Weekly Market Reports


16 April 2021

admin Macwool - Friday, April 16, 2021

 WEEKLY MARKET REPORT

Week Ending 16th April, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S42/20

This Week

M42/20

Last Sale

S40/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2148

2172 2118
+30 1748 +400

18

1833

1871

1828

+5

1593

+240

19

1546

1557

1582

-36

1513

+35

20

1308

1336

1365

-57

1493

-185
21 1250n 1245 1285n -35 1488n -238
 26 - 800n 796 (M) -4 (M) 899n (M) -99 (M)

28

510n

526

530n

-20

703n

-193

MC

877n

895n

877n

0

886n

-9


SALES RESUME ON A SOFTER NOTE

The resumption to sales after the 1 week Easter recess didn’t go to plan as far as some growers were concerned. An estimated catalogue of 52,000 bales was forecast when rosters were released last week but the totals were reduced to just under 50,000 by Monday as both buyer and seller were preparing for the market to fall marginally. This was the scenario that played out during the course of the sale as the AWEX EMI gave up 9 cents to 1291. In US$ terms the market tracked the opposite way to add 7 cents to 996, this due to the ascending FRX to 77.15 (up by 1.5%). The market fell early in the week as most participants expected but a last day recovery in Melbourne gave hope that the market has bottomed out for the moment. Finer types seemed to be in high demand as 18s and finer lifted by 5 to 40 cents to continue the trend since early in the year with finer microns becoming more valuable as the volume of these decreases with the good season pushing microns out by 1 to 1.5 broader than last season. AWTA figures back this theory up. This season has seen 15% less wool tested finer than 18.5 micron than the previous season. The trend was cheaper for 18.5 and coarser with falls of 25 to 60 cents as wools in this micron range increased in quantity with the good season, especially 19.5 and broader with higher VM lots penalised more and more. Skirtings had an up and down sale to finish the series about square with selected < 17.5 micron types with < 2.5% VM up by about 20 cents. The ever increasing VM levels could be a hindrance to advancing prices as skirtings are becoming more cotted and heavier in colour making them harder to place in orders. Cardings also had a quiet sale to have most types unchanged for the week bar high VM LKS being quoted 10 cheaper. Crossbreds couldn’t maintain their pre-Easter levels with falls ranging from 5 to 20 cents. The national pass-in rate was higher at 14% as some growers resisted the falling market. 

The well earned recess was a good chance for everyone to catch their breath. It gave buyers and exporters a chance to refuel their exhausted bank accounts. The big wool exports expenditure for February/March shipments was the main reason for stress on exporters’ finances but things are on the improve with funds now coming back to Australia with the arrival of wool in China and the week’s recess relieving some of the logistics problems for the short term. Interesting to note that Chinese imports of wool were up 64% this past February compared to a year ago.

The anticipated large offering and the stronger FRX were the main reasons for this week’s fall. The final volume of wool offered was 12% down from the original forecast and, with passed-in and withdrawn wool adding up to over 16%, just 39,700 bales were actually to the trade. As finer wools get dearer and broader types cheapen, the gap between them grows. The difference was 756 cents from 17 to 21 micron in Melbourne a month ago, now it’s out to 927 cents (2172 to 1245). With the market’s recovery in Melbourne on Thursday, things look good for next week. We sold some passed-in lots from this week’s sale this morning for increases of 30/40 cents from their passed-in prices. We open proceedings on Tuesday with 760 bales on offer and a national catalogue of 45,500 bales.

Southern Aurora Fwd Prices

Micron

Date

Low

21

June 21

1260

Main Buyers (This Week)

1

Techwool

6249

2

Endeavour Wool

3790

3

Fox & Lillie

3119

4

Aust. Merino

3090

5

Tianyu Wool

2472

6

Modiano (Aust)

2418

Eastern Market Indicators (AUD cents/kg clean)

1291 cents ê 9 cents compared with 02/04/2021

Northern Market Indicators (AUD cents/kg clean)

1355 cents ê 14 cents compared with 02/04/2021

   AUD/USD Currency Exchange

0.7712 é 0.0104 compared with 02/04/2021

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