Weekly Market Reports


22 January 2021

admin Macwool - Friday, January 22, 2021

WEEKLY MARKET REPORT

Week Ending 22nd January, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S30/20

This Week

M30/20

Last Sale

S29/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2012

2038 1907
+105 2082 -70

18

1651

1693

1592

+59

1917

-266

19

1396

1428

1389

+7

1809

-413

20

1230

1266

1246

-16

1778

-548
21 1163n 1169n 1180 -17 1766 -603
 26 715n 720 721n -6 1111n -396

28

461n

483

460n

+1

838n

-377

MC

818n

871n

789n

+29

1145n

-327

MARKET CRACKS 1200 HELPED ALONG BY SUPERFINES!

The market continued on from the solid start of last week with all sectors of the market fully firm to dearer. The national catalogue was predicted to be 54,000 bales early last week but was reduced heavily to 44,250 by the close of selling in Melbourne on Thursday, a drop of 18%. The pass-in rate fell to 7.6% with the dearer market to see 40,880 bales sold. The AWEX EMI gained 30 cents (2.5%) to 1202 and 27 cents in US$ terms to 934 as the A$ ascended slightly (77.70c), a change of 0.25%. Emphasis was on the sub 18.5 micron types in both sale rooms with fleece types 17 and finer posting gains of 105 cents while 17.5 to 18s added 60/75 cents and 19.5 in buyers’ favour and broader microns -15 cents. Skirtings added some impressive numbers from the opening sale as 18s and finer lifted 60 to 90 cents with broader lots 20 to 40 dearer. The carding sector again performed well with the 3 centres averaging a 41 cent gain. The cut off point for gains was similar to their combing counterparts; 18 micron and finer gained 35 to 50 cents while broader types lifted by 20/30. Crossbreds also had a reasonable sale as 26 and finer were in buyers’ favour with broader lots up to 10 cents dearer. As was the case last week, growers were looking for more of an increase as 17% was passed-in.

Finer wools certainly look to be the flavour of the month. The push for < 18 micron types started before Christmas and has continued in earnest over the past 2 sales. Broader wools seem to be in a holding pattern with the difference between 16.5 and 21 micron in Melbourne 1,055 cents (2224 to 1169) - this gap a long term average price difference. The gap in July (Sale 1) was just 500 cents, 1694 to 1194. One reason given for the widening price differential is the change of micron profile over the past 12 months. With good seasonal conditions over a vast area of wool growing districts the clip has broadened up with sheep not suffering from drought conditions and wools 19 micron and broader becoming more abundant and less wool finer than 18 micron. This situation is a complete reversal to what was happening in the drought.

As has been the case for some time Chinese buyers and forward traders dominated the market along with their top-makers and indent buyers. Showfloor chatter centered around the potential for large Chinese government uniform orders being placed. This is in stark contrast to the trouble that other exporters are having with China as their government is one of our largest single customers. Enquiry for forward offers continue to flow from the sub-Continent and Europe but the successful conversion rate to written orders is a long way off normal support from these two important destinations. The recent announcement that the tariff-free quota in China for the import of clean Australian wool is to be increased by 5% is welcome news. The increase of 3,600 tonnes of clean wool is part of the scheduled increase of 5% each year until 2024 when the quota will reach 44,300 tonnes. The rest of the clip that is shipped to China attracts just a 1% tariff which sees in this financial year 38,300 tonnes of clean wool which equates to 333,000 greasy bales free of tariff.

Next week’s national offering is very similar to this sale, 44,000 bales. The market finished very strongly in Melbourne on Thursday when they sold in isolation. As the market stands at the moment, 16.5 to 20 micron is averaging 40 cents higher in Melbourne than Sydney with all participants expecting our market to catch up to Melbourne next week when sales resume.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Mar/Apr 21

1180

Main Buyers (This Week)

1

Techwool

5059

2

Endeavour Wool

4396

3

Tianyu Wool

3501

4

PJ Morris

2953

5

Fox & Lillie

2842

6

United Wool

2812

Eastern Market Indicators (AUD cents/kg clean)

1202 cents é 30 cents compared with 15/01/2021

Northern Market Indicators (AUD cents/kg clean)

1257 cents é 24 cents compared with 15/01/2021

   AUD/USD Currency Exchange

0.7773 é 0.0032 compared with 15/01/2021

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=746414&A=Trackback
Trackbacks
Post has no trackbacks.