WEEKLY MARKET REPORT

Week Ending 9th October, 2020

 AWEX Northern Micron Indices Comparison

MOST LOSSES RECOVERED!!

As we forecast last week the EMI rose back through the 1000 cent barrier adding 26 cents to its value to finish this series at 1022. An FRX rate that remained flat throughout the sale had the EMI in US$ terms up by 19 cents to 727. Finer fleece types (< 17.5 and 19s) edged higher by 30 to 40 cents with discounts for overlength, tender, VM and high mid-breaks almost non-existent with these wools selling for levels usually reserved for European types while all other microns added 20 to 25 cents with most growers happy to accept these price rises as just 4% was passed-in.  The skirting catalogue had an identical sale as < 17.5 rose by 30 to 50 cents; 17.5 to 18.5 were quoted 25/40 dearer while broader types across all VM levels added 20 to 30 cents. Again growers were happy to accept these price increases clearing 97%. Cardings had a very solid sale as all types were quoted as sellers’ favour. Crossbreds also staged some sort of comeback with all microns lifting from 15 to 35 cents.

Opinion was divided as to which way the market would go. One of our well informed sources said the market would be solid to dearer but other exporters were tipping firm to buyers’ favour. As the opening day progressed the “fence sitters” had to re-enter the market to avoid buying wool at the dear point of the series. Traders dominated the fleece sector with first stage processors calling the shots for all other types. Chinese demand is still dominant but, as each week goes by, small pockets of enquiry from India and Europe are becoming more evident. Even as greasy prices improve the retail sector is still very cautious to commit to placing new season orders as big volumes of old (or out of season inventory) is sold to the consumer hopefully as at small profit or break-even point but signals from retail on a macro level are on the improve. The elephant in the room is still Covid-19 and the race to find a vaccine is still at the forefront of all Western governments desperate to get the masses back to work to get economies growing again without having to go deeper into debt with more stimulus packages. The more chance consumers have to go shopping and spend money on discretionary goods such as wool the quicker the market has the chance to recover to acceptable levels.

A few more Ram sale results: Parkdale at Dubbo sold 115 rams for a top price of $8,200 to average $1,795; Boxleigh Park at Wellington cleared 95% with a top of $3,750 to average $1,860 for their mix of Poll and Horn rams; also at Wellington Mumblebone averaged $2,920 to clear all but 2 of the 260 rams offered with a top of $14,000; Bundilla at Young sold all but 5 of the 300 rams on offer to average $3,790 ($520 higher than last year) with a top of $11,000 twice and Charinga in Victoria achieved a top of $38,000, an average of $4345 for 141 Poll rams and Horned rams average $2,680.

        Southern Aurora Fwd Prices            

Main Buyers (This Week)