Weekly Market Reports


16 July, 2021

admin Macwool - Friday, July 16, 2021

WEEKLY MARKET REPORT

Week Ending 16th July, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S02/21

This Week

M02/21

Last Sale

S01/21

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2538

2503n 2536
+2 1638 +900

18

2129

2130

2115

+14

1428

+701

19

1768

1770

1748

+20

1279

+489

20

1438

1446

1427

+11

1229

+209
21 1342 1324 1312 +30 1228n +114
 26 - 811n - - - -

28

530n

514

470n

+60

574n

-44

MC

948n

968n

959n

-11

801n

+147

A GOOD SOLID FINISH TO WOOL SALES!!

The market managed to keep its head above water defying a potential drop in values due to excessive quantities. A dearer opening session led to the final day’s drifting market, wrapping up sales before the annual 3 week Winter recess. The 1st 2 sales of the season have seen a plethora of wool being offered with 100,200 bales compared to just 66,000 in last year’s 2 corresponding sales - an increase of 51%. The market has managed to absorb this extra volume as the net result for the 2 July sales has seen a 5 cent rise for the AWEX EMI. The FRX’s favourable adjustment and no wool sales worldwide for the next 3 weeks saw buyers trying to fill outstanding orders and get as much wool as possible on the water. The EMI rose 8 cents to 1428 as finer microns (< 17) were firm in Sydney but fell by 45 to 85 cents in Melbourne, while all others ranged from 10 to 30 cents better. Skirtings had a good series with the low VM types < 2.5% gaining 20 to 25 cents with burrier lots just in buyers’ favour. Cardings were the only sector to lose ground as types above 3% VM gave up 20 to 40 cents while all others were fully firm for the sale. The MCI lost 11 cents and is now sitting at 948. Crossbreds regained last sale’s losses as most microns added 25 to 60 cents to last week’s prices. The FRX stayed at 74.6 cents all week with the pass-in rate at 13%. In US$ terms the market rose by 6 cents to 1066.  

China topped all sector’s buying lists with good and increasing support from the other major wool destinations - Italy, India and Czech Republic. Local traders were keen to secure volume with Chinese indent and top-makers active. Europe’s largest top-maker flexed their muscle to push XBs higher purchasing 32% of the offering.

European yarn and fabric fairs have recently been held with Italian processors given a chance to collaborate with customers and work on buying strategies for the next 6 to 12 months. As the table above illustrates, 19 micron and finer have staged a remarkable recovery over the past 12 months. The trade is very comfortable with these types of wools that command premiums lingering at the present price levels, having been missing for 18 months. One big theme that arose from the Pitti Filati Yarn and Idea Beilla Yarn fairs was “sustainability” - something that will become more and more critical into the future. Another buzzword is “Blockchain” which will be intensely discussed at future conferences and exhibitions for the fashion industry. This facilitates the transfer of data rather than maintaining a central repository ensuring no one can modify or manipulate anything along the wool production pipeline to suit their own requirements. Blockchain systems will make processors more efficient and transparent while highlighting ethical and sustainable practices. Sales recommence on Tuesday, 10th August.


Southern Aurora Fwd Prices

Micron

Date

Low

21

Oct. 21

1320

Main Buyers (This Week)

1

Techwool

6548

2

Fox & Lillie

4425

3

Tianyu Wool

3995

4

PJ Morris

3516

5

Endeavour Wool

3437

6

Modiano Aust.

2457


Eastern Market Indicators (AUD cents/kg clean)

1428 cents é 8 cents compared with 09/07/2021

Northern Market Indicators (AUD cents/kg clean)

1522 cents é 12 cents compared with 09/07/2021

   AUD/USD Currency Exchange

0.7463 è 0.0000 compared with 09/07/2021


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