Weekly Market Reports


15 January 2021

admin Macwool - Friday, January 15, 2021

 WEEKLY MARKET REPORT

Week Ending 15th January, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S29/20

This Week

M29/20

Last Sale

S25/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1907

1910 1871
+36 2122 -215

18

1592

1627

1578

+14

2005

-413

19

1389

1390

1390

-1

1909

-520

20

1246

1245

1249

-3

1878

-632
21 1180 1162 1180n 0 1870 -690
 26 721n 728 710n +11 1195n -474

28

460n

471

460n

0

914n

-454

MC

789n

815n

764n

+25

1123n

-334

A SOLID, STEADY START!

It’s been 4 weeks since our last report and plenty has happened on a global front. Political chaos in the US, the pandemic almost out of control in many countries with vaccines released (but slower administering than governments would like) to good summer storms over big areas to set up a good late summer season and the recommencement of wool sales. All participants were nervous about the start of sales for the new year: a big anticipated offering for the opening 2 sales of 111,500 bales and the appreciating A$ over the recess to above 78 cents last week (3% higher than the close before Christmas) led to talk of the market losing 30/50 cents and, in fact, a tough 2/3 weeks was all the talk with the large volumes and the high FRX. By last Friday the chatter had turned positive to have a market solid at least for the biggest sale since March. The EMI lifted by a modest 15 cents to 1172 and 33 cents to 907 in US$ terms due to the rising A$. The finer microns < 18.5 performed the best gaining 10 to 60 cents - the finer the micron the higher the rise as 19s and broader look to be in a holding pattern. Skirtings also added to their pre-Christmas values with identical gains to the fleece wools, finer than 18 micron 10 to 60 cents higher with the increases higher with the finer microns. Cardings also had a good opening to the year with the 3 centres averaging a 38 cent rise with all types in this sector rising by 10 to 50 cents. The large XB catalogue (24% of the national total) was the least performing sector of the sale with all buyers struggling to do business and recovery could be a long time off. The market was in sellers’ favour (up by 10 cents) but growers were looking for bigger increases as 20% was passed-in.  

As far as the national volume was concerned it was the same old story as last year. The original quantity on offer didn’t eventuate as Monday’s forecast of 56,840 shrank to 52,290 - a reduction of 4,550 (8%) with a pass-in rate of 11% saw 46,500 bales sold to the trade. Focus was on the sub 18 micron types as the improved seasonal conditions in a lot of wool growing areas will see microns broaden out with less super-fine types available. On the Chinese processor side, the current lack of competition from Europe and India in the super-fine sector has opened up big export opportunities for them to supply yarn and tops to these destinations. Traders and Chinese top-makers dominated all sectors buying lists.  

Away from wool sales but certainly related is the current shortage of shearers on the Eastern seaboard. All contractors are reporting of a big shortage of shearers and shed staff. Many contractors are running well behind schedule and are splitting teams to try and catch up. We know of several clients that had shearing booked in well before Christmas that are still on a “waiting list“ or just getting sheep shorn now. Weekend shearing and growers offering to pay over $4.00/head to attract shearers is not uncommon. The problem has been brewing for months now which has been exacerbated by the pandemic. Early last year when international travel was closing down a lot of Kiwi shearers went home and have not been able to travel back to Australia. Also the shearing rate in NZ has lifted substantially to now be comparable to the rate here. This will help Kiwis stay at home where they can earn the same $ that they would have here and contend with a lot less merinos there thus depleting shearer numbers here for the long term, not just while Covid-19 is on the radar.  Also the closed borders in Australia late last year prevented any interstate travel which is part of normal shearing practice. Shearing shed and accommodation standards are always a problem and some contractors are saying if these are not up to a certain standard they may be in a position to “pick and choose” their sheds depending on the facilities or lack of. Just under 50,000 bales are on offer next week with a solid market all the talk.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Mar/Apr 21

1160

Main Buyers (This Week)

1

Techwool

7584

2

Endeavour Wool

4862

3

Fox & Lillie

4062

4

Tianyu Wool

3959

5

Lempriere

3734

6

United Wool

2747

Eastern Market Indicators (AUD cents/kg clean)

1172 cents é 15 cents compared with 16/12/2020

Northern Market Indicators (AUD cents/kg clean)

1233 cents é 15 cents compared with 16/12/2020

   AUD/USD Currency Exchange

0.7741 é 0.0189 compared with 16/12/2020

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