Weekly Market Reports


4 June 2021

admin Macwool - Friday, June 04, 2021

 WEEKLY MARKET REPORT

Week Ending 4th June, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S49/20

This Week

M49/20

Last Sale

S48/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2388

2408 2330
+58 1659 +729

18

2001

1995

1965

+36

1504

+497

19

1682

1667

1640

+42

1389

+293

20

1349

1349

1350

-1

1318

+31
21 1264n 1254 1269n -5 1298n -34
 26 718n 733n 729 (M) +4 (M) 823n (M) -90 (M)

28

453n

470

448n

+15

615n

-162

MC

925n

901n

913n

+22

884n

+41

HIGHEST POINT OF THE YEAR!

The market kept up its momentum for the third sale in a row as most types across nearly all MPGs added to their values. The only negative movements were in the 20/21 micron fleece types in Sydney which finished in buyers’ favour due to higher levels of VM in these wools. After a few weeks of single figure gains the AWEX EMI rose by 23 cents to 1343 eclipsing the 1342 cent mark of late April to sit at its highest point this year. The gain was just as impressive in US$ terms with an 18 cent lift to 1040 as the FRX barely moved for the week to stay at 77.5 cents. 19.5 micron and finer gained 20 to 60 cents with 20s and coarser in buyers’ favour by up to 5 cents. It was noticeable that discounts for tender, low yield and high mid-break lots were reduced as buyers scrambled for the so-called “cheaper lots”. Growers were quite happy with the ascendency in prices as just 72 bales of fleece were passed-in in Sydney.  Skirtings had even more impressive rises with < 18 micron under 2.5% VM jumping by 60 to 80 cents with broader types to 19 micron 20/30 cents higher with all other broader and burrier types solid to sellers’ favour. Cardings kept the rising momentum going with gains across the board in this sector to the tune of 40 to 60 cents. All 3 centres’ MCIs are now back above 900 cents to average 911. After 4 weeks of losses in a row, crossbreds also finished in the positive with most types up by 5 to 15 cents. The pass-in rate fell to 7.4% - the highest clearance rate for 5 weeks.

Finer microns (< 19.5) are enjoying their day in the sun at the moment. With less volume of these types and lower cashmere supply in Mongolia and Iran and supply chain disruptions much of the high quality knitwear for the up and coming season will contain more merino than cashmere - a good outcome for fine wool growers with wool to sell over the next few months. As each week goes by more enquiry is coming from Japan, India and Europe putting more competition into the market. Medium wools (20/22 micron), however, are struggling to keep up with their finer micron counterparts’ gains with VM over 2% being punished unfairly as this is not high level VM nor difficult to process compared to FNF wools or types up to 2%. Many mills in China will not sway from their generic government types that specify 1.8% VM. The mills that buy outside these specs can virtually pick and choose what they want to buy at great value. There has been new business written for medium merino types so, hopefully, this can benefit the 20 micron and broader market. Topmakers from China and Europe took on the local traders to try to build up some inventory with big manufacturers keen to secure quantity as supply throughout June should average mid to high 30,000s as Fremantle do not sell next week or in sale 52.  All the showfloor talk is for a very solid market with 38,600 bales on offer on the East Coast.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Sept. 21

1250

Main Buyers (This Week)

1

Techwool

5641

2

Fox & Lillie

4082

3

Endeavour Wool

3640

4

Tianyu Wool

3046

5

United Wool

1914

6

PJ Morris

1843

Eastern Market Indicators (AUD cents/kg clean)

1343 cents é 23 cents compared with 28/04/2021

Northern Market Indicators (AUD cents/kg clean)

1430 cents é 28 cents compared with 28/04/2021

   AUD/USD Currency Exchange

0.7742 ê 0.0000 compared with 28/04/2021

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