Weekly Market Reports


2nd October, 2020

admin Macwool - Friday, October 02, 2020

 WEEKLY MARKET REPORT

Week Ending 2nd September, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S14/20

This Week

M14/20

Last Sale

S13/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1591

1572n 1611 -20 1872 -281

18

1382

1363

1407

-25

1840

-458

19

1160

1136

1208

-48

1739

-579

20

1049

1025

1104

-55

1699

-650
21 1010n 1003 1075n -65 1684n -674 
 26 678n - 668n +10 1150n -472

28

469n

465

489n

-20

908n

-439

MC

730n

696n

723n

+7

1005

-275

EMI UNDER 1,000 BUT JUST FOR ONE DAY!!

The wool market was unable to sustain its mini recovery this week as prices softened across most sectors. A combination of factors from softer enquiry levels, urgency for prompt shipment abating and the increase in volume by 7,700 bales to 31,000 (the largest catalogue since mid August) was the impetus for buyers to take their foot off the pedal and take a step back from the buying patterns of the past 3 sales. The AWEX EMI retreated by 40 cents to 996 (-4%) and gave up 30 cents in US$ terms to 709 as the FRX softened by a third over the course of the sale to 71 cents to have nil impact on price direction. All fleece types lost 20 to 60 cents, the discounts followed the microns, increasing as the wools got broader. The skirting selection followed the same pattern as their fleece counterparts - just a 20 cent fall for < 17 micron as broader types across all descriptions fell by 40/60 cents. Cardings had a mixed sale as < 17.5 LKS gave up 30/40 cents while the broader types added 10 to 15 cents with merino and XB lambs gaining 20 to 50 cents with STN/CRT fully firm. These movements saw the MCI up by 7 cents to 730. Crossbreds opened the sale on a dearer note (+10 cents) but 28s and coarser lost 30 cents in the final session to finish the sale cheaper. As the sale progressed buying became more widespread across all types. Merino fleece was dominated by traders with all sectors in room 2 (skirtings, cardings and XBs) coming under more pressure from 1st stage manufactures and processors - a good sign of interest being reignited down the processing pipeline. The light at the end of the tunnel is still on the dim side but may become brighter in the run to Christmas. Intertextile Shanghai was held last week with Chinese fabric producers showing off their collections for Autumn/Winter 2021-22 with good levels of enquiry for samples and price requests. This does not lead to a full blown recovery but a bumpy ride with some speculators talking more upside soon as the August slump was an over-reaction, but on the flipside the 3 week rise we saw was over-reaction in the other direction - who’s right or wrong?? Recent HIS market surveys of PMIs (purchasing managers intentions) the US services sector fell from a 17 month record high but manufacturing was up on the previous month. This was a similar scenario in Europe.

AWTA released its September testing figures with a surprising jump of 7.8% more wool tested than September 2019.This could be a result of some growers shearing early to avoid a clash of shearing with (hopefully) the big harvest just around the corner. The cumulative figures for the 1st quarter of the year show an identical fall (7.8%) in wool tested when compared to last season 57.5mkg to 62.4mkg.

Some ram sale results from the past week: Allendale at Wellington had a top price of $4,000 to clear 87% with the average increasing by $85 to $1870; Cassilis Park Cassilis offered a mixture of Polls, Horns and Megas to sell all but 1 ram from 80 offered to average $2,145 with a top price of $6,400; Dunbogan at Elong sold all 56 rams on offer to average $2,245 with a top of $4,000 four times. Langdene at Dunedoo cleared 98% of their draft of Polls and Horned rams to top at $6,500 twice to average $3,230 up by $200 on last year; Bogo at Yass sold all 169 rams with a top of $5,000 to average $2,805; Richmond at Quandialla sold all 110 rams to average $2,275 up by $336 from last year with a top of $10,000. A $15,000 top price was achieved by One Oak Poll at Jerilderie to average $2,435 clearing 95%; also, at Jerilderie, Willandra had a top of $13,000 to average $2,735 to clear 91%. Show floor chatter is for a firm market next week with the EMI to break through 1000 cents again.

        Southern Aurora Fwd Prices            

Micron

Date

Low

21

Nov/Dec 20

990

Main Buyers (This Week)

1

Techwool

3855

2

Lempriere

2646

3

Endeavour

2570

4

Aust. Merino

1873

5

Fox & Lillie

1721

6

Tianyu

1114

Eastern Market Indicators (AUD cents/kg clean)

996 cents ê 40 cents compared with 25/09/2020

Northern Market Indicators (AUD cents/kg clean)

1053 cents ê 33 cents compared with 25/09/2020

   AUD/USD Currency Exchange

0.7116 é 0.0017 compared with 25/09/2020

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