Weekly Market Reports


12 March 2021

admin Macwool - Friday, March 12, 2021

WEEKLY MARKET REPORT

Week Ending 12th March, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S37/20

This Week

M37/20

Last Sale

S36/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2117

2121n 2126
-9 1987 +130

18

1809

1825

1825

-16

1850

-41

19

1603

1601

1597

+6

1768

-165

20

1405

1400

1396

+9

1748

-343
21 1307n 1304 1297n +10 1743n -436
 26 765n 795n 804n (M) -9 (M) 1123n -348

28

520n

530

525n

-5

875n

-355

MC

880n

889n

869n

+11

1054n

-174

MARKET REMAINS STABLE!

Once again we saw a market that struggled to move as stability is the name of the game. The AWEX EMI gave back just 1 cent to 1309. The FRX lost a third of one cent to sit around mid-77 cents as the market added 6 cents to its value in US$ terms to 1016. Looking at the 3 centres we had almost 3 different results. Sydney’s fleece types fell by 5 to 15 cents for < 18s as 19s and broader had modest gains of 5 to 10 cents. Melbourne’s market was overall cheaper with all microns 5 to 10 cheaper bar 17s and 18.5 that rose by 5 to 15 cents. Fremantle fared the best of the 3 centres with 19.5 micron and finer 15 to 30 cents up with 20s and broader gaining up to 10 cents. Fremantle’s indicators are on par or up to 26 cents higher than their east coast counterparts - normally a good sign that the market here can play catch up to the higher levels.  Despite the up and down movements of the fleece market, just 4.6% was passed-in. Skirtings followed the fleece price direction as the opening day’s gains of 10/20 cents were given back in the final session to have this sector unchanged. Cardings continued their positive run as the 3 centres averaged a 19 cent gain to their MCIs as STN and CRT added 20 to 50 cents while LKS were fully firm. The fickle XB market gave up ground this sale as fine and broad microns (26 and 30) fell by 10 cents with the middle microns cheapened up by 30 to 40 cents.

The past few sales have seen the gap between superfine and medium types edge closer as the season for offering < 18 micron draws to a close leading up to Easter. Another widening gap is between medium type merinos and XBs as a global oversupply of 28 micron and broader hampers this sector of the market to have little chance of improving in the short term as demand is sluggish with full recovery from Covid-19 a long way off. On the international scene global demand for New Zealand wool is very strong albeit from a very low base with the market in South Africa continuing to edge further ahead of the Australian market with 19 to 21 micron well ahead of our prices as buyers push hard to secure wool from there as their selling season draws to a close. The selling season in South America is all but finished with virtually all their greasy wool at local mills to keep machinery running through the winter. Demand signals range from terrible in some sectors to enquiry emerging in other areas as supply will run short with the selling season closing in the 2 other main suppliers. Early stage processors are continuing to buy wool and build up a stock-pile ready when for when downstream processors call for “tops” kicks back into gear. Many in the wool pipeline are amazed the greasy market has lifted so dramatically from its low point of 858 cents in early September to +1300 today, a massive 66% gain given that demand from some of their customers is lack-lustre or non-existent with some delaying further purchases expecting a major shift in price.

In a global showcase of Australian Merino wool the America’s Cup team Luna Rossa Prada Pirelli has benefited from the performance attributes of the fibre in its sailing uniform thanks to a partnership with AWI’s subsidiary, The Woolmark Company. The partnership of The Woolmark company with this legendary Italian team highlights the strong link between the world of sport and Australian Merino wool as a premium performance fibre. The partnership has achieved immense media coverage and is influencing global consumers to consider and ultimately purchase Australian Merino wool for activewear. The Woolmark logo can be seen on the team Italy boat when the spinnaker is unfurled.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Apr/May 21

1270

Main Buyers (This Week)

1

Techwool

6292

2

Endeavour Wool

3545

3

Fox & Lillie

3486

4

Lempriere

2780

5

Tianyu Wool

2738

6

Kathaytex Aust.

2498

Eastern Market Indicators (AUD cents/kg clean)

1309 cents ê 1 cents compared with 05/03/2021

Northern Market Indicators (AUD cents/kg clean)

1375 cents ê 3 cents compared with 05/03/2021

   AUD/USD Currency Exchange

0.7747 ê 0.0037 compared with 05/03/2021


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