Weekly Market Reports


9 July 2021

admin Macwool - Friday, July 09, 2021

 WEEKLY MARKET REPORT

Week Ending 9th July, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S01/21

This Week

M01/21

Last Sale

S53/20

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2536

2546n 2545
-9 1586 +950

18

2115

2131

2143

-28

1408

+707

19

1748

1761

1738

+10

1284

+464

20

1427

1440

1438

-11

1221

+206
21 1312 1325 1302n +10 1200n +112
 26 - - - - 810n -

28

470n

473

490n

-20

564 (M)

-91 (M)

MC

959n

957n

965n

-6

826n

+133

NOT AS BAD AS EXPECTED!!

Even though the market opened the new season on a cheaper note (that was widely anticipated by buyers) the AWEX EMI did manage to stay above the 1400 cent mark. Results in the 3 centres were markedly different as Sydney fell by 12 cents and Melbourne and Fremantle recorded 2 cent gains. The softer start to the series was turned around by the end of selling in Melbourne on Thursday (in isolation) with all Merino MPGs averaging 20 cents better in Melbourne than Sydney by the close of the market which augers well for next week. In the final washup the EMI lost just 3 cents to 1420 with 17s and finer, 18.5 and 19.5/20s falling by 5/10 cents. A fall of 25 cents was the result for 17.5/18 micron while 19 and 21s added 10 cents. After initial losses in the opening session skirtings recovered to finish the sale in buyers’ favour bar some high VM types with poor AM readings to be 20 to 30 cents off the pace. Cardings followed a similar pattern to their combing counterparts to end the series in buyers’ favour with the XB selection 15 to 30 cents cheaper across the board.

The sharp rise in the FRX on Monday night (to 76.5 cents) sent the market south in the opening session on the East Coast but, by the time Fremantle finished selling, a change in sentiment had come to see consolidation on Wednesday and a dearer market to end the week. The big initial offering of 56,000 then 53,000 bales didn’t frighten buyers away as first thought with an expected fall of 20 to 50 cents for most fleece types never eventuating. Many fabric and garment makers had been questioning the rises over the past 6/8 weeks when there were no signs of increased consumption in the Northern Hemisphere and nervous about whether consumers would take up the slack in their up-and-coming autumn. It looks as though early stage processors got a little over excited and pushed prices beyond the comfort level of their downstream users when retail demand had not increased. This time of year can often see large volumes of wool hitting the market (start/end of financial year) with some brokers absolute disregard for orderly marketing, this week’s sale being the biggest so far this year and next week identical (51,300 bales) adding up to 64% more wool offered than the 2 corresponding sales last year at 66,100 bales. Buyers will be mindful of the up and coming 3 week recess here and the 6 week recess in South Africa (currently under way) and no sales in New Zealand, there will be no access to wool sales anywhere in the world till early August. Hopefully this recess will give them a chance to deliver wool to mills and open letters of credit to allow funding for when sales start again. Showfloor chatter is for a solid to dearer market.

Southern Aurora Fwd Prices

Micron

Date

Low

21

Oct. 21

1320

Main Buyers (This Week)

1

Techwool

7608

2

Tianyu Wool

4656

3

Endeavour Wool

4070

4

Fox & Lillie

3920

5

PJ Morris

3745

6

Aust. Merino

2466

Eastern Market Indicators (AUD cents/kg clean)

1420 cents ê 3 cents compared with 02/07/2021

Northern Market Indicators (AUD cents/kg clean)

1510 cents ê 12 cents compared with 02/07/2021

   AUD/USD Currency Exchange

0.7463 ê 0.0059 compared with 02/07/2021

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