Weekly Market Reports


18 June 2021

admin Macwool - Friday, June 18, 2021

 WEEKLY MARKET REPORT

Week Ending 18th June, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S51/20

This Week

M51/20

Last Sale

S50/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2568

2589n 2488
+80 1613 +955

18

2169

2184

2074

+95

1438

+731

19

1810

1799

1734

+76

1314

+496

20

1500

1489

1423

+77

1243n

+257
21 1356n 1374 1311 +45 1229n +127
 26 - 765 740 (M) +25 (M) 815n (M) -50 (M)

28

493n

498

483n

+10

589 (M)

-91 (M)

MC

976n

946n

954n

+22

858n

+118

1400 DONE AND DUSTED!!!

For the second series running the AWEX EMI added 50+ cents to its value. This has the market on a 5 week ascendency that has seen it climb by 142 cents, 74% (105 cents) of that over the past 2 sales to smash through the 1400 cent mark. It has been a rapid rise from when the market was seemingly stuck between 1300 and 1350 for 7 weeks in April/May. The EMI now sits at 1448 up by 55 cents. In US$ terms the market rose by 25 cents to 1103 as the FRX dropped sharply on Wednesday night to 76.2 cents, back by 1.2%. Increases were across the full spectrum of MPGs: 20 micron and finer recorded rises of 70 to 95 cents with 21s and coarser up to 45 cents dearer as just 89 bales (1.2%) of fleece were passed-in in Sydney. Skirtings saw good gains but not to the extent of their fleece counterparts - all types and descriptions 30/50 cents to the good. The call for more knitwear which continues to dominate the fashion scene saw cardings ascend about the same level as last series with the 3 centres averaging a 26 cent rise as all types in this sector looked to be 20 to 50 cents higher - the MCIs across the 3 centres now at 956 cents. Crossbreds saw some good gains as 26s and 32 micron lifted by 25 cents with 28/30s in sellers’ favour.  Surprisingly the pass-in rate was a fraction higher at 4.6%.

The extra volume of 6,200 bales to 42,500 as Fremantle joined in didn’t dampen exporters appetite for more wool. Some buyers would be happy to take the ‘sit and wait’ approach while others are keen to secure wool for the longer term (late into the year) albeit at just below prompt market prices. There are always buyers that are cautious about pushing the market to “unsustainable levels” but, in the current environment, that looks unlikely as the processing season is historically in full swing. Chinese garment makers are missing the usual lead from European fashion designers and unsure about what colours and styles to proceed with for the up and coming season. Their processing capacity is sitting at about 70% due to a shortage of textile workers leading to the ongoing production and shipping delays that are frustrating retailers and consumers globally. Processors in Europe are busy when compared to last year but, like China, nowhere near full production capacity as their first enquiry is about delivery time then price. Spinners and knitters on the continent are busy with more and more weavers dusting off their idle looms at long last. The northern hemisphere selling season for woolen garments will start in September with consumer confidence and addressing sustainability concerns at the forefront of purchase patterns of consumers when buying discretionary items such as woolen apparel. Fremantle sit out next week’s sale with just 34,600 bales on offer on the East Coast with no talk of the market having a correction yet.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Sept. 21

1270

Main Buyers (This Week)

1

Techwool

6451

2

Tianyu Wool

4071

3

Endeavour Wool

4017

4

Fox & Lillie

3854

5

PJ Morris Wool

2381

6

United Wool

2183

Eastern Market Indicators (AUD cents/kg clean)

1448 cents é 55 cents compared with 11/06/2021

Northern Market Indicators (AUD cents/kg clean)

1543 cents é 56 cents compared with 11/06/2021

   AUD/USD Currency Exchange

0.7620 ê 0.0119 compared with 11/06/2021

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