Weekly Market Reports


29 January 2021

admin Macwool - Friday, January 29, 2021

WEEKLY MARKET REPORT

Week Ending 29th January, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S31/20

This Week

M31/20

Last Sale

S30/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2144

2118 2012
+132 2038 +106

18

1780

1781

1651

+129

1893

-113

19

1537

1533

1396

+141

1795

-258

20

1340

1349

1230

+110

1753

-413
21 1273 1267 1163n +110 1731n -558
 26 785n 793n 715n +70 1081n -296

28

531n

541

461n

+70

803n

-272

MC

906n

911n

818n

+88

1114n

-208

BIG JANUARY LIFT IS DELIVERED AGAIN!

Melbourne’s dearer market on the final day of last week’s sales was just a taste of what was to come this week as all buyers unanimously were predicting a dearer market by at least 30 cents. This would have the market in the north rise by a minimum of 60 cents as we were well behind the Melbourne stand-alone market of last Thursday when some of their MPGs added up to 60 cents. From the opening lot prices skyrocketed with every fleece indicator in Sydney adding 100 to 140 cents to their previous values. The final day’s auction was more subdued with modest increases being recorded but, looking at some of the individual prices, some were better and some slightly cheaper than the quotes AWEX released after the sale. Most buyer sentiment was that the market “had the wobbles”. Still, by week’s end, it was a great result as the AWEX EMI climbed by 89 cents to 1291 cents with a 51 cent rise in US$ terms to 985 as the FRX fell by 1.5 cents to 76.25. All fleece indicators added 110 to 145 cents with virtually no type neglected and discounts for VM or any other fault shrinking as just 3.3% of the fleece offering in the north failed to sell. Skirtings were also swept up in the mad dash for wool as the large increases on the opening day were followed up by small gains in the final session but no hint of the market getting the jitters. Overall increases were 150 cents for the < 18 micron, < 2% VM types out to 19 micron jumped by 90 to 120 cents with the broader types looking 70 to 90 cents dearer. Of course, growers welcomed these substantial gains as just 36 bales-2.1%- failed to sell. Cardings also had major gains as the 3 centres’ MCIs are now all above 900 cents, 906 to 952 with the Sydney and Fremantle MCIs lifting by an average of 86 cents as all types in this sector (finer than 19 micron) added 100 to 130 cents with the broader selection 60/80 cents to the good. Crossbreds had their largest weekly rise since late October with 26.5 and finer adding 60 to 80 cents with the broader microns posting gains of 50/70 cents.

History tells us that for quite some years the market experiences a big lift in January. This year we had to wait till the final week of the month - but it happened. A 7.3% gain in the market for this series sees it at its highest point since mid-April with 19s and finer actually higher by as much as 459 cents (16.5 micron) with the broader wools up to 215 cents cheaper (21s). The recent pattern before Christmas when a big rise was on the market would react swiftly in the opposite direction and lose all the gains and momentum just as quickly. When the market has triple figure gains selling anything at the new level becomes almost impossible, 2 major buyers we spoke to yesterday said they hardly sold a bale on Wednesday night. This lack of sales became apparent in Fremantle late yesterday when the market gave up some of Wednesday’s gains - 20s and 21s now 65 and 90 cents behind the East coast levels with < 19.5 10 to 30 cents lower. This doesn’t auger well for next week as most forecasts are for a market to react in the negative hopefully not to the extent that we saw on several occasions pre-Christmas.

Traders and their Chinese counterparts led the price recovery this week. Bids well above the market were being received late last week and on Monday which quickly converted into instant and steep price rises in the opening session. The call for new business followed the rising market injecting further impetus into the gains. The smaller than anticipated offering of <40,000 bales and the depreciating FRX and demand from new forward and relatively prompt shipment orders also contributed to the (at times) frantic buying. 47,000 bales are on offer next week. Hopefully the EMI stays above 1250 cents.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Apr/May 21

1220

Main Buyers (This Week)

1

Techwool

4984

2

Endeavour Wool

3795

3

Fox & Lillie

3680

4

United Wool

3010

5

PJ Morris

2488

6

Kathaytex Aust.

2229

Eastern Market Indicators (AUD cents/kg clean)

1291 cents é 89 cents compared with 22/01/2021

Northern Market Indicators (AUD cents/kg clean)

1369 cents é 112 cents compared with 22/01/2021

   AUD/USD Currency Exchange

0.7631 ê 0.0142 compared with 22/01/2021

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