Weekly Market Reports


28 August 2020

admin Macwool - Friday, August 28, 2020

 WEEKLY MARKET REPORT

Week Ending 28th August 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S09/20

This Week

M09/20

Last Sale

S08/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1448n

1438 1445 +3 1845 -397

18

1249

1228

1239

+10

1795

-546

19

1085

1062

1076

+9

1593

-508

20

991

979

1025

-34

1515

-524

21 976n 952 1016n -40 1499n -523
 26 645n 700 680n -35 1133n (M) -433 (M)

28

-

436

465n

-34 (M)

846 (M)

-410 (M)

30

-

368

428 (M)

-60 (M)

698n (M)

-330 (M)

MC

663n

624n

621n

+42

806n

-143

SMALL QUANTITY – SMALLER DEMAND!

The sorry state of the wool market was no more evident than this week as the market slipped further with only the 2 eastern seaboard centres in action. As we predicted the reduced weekly volume of just 20,500 bales - the smallest this season and the least offered since mid June - couldn’t sustain the market. The AWEX EMI lost another 16 cents to 926 with the fall identical in US$ terms (16 cents to 668). A reduction in the FRX by half a cent to 71.90 and the designated superfine sale in Sydney were not enough to keep the market from falling. With the finer superior style offering in Sydney, < 19 micron did show an ounce of resilience with the indicators up to 10 cents dearer with the odd lot attracting a premium up to 60 cents but 19s and broader dragged the overall market into the red as they fell by 10/55 cents. The story was similar for merino skirtings as the better style types were either side of firm while the broader/burrier types gave up another 20 to 30 cents. The carding sector bucked the downward trend of all other sectors and rebounded after 3 series of heavy losses (180 cents). LKS led the price recovery with gains of 40 to 70 cents while CRT/STN added 20 to 30 cents, a welcome rise after the recent battering they took. Crossbreds also contributed to the EMIs fall as all microns from 25 to 32 gave up another 20 to 60 cents. With some sectors of the market maintaining a ‘status quo’ or increasing in price the pass-in rate dropped sharply, to just 11%.

Chinese top-makers dominated buying lists with local trading exporters making some sort of impression across most types with the superior selection encouraging some interest from Italian mills on the very best types on offer. The bread and butter fleece wools from 19 to 22 micron (which was the easily traded and most used type) are struggling to capture any demand and continue to be out of favour with most processors. This is reflective of how current volume is unable to be moved swiftly through the supply chain.

The National Sheep Show and Ram Sale was held in Dubbo this week but under a Covid-19 affected format. Less studs were on show (34) and no commercial sheep on display or to be judged. There was no Supreme ram judged due to national travel restrictions not allowing any interstate champions to be on site to go up against the NSW champion. The auction was interfaced with Auctions Plus with 47 rams up for sale. Top price went to local stud, Roseville Park, with a sale topping price of $31,000 bought by Chris Bowman on behalf of a syndicate of 4 Australian and 1 NZ stud. Their draft of 8 rams averaged $9185. Other results included: Langdene, Dunedoo - 4 rams sold for a top of $10,000 to average $6125; Nerstane, Woolbrook - 1 ram sold for $6,000; West Plains Poll from Delegate sold 1 ram for $10,000; Adina, Cooma topped at $5,000 to average $3,500; Darriwell, Trundle sold 2 rams to average $6750 for a top of $10,000; and Coddington, Uardry achieved a top price of $3,500 to average $3,250. The 32 rams sold for an average $6155. Next week has all 3 centres in action with a catalogue of 33,000 bales. If more business isn’t forth-coming the market will struggle to stay above 900 cents.

Southern Aurora Fwd Prices            

Micron

Date

Low

21

Oct/Nov 20

925

Main Buyers (This Week)

1

Endeavour Wool

2584

2

Techwool

1794

3

United Wool

1758

4

Tianyu Wool

1714

5

Fox & Lillie

1399

6

Kathaytex

1024

Eastern Market Indicators (AUD cents/kg clean)

929 cents ê 16 cents compared with 21/08/2020

Northern Market Indicators (AUD cents/kg clean)

982 cents ê 9 cents compared with 21/08/2020

   AUD/USD Currency Exchange

0.7193 ê 0.0052 compared with 21/08/2020

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