Weekly Market Reports


29 May 2020

admin Macwool - Friday, May 29, 2020

 WEEKLY MARKET REPORT 

Week Ending 29th May, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S48/19

This Week

M48/19

Last Sale

S47/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1653

1620

1625

+28

2409

-756

18

1498

1495

1473

+25

2361

-863

19

1363

1373

1339

+24

2211

-848

20

1296

1305

1278

+18

2203

-904

21 1275n 1299 1255n +20 2127 -922

28

600n

596

576 (M)

+20 (M)

1123 (M)

-527 (M)

30

-

459n

450 (M)

+9 (M)

935 (M)

-476 (M)

MC

843n

872n

823n

+20

1036

-193

LIGHT AT THE END OF THE TUNNEL??

Buyer sentiment moved to the positive this week as all sectors of the market posted gains. The AWEX EMI crept 15 cents higher to 1170. The appreciation of the FRX by 1 cent to 66.5 saw the market increase by 21 cents to 777 in US$ terms. The price increases were very even across the merino microns. 18 to 30 cents covered most types with some of the best lots commanding higher premiums as just 4% of the fleece offering was passed-in in Sydney. Finer skirtings < 17.5 micron also gained 20/30 cents with broader types unchanged. Cardings continued to add to last series’ gains by posting a 20 cent rise in the MCI, all types were 20 to 50 cents higher. Crossbreds also looked 15 to 20 cents better.

Could the market finally reach the bottom? May saw the EMI have 2 positive and 2 negative weeks to trade between 1179 and 1155 just a 24 cent movement. A solid month when compared to the wild fluctuations of January, March and April with February also having very little price shift (13 cents - 1581 to 1568). The news from China keeps improving as their industrial economy had a strong bounce back in April after facing the first 3 months of the year experiencing their first economic quarterly contraction in history. Retail and investment figures are still weak but did improve from March to April. Year-on-year retail sales were 7.5% lower for April 2020 to April last year, a vast lift from the March figures of 16% lower this year compared to 2019. Consumer spending should improve by July/August north of the Equator as apparel producers have started to look at cloth samples again and purchasing managers are enquiring on prices at these levels - a good sign for the busier Autumn/Winter period in the northern hemisphere. Retailers could be faced with a dilemma of trying to shift out-of-date/fashion expensive stock at a loss to make way for new colours, designs and styles that will be hitting retailers for their busiest time of the year.

National offerings have averaged 22,300 bales since Easter and, with just a few new and unfilled orders in the market over the last month, with limited quantity available prices can react quickly at this end of the pipeline but buyers are still reporting hesitation at the other end to book up large volumes. Demand is the key ingredient to ensuring a farm-gate price rise and that will not happen till tens of millions of people around the globe return to work and are able to start spending their disposable income again.

Drop into our Dubbo office or Macrural at Brewarrina to pick up free woollen jumpers to keep your poddy lambs warm this winter.

      All colours and sizes for both male and female lambs!

 Southern Aurora Fwd Prices            

Micron

Date

Low

21

July 20

1275

Main Buyers (This Week)

1

Techwool

2594

2

Endeavour Wool

2285

3

Fox & Lillie

1275

4

Aust. Merino

1154

5

PJ Morris

1122

6

Lempriere

1018

Eastern Market Indicators (AUD cents/kg clean)

1170 cents é 15 cents compared with 22/05/2020

Northern Market Indicators (AUD cents/kg clean)

1212 cents é 19 cents compared with 22/05/2020

AUD/USD Currency Exchange

0.6641 é 0.0092 compared with 22/05/2020

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