Weekly Market Reports


25 September 2020

admin Macwool - Friday, September 25, 2020

WEEKLY MARKET REPORT

Week Ending 25th September, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S13/20

This Week

M13/20

Last Sale

S12/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1611

1641n 1474 +137 2003  -392

18

1407

1398

1279

+128

1965

-558

19

1208

1231

1096

+112

1871

-663

20

1104

1104

994

+110

1843

-739
21 1075n 1073 956n +119 1828n -753 
 26 668n 670n 623n +45 1240n -572

28

489n

483

466n

+23

988n

-499

MC

723n

703n

673n

+50

993n

-270

A THREEPEAT - IS THERE MORE IN STORE??

The talk of the anticipated rising market late last week came to fruition but much more than anyone was prepared to call. A frantic opening session was followed by a more measured approach on the final day but still the market did what growers had been yearning for, a big lift in prices. The AWEX EMI climbed by a massive 99 cents to 1036 to add up to a 178 cent lift (21%) over the past 3 weeks. The gain in US$ terms was 53 cents to 739 as the falling FRX to 71.35 certainly helped. This series’ opening day’s rise of 59 cents (6.3%) was the largest daily gain in 12 months and the largest weekly lift over the same period. This recovery goes part of the way to cancelling out the 27% (276 cents) fall the market suffered through August and early September. Merino fleeces all rose by triple figures, 100 to 140 cents with no type neglected. Skirtings also rocketed back to reasonable levels with < 18 micron adding 120/180 cents and broader lots 80 to 100 cents to the good. Cardings continued to claw back their lost money as the 3 centres’ MCIs averaged 60 cent increases. All descriptions added 50 to 130 cents depending on style, micron and VM.

The new business that was written 3 weeks ago has kept coming to most people’s surprise. One buyer we spoke to said the enquiry on Tuesday night was the highest level for 18 months thus giving exporters a new aura of confidence to do more business. Local traders led the recovery with Chinese indent orders and overseas top-makers sniffing around the edges. In other good news European and Indian orders were in the market with Italian mills picking the eyes out of this week’s designated Superfine sale selection (albeit at small volumes) but the more enquiry coming normally converts to fresh business being written and increased competition. The same buyer seems to think that these levels could be the base from which the market can go forward providing growers don’t flood the market with wool held in store that has been waiting for price increases that we have seen over the past 3 sales.

Ram sales continue with great results. This week’s sales have gone like this: Bella Lana at Wellington cleared all 125 rams for a top of $10,000 to average $2,490; Gullendah at Yeoval offered a mix of Dohne and Polls (140) to sell all but 1 poll ram. The Dohne’s averaged $3,115 to top at $5,000 twice and the Polls averaged $2,100 with 2 rams selling for $4,000. Tara Park at Boorowa achieved a top price of $10,500 to average $2,520 selling all but 2 rams. Trynow at Goolma had a top price of $1,600 5 times for an average of $1,070 to clear 86%; Poll Boonoke and Wanganella at Conargo sold all 200 rams to average $3,470 with a top of $13,000; also in the Riverina at Pooginook, Jerilderie, the mix of Polls and horned rams had a 98% clearance with a top of $7,000 for a poll ram with the top merino making $4,000 with an overall average of $2,625; Lachlan Merinos at Forbes sold all their 140 rams with a top price of $11,500 to average $4,075; a $10,500 top price was achieved by Coddington Uardry Poll at Dunedoo with a total clearance to average $1,740; and Calga Dohne stud at Coonamble sold all 73 rams for a $4,000 top price twice and an average of $2,375. Next week’s catalogue has grown to 33,200 bales. Will the market hold at these levels??

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Nov/Dec 20

960

Main Buyers (This Week)

1

Techwool

3656

2

Endeavour Wool

3286

3

Fox & Lillie

2420

4

Aust. Merino

2074

5

Lempriere

2039

6

Modiano

1768

Eastern Market Indicators (AUD cents/kg clean)

1036 cents é 99 cents compared with 18/09/2020

Northern Market Indicators (AUD cents/kg clean)

1086 cents é 93 cents compared with 18/09/2020

   AUD/USD Currency Exchange

0.7133 ê 0.0185 compared with 18/09/2020

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