Weekly Market Reports


3 July 2020

admin Macwool - Friday, July 03, 2020

 WEEKLY MARKET REPORT

Week Ending 3rd July, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S01/20

This Week

M01/20

Last Sale

S52/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1586

1598

1592

-6

2133

-547

18

1408

1409

1401

+7

2107

-699

19

1284

1291

1276

+8

2024

-740

20

1221

1219

1212

+9

2009

-788

21 1200n 1194 1197n +3 2022n (M) -828 (M)
 26 810n 816 810 0 1315n -505

28

-

564

551(M)

+13 (M)

1050 (M)

-486 (M)

30

-

466

466 (M)

0 (M)

835 (M)

-369 (M)

MC

801n

826n

814n

-13

981

-180

OFF TO A STEADY START!

With very little demand to support even a national catalogue of as few as 20,000 bales, most people thought this week’s opening sale of the season with 30,000 bales on offer was going to be a bridge too far for exporters. As we predicted last week, if new business wasn’t forthcoming, the market could’ve dropped below 1100 cents. Luckily this wasn’t to be as fresh enquiry led to spatterings of business being written. Also, with the 3 week winter recess almost upon us it was enough to keep the market’s head above water. Two solid days of selling saw the AWEX EMI add 6 cents to its value to 1116. In US$ terms the move was minimal (a 2 cent lift to 772) as the FRX traded in a range from 68.5 to 69.2 cents. All fleece microns recorded single figure shifts - 6 cents for 17s and finer and 3 to 9 cent increases for all others. Growers were happy to take the money as 98% of fleece was cleared in Sydney. Skirtings had a firm sale as all types were tending in buyers’ favour with < 16.5 micron “B” fault, best style skirtings were 30 cents dearer. Cardings continued to slide as the MCI fell by 13 cents to 801 undoing all the rises from a month ago. Crossbreds added 20 to 30 cents to their previous quotes.

Any rise is a good rise! The final 3 weeks of the season had seen the market lose 73 cents to come close to falling below 1100 cents but this week’s mini recovery might delay this unfortunate milestone mark. As was the case in May, a bit of business can lift or see the market stabilise when volumes are not large enough to fill the demand but, on the other hand, when the market is treading water or no demand is in the market even small national catalogues are too big for the market to handle. According to most exporters, a recovery in demand looks to be a long way off. Some restrictions are being lifted in some European countries, a sign that life may be returning to some form of normality but there are still many countries where the pandemic is in its 2nd wave and restrictions are being re-enforced and the brakes being put on economic recovery. As far as employment returning to pre-Covid-19 levels, it could be 12/18 months before the degree of employment is enough to allow economies to get back to full economic production. How quickly consumers feel they are able to spend their discretionary income on non-essentials will be the driver as to when the demand picks up for woolen products and the farm gate price improves.  We must ram home our advantage of a clean, green, renewable, sustainable and traceable product. If most growers were surveyed now this would be the message they would want to be conveyed to consumers when demand picks up. The 2nd sale of the season will take place next week, then we head into a 3 week winter recess. The largest sale since late March (36,000 bales) will be on offer. Hopefully there is enough enquiry about to keep the market where it is and, with the looming recess, limited opportunity to buy wool for 3 weeks.  

Southern Aurora Fwd Prices            

Micron

Date

Low

21

Aug/Sept 20

1170

Main Buyers (This Week)

1

Techwool

4314

2

Endeavour Wool

3704

3

Tianyu Wool

2301

4

Lempriere

2259

5

Aust. Merino

1809

6

United Wool

1696

Eastern Market Indicators (AUD cents/kg clean)

1116 cents é 6 cents compared with 26/06/2020

Northern Market Indicators (AUD cents/kg clean)

1159 cents ê 1 cent compared with 26/06/2020

   AUD/USD Currency Exchange

0.6920 ê 0.0022 compared with 26/06/2020

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