Weekly Market Reports


23 September, 2020

admin Macwool - Friday, October 23, 2020

 WEEKLY MARKET REPORT

Week Ending 23th October, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S17/20

This Week

M17/20

Last Sale

S16/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1846

1820n 1777
+69 1922 -76

18

1622

1615

1543

+79

1865

-243

19

1419

1390

1309

+110

1789

-370

20

1292

1283

1177

+115

1748

-456
21 1243n 1204 1140n +103 1743n -500
 26 883n 886n 753n +130 1160n -277

28

663n

673

520n

+143

899n

-236

MC

811n

816n

763n

+48

987n

-176

SIX MONTH HIGH!!

An explosive opening to this week’s sale as the 1st day’s rise of 123 cents (up to 1240) was 2nd only to the 130 cent daily climb in September, 2019 (S11) in the 20 years of market reporting by AWEX. Prices did soften in the final session in what was quite a week for wool sales. By week’s end the AWEX EMI had added 102 cents to finish at 1219 - its highest point since late April - this surge in the market now stretching back 7 weeks to see a gain of 360 cents (38%). In US$ terms the 1.2% fall in the FRX assisted in holding the EMI in check somewhat rising by 62 cents to 863. Rises for fleece wools ranged from 70 to 130 cents while the skirting selection had a very tight price rise with all types increasing by 100 to 110 cents. Cardings also kept up with their merino combing counterparts and didn’t really suffer any downward adjustment in the final session to add 30 to 80 cents across all types in this sector. Each centre MCI averaged a 45 cent rise to see the 3 MCIs well and truly aligned in price (811 to 816 cents). Crossbreds were also swept up in the price rising frenzy but unlike the merinos which fell on the final day - they added to their values to finish the sale up by 90 to 130 cents (15 to 30%).
After last week’s hefty rises (95 cents) and the 100 cent lift a month ago, all participants were wondering when the inevitable correction would come as it would be a case of when not if. There was a downward price adjustment after the big lift 4 weeks ago, but the recovery was swift - just 1 sale to recover the losses. After the big rise last week many thought this sale would be under pressure but show floor talk of 50 cents or more was commonplace - even with quantities growing by over 5,000 bales after last week’s sale had concluded. It’s always a given that when the wool market rises so rapidly there is a rush to offer wool. Next week is no exception, week to week forecasts have gone up by 6.5% (2,150 bales) from last Monday to this Monday - the latest figure being 44,000 bales up by 20% (8,700) from earlier in the week. Buyers have said for months now that with the reduced demand, the market can only absorb up to 35,000 bales/week - so next week’s quantity could be problematical for the increased volume at current price levels. Since the price recovery started in September the average weekly offering has been 26,800 bales - a big factor in why the market has jumped to its current level from the low point of 858 cents in early September. The volatility over the past 12 to 18 months has been dramatic, the EMI has moved more than 30c/kg on 40% of the auction days so far this season. For a smooth upward trajectory to continue we need a steady increase of demand - not all in and then sitting on the fence as has been the pattern for a long time. Demand for sweaters and uniforms out of China is good hence the latest price rises. Talk that Indian processors look to be recommencing work while Europe is still battling the 2nd wave of the Pandemic leaves us with key markets outside of China struggling to sell woolen garments and fabrics but there is light at the end of the tunnel.

A few ram sale results: Grogansworth at Bowning cleared 97% for a top price of $7,500 averaging at $2,625; Merrignee at Boorowa averaged $2,260 clearing 93% for a top of $4,500; Grassy Creek at Reids Flat sold all 152 rams to average $2,970 with a top of $9,000. Egelabra at Warren also achieved a top of $9,000 averaging $2,975 for all 158 rams offered and Glenwood at Wellington sold all but 2 of their 140 rams penned to average $3,100 with a top of $12,000.

The softer market late this week looks to continue next week under the weight of the largest catalogue since early August.


        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Nov/Dec 20

1180

Main Buyers (This Week)

1

Techwool Trading

4,703

2

Endeavour Wool

3,736

3

Lempriere (Aust)

2,248

4

United Wool Co

2,078

5

Fox & Lillie

2,006

6

Australian Merino

1,877

Eastern Market Indicators (AUD cents/kg clean)

1219 cents ê 21 cents compared with 20/10/2020

Northern Market Indicators (AUD cents/kg clean)

1278 cents ê 19 cents compared with 20/10/2020

   AUD/USD Currency Exchange

0.708 é 0.0038 compared with 20/10/2020

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