Weekly Market Reports


7 May 2021

admin Macwool - Friday, May 07, 2021

WEEKLY MARKET REPORT

Week Ending 7th May, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S45/20

This Week

M45/20

Last Sale

S44/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2268

2278 2304
-36 1657 +611

18

1913

1920

1948

-35

1488

+425

19

1597

1598

1637

-40

1353

+244

20

1344

1357

1365

-21

1303

+41
21 1277n 1283 1277n 0 1278n -1
 26 - 763 793 (M) -30 (M) 846n (M) -73 (M)

28

499n

501

515n

-16

611n

-112

MC

901n

911n

922n

-21

796n

+105

MARKET TO HOLD ABOVE 1300??

The good fortnight the market had with a combined 51 cent gain came to a sudden stop this week with a 23 cent retreat in the AWEX EMI to 1319. With 48,000 bales on offer and plenty of enquiry, all the showfloor talk was for a very solid to dearer market but by Monday afternoon it was evident that sentiment had changed as forecast rostered volumes for next week’s sale ballooned from 38,600 to 54,700 in a week, an increase of 41% with estimates for the following sale expanding by 22% (32,700 to 40,155). It would seem that early figures released for these 2 sales were grossly underestimated in the first instance giving buyers and exporters a false reading of up and coming volumes. Added to this was the extra volume of wool put into the next few sales as the market rose. Some of this wool was harder to place with higher VM and low yielding types held over from the drought. These wools were cheaper from the get-go and dragged the market lower.

As we stated earlier, the market shed 23 cents to 1319 with a similar fall of 26 cents in US$ terms to 1019. The fall in the FRX to 77.25 (0.65) was not enough to stave off the falling market. All fleece microns suffered falls (bar 21s and broader) ranging from 20 to 40 cents as all types came under pressure. Skirtings fell by similar amounts, 20/40 cents with low VM types (< 2%) with good AM results quoted about 10 to 20 cents back. Cardings recorded similar falls to their combing counterparts of 20 to 30 cents with low VM types less affected. All centres’ MCIs still remain above 900 averaging 912 cents. Crossbreds also lost ground to see most microns (26 to 32) give back 15 to 30 cents. The pass-in rate more than doubled to 15% up by 9% on the previous sale.

Apart from sentiment and quantity variation influencing the market, logistical problems and buyer finances are still at the forefront of exporters’ dramas. Their ability to plan buying strategies and put those plans into action week to week is somewhat of a guessing game as wool deliveries are still 2/4 weeks delayed into China and more to other destinations. The market has performed well and absorbed the larger volume on offer this season, over 104,000 extra bales offered to the trade when compared to the previous season with a market basically rising as demand picks up as the effects of Covid-19 slowly dissipate around the world. The latest testing figures released by AWTA make for some interesting reading. April figures show a 19% increase compared to April, 2020. Total weight tested season to date is up by 1% which equates to 264mkg tested compared to 261mkg last season due mainly to heavier wool cuts per sheep as a result of the better season and higher lambing % from last year. The largest offering since the opening sale of the year (54,700 bales) will test the market next week.

Southern Aurora Fwd Prices

Micron

Date

Low

21

sept. 21

1240

Main Buyers (This Week)

1

Techwool

5146

2

Endeavour wool

3977

3

Tianyu Wool

3952

4

Fox & Lillie

2970

5

Modiano

2139

6

Aust. Merino

2121

Eastern Market Indicators (AUD cents/kg clean)

1319 cents ê  23 cents compared with 30/04/2021

Northern Market Indicators (AUD cents/kg clean)

1393 cents ê 28 cents compared with 30/04/2021

   AUD/USD Currency Exchange

0.7727 ê 0.0062 compared with 30/04/2021

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