Weekly Market Reports


25 June 2021

admin Macwool - Friday, June 25, 2021

 WEEKLY MARKET REPORT

Week Ending 25th June, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S52/20

This Week

M52/20

Last Sale

S51/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2623

2606n 2568
+55 1592 +1031

18

2203

2198

2169

+34

1401

+802

19

1820

1819

1810

+10

1276

`+544

20

1510

1488

1500

+10

1212

+183
21 1380n 1379 1356n +24 1197n +183
 26 - 798n 765 (M) +33 (M) 795n (M) +3 (M)

28

509n

521

493n

+16

551 (M)

-30 (M)

MC

978n

951n

976n

+2

814n

+164

HAS THE MARKET PEAKED??

The wool market had another positive series to see the AWEX EMI post a 20 cent gain to 1468. This most likely could be the peak as the market did in fact lose 4 cents in the final session from its high point of 1472 cents on the opening day. Showfloor talk amongst the buyers that the top of the market was close was spot on as another frantic start to sales was tempered by the close and the second day saw losses of 5/10 cents for 18.5 to 20 micron whereas 17 and finer still added to their values. By week’s end 18.5 to 22 micron rose by 10 to 25 cents with finer types 35 to 70 cents better with some lots over 100 cents higher. Once again the clearance rate for fleece types was high at 98.4% with just 124 bales not sold. Skirtings enjoyed another good sale as increases of 20 to 40 cents was common for all types in this sector with no hint of a softer tone on the final day. After 5 weeks of rises (totaling 95 cents) the carding sector was just in sellers’ favour to add 2 cents to 978 as the opening day’s gains were barely maintained in the final session. Crossbreds kept pace with their merino counterparts with all microns adding 10 to 30 cents. As mentioned earlier, the EMI gained 20 cents to 1468 and in US$ terms just a 4 cent rise to 1108 due to the FRX rising on Tuesday night but week to week was 0.75% lower with the A$ low point at 74.85 over the weekend with some exporters saying if the FRX didn’t fall the EMI could’ve fallen by 10/20 cents.

With just the 2 East Coast centres operating, this presented the smallest national catalogue since October (33,300). This small volume coupled with the FRX rates favouring exporters was an opportunity for the market to keep forging ahead as it had done for the past 7 sale days (adding 130 cents) but buyers were indicating the market had run out of steam. Shipping issues continue to delay wool on the water and at port thus tying up critical finance to keep buyers purchasing wool. Finances have been stretched for some time with unusually large offerings for winter, financial strain is something buyers have become accustomed to lately. With 3 sales before the winter recess, buyers and their bank accounts are looking forward to the break to replenish themselves and hopefully top up their money pits!

Buying honours were evenly spread amongst topmakers, manufacturers and local traders with the softer FRX helping overseas users in dealing with a similar price in their local currency. Next week sees the final sale of the season with all 3 centres in action with a catalogue of 44,400 bales on offer. Buyers are predicting some sort of price correction to continue on from the final day this week but, to what extent is still unknown. FRX movements will be critical in determining how the market will fare.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Oct. 21

1300

Main Buyers (This Week)

1

Techwool

5033

2

Fox & Lillie

3732

3

Endeavour Wool

2701

4

Tianyu Wool

2313

5

Modiano

2009

6

Lempriere

1860

Eastern Market Indicators (AUD cents/kg clean)

1468 cents é 20 cents compared with 18/06/2021

Northern Market Indicators (AUD cents/kg clean)

1564 cents é 21 cents compared with 18/06/2021

   AUD/USD Currency Exchange

0.7546 ê 0.0074 compared with 18/06/2021

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