top-makers, processors and indent operators all keen to purchase for their immediate needs. Apart from Chinese mills providing the backbone for current prices and the Italians chasing the “top end” clips, the largest European top-maker continues to operate with a smattering of Indian orders competing as well.  

Today marks the start of Chinese New Year, sometimes a tricky part of the year to sell wool. Many businesses are now closed for a week to 10 days which may cause difficulty in financing wool purchases for the next 2 sales. Reports have some mills already closed, some taking a 4 week shutdown and others working through the festive season to avoid workers returning from other provinces having to quarantine for 14 days. Some reports also suggest that a bit of “stocktaking” has happened over the past few sales even with demand further down the processing pipeline less than expected or needed. There is still plenty of showfloor chatter that massive uniform orders from the Chinese government are set to be placed at any time - most likely post Chinese New Year. Speculation is rife on the volume and make-up of the types of wools they will be purchasing but when it happens will it be like the charge of the light brigade?

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Apr/May 21

1265

Main Buyers (This Week)

1

Techwool

6135

2

Fox & Lillie

3804

3

Endeavour Wool

3638

4

Lempriere

2765

5

Aust. Merino

2718

6

Tianyu Wool

2613

Eastern Market Indicators (AUD cents/kg clean)

1275 cents ê 10 cents compared with 05/02/2021

Northern Market Indicators (AUD cents/kg clean)

1352 cents ê 10 cents compared with 05/02/2021

   AUD/USD Currency Exchange

0.7726 é 0.0110 compared with 05/02/

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