Weekly Market Reports


30 April 2021

admin Macwool - Friday, April 30, 2021

 WEEKLY MARKET REPORT

Week Ending 30th April, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S44/20

This Week

M44/20

Last Sale

S43/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2304

2305 2274n
+30 1697 +607

18

1948

1951

1916

+32

1518

+430

19

1637

1648

1595

+42

1414

+223

20

1365

1367

1333

+32

1362n

+3
21 1277n 1300 1262n +15 1370 (M) -70 (M)
 26 - 793n 794n (M) -1 (M) 861 (M) -68 (M)

28

515n

520

515n

0

661n

-146

MC

922n

917n

798n

+25

840n

+82

LARGE QUANTITIES, RISING A$, NO WORRIES!!

With the anticipated big offering this week of over 50,000 bales some in the trade were fearful that the extra volume catalogued would be too much for buyers and exporters to handle. After last series’ good gains, especially for sub 19s, the rush to capture the rising market added 6,000 extra bales to the roster. The market started on a solid but tentative note in Sydney in the opening session with Melbourne adding double digit gains to almost all MPGs. Momentum built on the second day as gains ranged from 10 to 50 cents depending on centre and micron. By week’s end rises of 30 to 40 cents covered all merino fleece microns bar 21s which gained 15 cents. Skirtings followed their fleece counterparts to record 20/30 cent lifts on most types with < 18.5 micron and < 2.5% VM 35 to 50 cents to the good. Cardings also kept up last sale’s momentum as the MCI rose by 25 cents to 922. All types in this sector recorded gains of 10 to 40 cents. Crossbreds had an up and down sale to finish the series about 10 cents cheaper. The AWEX EMI jumped by 30 cents to 1342 (2.3%), its largest weekly gain since mid February. In US$ terms the rise was just as impressive, 34 cents to 1045 (3.35%) as the FRX strengthened by 1 cent to 78 cents. Growers were happy with the rising market as the pass-in rate was the lowest since the end of January at 6.4%

The market came under more pressure this sale as buyers scrambled to secure wool. Medium types were on par with the finer wools as far as gains were concerned all lifting by an average of 35 cents. Buyers looked for value in the rising market and the lower types benefitted as they became buyers’ “target wools” to try and cheapen up their orders. This strategy did not go to plan as some of these types cost just as much as some “straight types” by the end of the sale. The smatterings of business that have prevailed in the market outside of China for some time now became even more prevalent this series as the extra enquiry and written business from many major players in India and Europe (catching the Chinese unaware) pushed the market to new levels even with the largest offering since mid March and the ascending FRX. When these 2 factors combine it is a distinct disadvantage to Aussie woolgrowers unless demand outstrips all other factors as we saw this week. It is great to see some competition to the Chinese juggernaut that buys 80% of our wool and has been a very resilient customer and almost solely responsible for the recovery in the wool market since the low point of 858 cents in early September - a massive 64% gain to date.

Is this the start of the recovery everyone has been waiting for?? Signs are promising that the post Covid-19 global economy is growing but a full recovery is some time off. Signs for a solid market next week are good as Melbourne and Fremantle finished on a dearer note on Thursday. 48,000 bales are on offer.

Southern Aurora Fwd Prices

Micron

Date

Low

21

July 21

1290

Main Buyers (This Week)

1

Techwool

7664

2

Fox & Lillie

4045

3

Endeavour Wool

3970

4

Tianyu Wool

3553

5

Aust. Merino

3090

6

PJ Morris

2261

Eastern Market Indicators (AUD cents/kg clean)

1342 cents é  30 cents compared with 23/04/2021

Northern Market Indicators (AUD cents/kg clean)

1421 cents é 23 cents compared with 23/04/2021

   AUD/USD Currency Exchange

0.7789 é 0.0081 compared with 23/04/2021

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=748189&A=Trackback
Trackbacks
Post has no trackbacks.