Weekly Market Reports


1st April, 2021

admin Macwool - Thursday, April 01, 2021

 WEEKLY MARKET REPORT

Week Ending 1st April, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S40/20

This Week

M40/20

Last Sale

S39/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2118

2116 2102
+16 1743 +375

18

1828

1831

1799

+29

1578

+250

19

1582

1585

1571

+11

1508

+74

20

1365

1366

1365

0

1463

-98
21 1285n 1270 1280n +5 1458n -173
 26 - 804n 788n (M) +16 (M) 951 (M) -147 (M)

28

530n

526

510n

+20

703n

-173

MC

877n

894n

876n

+1

899n

-22

1,300 A NICE NUMBER TO FINISH ON!!

The market’s subtle rises this week and last have seen the AWEX EMI finish this run of sales at 1300 cents - an increase of 143 cents (11%) since sales resumed in January. The best performing microns have been the fine and superfine types (< 18.5) which have averaged a 246 cent gain in that time. Broader than 19 micron have lifted 116 to 192 cents, with the gap between 19 and 21 micron widening from 210 cents at the start of the year to 297 cents now. The way the days fell in March, we were able hold 5 sales with a total offering of 224,200 bales - the largest March offering in 10 years. As we stated, the market rose by 15 cents to 1,300 with fine wools < 19 micron the main beneficiary gaining 10 to 30 cents. Broader types ended the sale either side of firm by 5 cents. Skirtings had good rises over both days with < 2.5% VM lots 25 to 35 cents to the good and all others 15 to 20 cents better. Cardings had a pretty stable week with no real change in any centre ending with an average movement of -4 cents. Crossbreds also made minimal gains of 5 to 15 cents with the national pass in rate identical to the previous series at 9.5%. The FRX was also a mirror image of its level from last sale at 76.05 cents.

A highlight of our catalogue this sale was the offering of 380 bales of NM wool from two growers under the “Responsible Wool Standard” (RWS) - a voluntary quality scheme founded in 2002 by the Textile Exchange. RWS engages with participants all along the pipeline from growers to retailers in fibre and materials industries.  It’s no secret that for some time now processors and an ever increasing number of retail brands have expressed their desire to purchase more and more NM wool as demand increases. As we have mentioned in previous market reports, oftentimes premiums have been few and far between and in stark contrast to some media reports of NM wool premiums running at 5 to 10%, this was again the case. NM types that were not in the RWS scheme were mainly the same level as prices achieved by “mulesed wool”. Some NM lots even making less money than same mulesed wool types, except a few burry WNR fleece types selling 6 and 8% higher than equivalent mulesed wool. The lots in the RWS scheme were a completely different story, with most lots averaging an 8 to 12% premium (80 to 150 cents) above the market - this equates to $140 to $270/bale better for fleece wools.

Competition was widespread amongst all traders and exporters from China, India, and a smattering of enquiry from Europe, as buyers put to one side concerns of logistical and finance problems keen to secure quantity before next week’s Easter recess. Problems with shipping and finance are still dominating show floor talk, but reduced volume did ease pressure slightly when trying to finance purchases. The original rostered catalogue of 48,800 didn’t eventuate with 44,200 bales being offered, a 10% reduction which has been the case for some time. The cutoff point for which sales are deemed too large looks to be around the mid to high 40,000 mark - any higher the market struggles and below this figure the market seems to cope quite well. A quick look at the yearly comparisons actually has this week’s market 13 cents higher than the same sale 12 months ago. March 2020 was a bad month for the wool market, collapsing by 294 cents (1581 to 1287) when the rot set in from Covid-19 ramifications - and we’re still in recovery mode. Next week is a recess, we’ll offer 1,400 bales on Wednesday, 14th April. Happy Easter to all!!

                                                    Southern Aurora Fwd Prices

Micron

Date

Low

21

April-June 21

1270

Main Buyers (This Week)

1

Techwool Trading

6249

2

Endeavour Wool

3790

3

Fox & Lillie

3119

4

Australian Merino

3090

5

Tianyu Wool

2472

6

Modiano (Aust)

2418

Eastern Market Indicators (AUD cents/kg clean)

1300 cents é 15 cents compared with 26/03/2021

Northern Market Indicators (AUD cents/kg clean)

1369 cents é 13 cents compared with 26/03/2021

   AUD/USD Currency Exchange

0.7608 é 0.0002 compared with 26/03/2021


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