Weekly Market Reports


2 July 2021

admin Macwool - Friday, July 02, 2021

 WEEKLY MARKET REPORT

Week Ending 2nd July, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S53/20

This Week

M53/20

Last Sale

S52/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2545

2578 2623
-78 1586 +959

18

2143

2163

2203

-60

1408

+735

19

1738

1758

1820

-82

1284

+454

20

1438

1423

1510

-72

1221

+217
21 1302n 1289 1380n -78 1200n +102
 26 - 795 798 (M) -3 (M) 816 (M) -21 (M)

28

490n

500

509n

-19

564 (M)

-64 (M)

MC

965n

955n

978n

-13

801n

+164

A RECOVERY SEASON ENDS ON A SOFT NOTE!!

As we forecast in last week’s report, the market may have reached its “Everest” for the moment. The slightly cheaper tone in the final session was a precursor for this series. The ongoing shipping delays that are tying up vital finances and predicted Sale 01 volumes of 55,000 bales (the largest sale since March, 2020, after the wool industry software provider was hacked forcing a cancelled sale) was enough to firmly put the brakes on the rising market for the time being. The AWEX EMI gave back 45 cents (3.07%) to 1423. The losses were similar in US$ terms, 38 cents (3.41%) to 1070 as the FRX finished fractionally lower at 75.2 cents. No sector of the market was immune from the cheaper trend as Merino fleece types fell 55 to 85 cents. Skirtings gave back 25 to 40 cents with the low VM (< 2.5%) with good specs less affected. The 3 centres’ carding markets had 3 different results: Sydney lost 13 cents, Melbourne was in sellers’ favour and Fremantle adding 30 cents to see all 3 MCIs averaging 965 cents. Crossbreds also lost ground by 10 to 20 cents for most types. The pass-in rate climbed to 21% but for the season was 5.4% lower than the previous season at 11%

It was a disappointing way to finish the season but a look at the numbers over the past year paint a picture of recovery that no-one would’ve predicted from what was a dire situation due to the pandemic. The market is 27.5% higher than 12 months ago - 1423 to 1116 with the low point of 858 in early September - the EMI now 60% higher than the low point. The market is 300 cents (38%) better in US$ terms and the FRX stronger by 6 cents. As the table above illustrates, all but XBs are higher than last year, especially < 19 micron with superfine wools at 2 year highs. There were 311,000 bales extra offered this season (1,782million) up by 21% with the $ amount at $2,246.72 million, up by $274million. The top price for the year was 4,900 cents for a 12.8 micron fleece bale sold in May. China completely dominated the market to purchase over 80% of the clip as India and Europe continue to build up their processing capacity but are not operating anywhere near full capacity yet. With vaccinations well on track in the northern hemisphere it is hoped by the end of 2021/early 2022 lockdowns and restrictions will be a thing of the past with all facets of life back close to normal and consumers spending money on woolen apparel to further enhance the farmgate price for wool. Next week is the opening sale of the new season with 55,000 bales rostered and exporters struggling to find enough enquiry and finance to buy at the current level. An EMI that can stay above 1400 will be a good result by this time next week.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Oct. 21

1300

Main Buyers (This Week)

1

Techwool

4612

2

Fox & Lillie

3488

3

PJ Morris

2361

4

Endeavour Wool

2252

5

Tianyu Wool

2243

6

United Wool

2097

Eastern Market Indicators (AUD cents/kg clean)

1423 cents ê 45 cents compared with 25/06/2021

Northern Market Indicators (AUD cents/kg clean)

1522 cents ê 42 cents compared with 25/06/2021

   AUD/USD Currency Exchange

0.7522 ê 0.0024 compared with 25/06/2021

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