Weekly Market Reports


23 April 2021

admin Macwool - Friday, April 23, 2021

 WEEKLY MARKET REPORT

Week Ending 23rd April, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S43/20

This Week

M43/20

Last Sale

S42/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2274n

2263n 2148
+126 1749n +525

18

1916

1916

1833

+83

1593

+323

19

1595

1576

1546

+49

1483

+108

20

1333

1315

1308

+25

1443

-110
21 1262n 1239 1250n +12 1438n -176
 26 800n 794n 800n (M) -6 (M) 865 (M) -65 (M)

28

515n

528

510n

+5

674n

-159

MC

897n

910n

877n

+20

865n

+32

FINER WOOLS LEAD THE WAY

The solid finish to wool sales in Melbourne and Fremantle late in last week’s series gave hope that the market could reverse last week’s cheaper trend. All the talk on the showfloor was for a dearer market with emphasis on the sub 19 micron types with broader spec wools just holding their own or in buyers’ favour depending on how good or bad test results were. The market exploded into action from the opening lot with all Merino microns adding to their value regardless of micron, VM or mid-breaks with 17s in Sydney jumping 108 cents on the opening day. The market did steady in the final session as finer microns added to their values with broader types unable to hold the previous days increases to lose 10/15 cents. By week’s end 18.5 and finer added 70 to 130 cents with 19s and broader lifting by 10 to 50 cents. Skirtings also commenced the sale in a hurry with rises of 30/40 cents across the board with < 17.5 micron with < 2% VM 80 to 100 cents dearer. The final session saw the urgency come out of the sale room as 18 micron and coarser types give back 15 to 20 cents from the previous day. Cardings added money to their solid sale last week to average a 20 cent gain across the 3 centres with their MCIs now averaging 910 cents as all types in this sector were 20 to 50 cents higher. The crossbred sector had the quietest sale as quotes were in sellers’ favour for most types in this sector. The AWEX EMI added 21 cents to 1312 (16 cents in US$ terms) to 1011 as the FRX barely moved from 77 cents. Even with the rising market the pass-in rate was still on the high side at 10.7%.

Fine types continued their trend of recent months getting dearer while broader microns look to be in some sort of holding pattern with very little price change. As we have stated recently, with the good season pushing wool coarser by 1 to 1.5 micron, the volume of sub 19s is decreasing and broader micron wools are on the increase, thus the less volume in the finer sector of the market is pushing prices higher and the bigger volume and heavier VM levels of coarser types are causing buyers to struggle to place these wools despite steady enquiry and the stable FRX. China led the enquiry for new business with spatterings of new business written outside China with these few new containers immediately assisting the market. Of course the market is dependent on consumer demand with the easing of restrictions as vaccines get rolled out, encouraging more people to spend money which will be the key driver to lifting demand. Global economies will grow in 2021 but not as quickly as the IMF predicted as some countries vaccine rollouts are slower than anticipated and some countries experiencing more waves of Covid-19 such as India and Brazil. China, on the other hand, looks to be in recovery mode far more than other northern hemisphere countries. Their economic growth was 18% higher in the 1st quarter of 2021 than in 2020 when their economy shrank by 6%. Industrial output for March was up by 14% and retail sales grew by a massive 43% from March 2020.  With the rising market national volumes have grown to 50,800 bales with some sectors expecting a slight downward price adjustment.

Southern Aurora Fwd Prices

Micron

Date

Low

21

July 21

1250

Main Buyers (This Week)

1

Techwool

5422

2

Fox & Lillie

3668

3

Endeavour Wool

3501

4

Lempriere

2601

5

Tianyu Wool

2317

6

Aust. Merino

1982

Eastern Market Indicators (AUD cents/kg clean)

1312 cents ê 21 cents compared with 16/04/2021

Northern Market Indicators (AUD cents/kg clean)

1398 cents ê 43 cents compared with 16/04/2021

   AUD/USD Currency Exchange

0.7708 é 0.0400 compared with 16/04/2021

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