Weekly Market Reports


18 September 2020

admin Macwool - Friday, September 18, 2020

WEEKLY MARKET REPORT

Week Ending 18th September, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S12/20

This Week

M12/20

Last Sale

S11/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1474

1456n 1420n +54 1967 -493

18

1279

1283

1207

+72

1902

-623

19

1096

1085

1045

+51

1775

-679

20

994

980

949

+45

1743

-749

21 956n 949 926n +30 1735 (M) -786 (M)
 26 623n 626n 591n +32 1195n -572

28

466n

466

441n

+25

953n

-487

30

-

374n

365 (M)

+9 (M)

791n (M)

-417 (M)

MC

673n

639n

638n

+35

934n

-261

TWO WEEKS RUNNING. WILL IT BE THREE?

The increased volume for this series looked to be problematical for exporters when valuing for this week’s sale as all the talk was for a cheaper market that was most likely going to erase last week’s gains. By the commencement of sales, sentiment had changed for the good with solid increases as the week progressed. The AWEX EMI added 47 cents (5.3%) to 937 with a similar gain in US$ terms - 43 cents (6.5%) to 686 cents. The extra 1% gain in US terms came about from the upward shift in the FRX. Normally this would be a hinderance to the market’s direction but helped the market this week as the FRX strengthened over the course of the sale to 73.20 cents, up by 1 cent. Merino fleece prices rose across the board from 30 cents for 21s to 70 cents for 18 micron. The highlights were in Melbourne and Fremantle where 17.5 and 18.5s rose by 100 to 115 cents something we haven’t seen for some time. Skirtings were also caught up in the increased demand as < 18.5 micron jumped by 50/80 cents with the broader selection gaining 30 to 50 cents. Cardings continued to make upward adjustments with the 3 MCIs averaging 30 cent rises as all types in this sector made gains from 30 to 100 cents. Crossbreds weren’t left behind as they continued their rise from the ashes with most microns lifting by 20 to 70 cents.

Chinese buyers led the charge with some European orders from forward sellers and indent top-makers. Fresh business coming from an increase of enquiry that has converted into firm orders is something that has been lacking in the market since sales resumed in August when speculative stock buying was non-existent and the odd new order was filled easily as no big volume of new business was written. Is there a change in the wind?? Two weeks of rises doesn’t lend itself to a full-blown recovery but any rise in any commodity is always welcome. Of course, the elephant in the room is the 2nd wave of Covid-19 that is rampant in some countries and lockdowns and restrictions are being re-introduced hindering economic growth. The widespread release of a vaccine in the Northern Hemisphere (our critical markets) will go a long way to getting people back to work quickly and consumers spending money again without fear of not being treated if they catch the virus.

Ram sales continued this week with some outstanding results for both Merino and XB studs. Some results include: Gullengamble at Yeoval clearing 91% for a top of $6,500 3 times to average $2,590; Yarrawonga at Harden sold 97% to average $2,975 with a top of $16,000; Gilgandra’s Weealla stud sold 97% of their draft for a top of $4,000 to average $1,660 ($260 higher than last year). Another local stud, Roseville Park, cleared all 210 rams to average $2995 with a top of $26,000 these 3 studs offering a mixture of Poll and Horned rams. Merryville stud at Boorowa sold 101 rams with a top price of $6,000 to average $1750 and the MPM Stud (Multi Purpose Merino) at Girilambone cleared all of their draft for a top price of $3,200 to average $1,540. Next week’s national catalogue is 25,000 bales with a designated super-fine sale in Sydney. Showfloor talk has the market dearer again.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Nov/Dec 20

960

Main Buyers (This Week)

1

Techwool

3338

2

Endeavour Wool

3253

3

Lempriere

3195

4

Fox & Lillie

2313

5

PJ Morris

2073

6

Aust. Merino

1669

Eastern Market Indicators (AUD cents/kg clean)

937 cents é 47 cents compared with 11/09/2020

Northern Market Indicators (AUD cents/kg clean)

993 cents é 38 cents compared with 11/09/2020

   AUD/USD Currency Exchange

0.7318 é 0.0098 compared with 11/09/2020

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