Weekly Market Reports


22 May 2020

admin Macwool - Friday, May 22, 2020

 WEEKLY MARKET REPORT 

Week Ending 22nd May, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S47/19

This Week

M47/19

Last Sale

S46/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1625

1601

1683

-58

2380

-755

18

1473

1467

1517

-44

2317

-844

19

1339

1354

1391

-52

2163

-824

20

1278

1296

1332

-54

2149n

-871

21 1255n 1284 1305n -50 2129n -874

28

580n

576

576 (M)

0 (M)

1071 (M)

-495 (M)

30

-

450n

450 (M)

0 (M)

888 (M)

-438 (M)

MC

823n

856n

795n

+28

1019

-196

MARKET REVERTS TO ‘BAD OLD DAYS’!!

Was the one week wonder just that? Looking at the market report from Melbourne on Tuesday one could be forgiven that the falling market was behind us as the 20+ cent rise in >19.5s and cardings was the start of a recovery. On the other side of the continent, however, hopes were dashed as Fremantle’s market fell by 23 cents and, as Sydney joined in on Wednesday, both eastern seaboard centres fell to debunk the myth of a market that had bottomed out. By week’s end the AWEX EMI gave up another 24 cents to 1155 completely wiping out last series’ gains. In US$ terms the descending trend was offset by the rise in the FRX of 1.25% which would’ve contributed to the falling market - just a 7cent decline to 756. Merino fleece indicators fell 45 to 65 cents while skirtings had similar losses of 30 to 50 cents. Cardings bucked the cheaper trend as all types in this sector were quoted 20/40 dearer, the MCI up by 28 cents TO 823 while XBs were in buyers’ favour.

It was a very different IWTO Congress that was held this week. Scheduled to be held in China then rescheduled to Belgium it was moved to a digital platform due to the ongoing travel restrictions. One session of interest was the Market Intelligence session in which several speakers reported. Chris Wilcox from the Nat Council of Wool Selling Brokers spoke of the awful economic conditions and low consumer confidence around the globe and that all sectors of the wool pipeline from early stage processors to garment and interior textile manufacturers had seen a massive drop in  production since the new year and a sharp rise in stock levels except garment making and the recovery in raw wool demand in the near term is very limited. Madam Peng Yanli from the China Wool Textile Association also painted a very grim picture. Production of wool fabric and yarn fell by 25% in the first 3 months of 2020 in China due to domestic and global collapse in demand. This led to the value of their wool textile and garment exports to fall more sharply in the 1st quarter of the year than during the GFC in 2008. This led to a large number of their mills capacity utilisation fall below 50% but a significant number are returning  to 80% capacity as domestic demand recovers and conditions improve slowly in the textile industry but there are still many challenges ahead as cancelled retail orders offshore and tight restraints on working capital will slow the recovery. A full video of all speakers can be seen on the IWTO’s Facebook page or their YouTube channel at www.youtube.com/user/IWTOCHANNEL/featured.

Drop into our Dubbo office or Macrural at Brewarrina to pick up free woollen jumpers to keep your poddy lambs warm this winter.

      All colours and sizes for both male and female lambs!

 Southern Aurora Fwd Prices            

Micron

Date

Low

21

July 20

1275

Main Buyers (This Week)

1

Tianyu Wool

2943

2

Techwool

2295

3

Fox & Lillie

1296

4

Endeavour Wool

1237

5

United Wool

968

6

Michell Aust.

893

Eastern Market Indicators (AUD cents/kg clean)

1155 cents ê 24 cents compared with 15/05/2020

Northern Market Indicators (AUD cents/kg clean)

1193 cents ê 37 cents compared with 15/05/2020

AUD/USD Currency Exchange

0.6549 é 0.0073 compared with 15/05/2020

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