Weekly Market Reports


17th September, 2021

Friday, September 17, 2021

 WEEKLY MARKET REPORT

Week Ending 17th September, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S11/21

This Week

M11/21

Last Sale

S10/21

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2403

2461 2428 -25 1420n +983
18

2022

2088

2032

-10

1207

+815

19

1664

1665

1675

-11

1045

+619

20

1347

1337

1364

-17

949

+398
21 1269 1258 1279 -10 926n +343
 26 760 791 - - 591n +169

28

448

455

467

-19

441n

+7

MC

881

882

885

-4

638n

+243

MARKET MARKS TIME!!

The market followed its recent pattern of up and down movements this sale, but instead of weekly shifts of cheaper and dearer prices the movements were day to day. The AWEX EMI fell by just 9 cents to 1352 as the opening session’s fall of 16 cents was somewhat cancelled out by a 7 cent increase on the final day. The peaks and troughs in the market look to be edging higher as the 2 low points in August were 1330 with a peak of 1355. The market went to 1360 last week before dropping to 1345 on this sale’s opening day then rebounding to above 1350 on the final day.

The up and down pattern of price adjustments was across all sectors. For fleece types, most movements were restricted to losses of 10 to 15 cents bar the 17s that fell by 25 cents and 16.5 and 18.5s that finished in seller’s favour. The skirtings ended the sale 10 to 20 higher for low (< 5% VM) and 10 cents cheaper for high VM types. Cardings regained their opening day’s losses to end the sale just in buyers favour as the MCI fell by 4 cents to 881. The sad story continues for XBs with the initial falls unrecovered like the merino sector to record losses of 20 cents. Many burry types and short/carding wools were either “no bids” or had very little interest with this scenario in play for some time. The FRX fell slightly to 73.25 cents but was of no help to the market with the pass in rate edging up to 12.7%.

For some time now more and more emphasis has been placed on ‘Sustainability and Traceability” right along the wool pipeline from grower to retailer. Another major issue looming from Europe is with the EU Product Environmental Footprint. The PEF is a lifecycle assessment based method to quantify the environmental impacts of products or goods and services. It can be thought of as a ‘benchmark’ – a standard or point of reference against which any comparison can be made. In the context of PEF, the benchmark is the average environmental performance of the representative product sold in the EU market. More on this in upcoming reports.

Ram sales are ramping up with some outstanding results so far for both Merino and XB rams. Some sales from the past week include Yarrawonga at Harden which sold all 268 rams on offer to average $4,125 with a top price of $13,000. Wealla at Gilgandra achieved a top price of $5,500 with 100% cleared (100) to average $2,010 up by $350 from last year. Gullengamble at Yeoval cleared 92% of their 135 offered rams with a top price of $8,000 to average $2,600. At Trundle, Darriwell stud had a top price of $20,000 with just 3 rams from the 100 offered passed in to average $3,135.

Once again, European interests look to be dominating buying lists with their renewed competition for most of the better specified types and FNF lots. This is causing the Chinese and Indian buyers to adjust their premiums and discounts on most tested parameters to hit the minimum specifications needed at the ideal price points. The yo-yo effect on prices is a result of extra competition, increasing demand and ongoing price adjustments having to be made. Market should be firm to seller’s favour next week according to our sources.       



Southern Aurora Fwd Prices

Micron

Date

Low

21

Oct. 21

1280

Main Buyers (This Week)

1

Techwool Trading

4551

2

Endeavour Wool

2940

3

Modiano Australia

2647

4

PJ Morris Wools

2312

5

Tianyu Wool

2260

6

Australian Merino

1987


Eastern Market Indicators (AUD cents/kg clean)

1352 cents ê 9 cents compared with 10/09/2021

Northern Market Indicators (AUD cents/kg clean)

1441 cents ê 2 cents compared with 10/09/2021

   AUD/USD Currency Exchange

0.7329 ê 0.0054 compared with 10/09/2021

10th September, 2021

Friday, September 10, 2021

 WEEKLY MARKET REPORT

Week Ending 10th September, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S10/21

This Week

M10/21

Last Sale

S09/21

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2428

2479 2393 +35 1382 +1046
18

2032

2068

2005

+27

1172

+860

19

1675

1673

1633

+42

995

+680

20

1364

1349

1335

+29

910

+454
21 1279 1311 1233n +46 898n +381
 26 - 804 - - 526n -

28

467

470

475n

-8

396n

+71

MC

885

891

863n

+22

637n

+248

MARKET BREAKS THROUGH 1350!!

As we predicted last week, the market did claw back last series’ losses and some with all the rises coming in the opening session. The heat did come out of the market on the final day of selling in Sydney and Fremantle, but Melbourne bucked the cheapening trend to add a couple of cents to its indicator. By the close of trade the AWEX EMI rose by 29 cents to 1361 and a 31 cent gain in US$ terms saw the indicator climb over 100 cents to 1005. This was against a rising FRX that broke through the 74 cent barrier on Tuesday to settle at 73.85 today from a low of 73 last week. All merino fleece types rose to the tune of 25 to 45 cents. Skirtings took the lead from their fleece counterparts with rises of 30 to 50 cents on the opening day and sustained that gain with an unchanged market in the final session. Cardings, like the fleece wools, had positive then some negative movements to record 20 to 50 cent lifts, bar > 3% VM STN which gave back 10 to 20 cents. All 3 centres’ MCI’s are now averaging 896 cents. Crossbreds continue to lag behind merino types with 28 and broader losing 5 to 10 cents except 26s in Melbourne which added 30 cents. The national pass-in rate dropped to 9% from 20% last sale.

All the talk was positive from the last lot sold last week till Tuesday’s sale, as buyers booked up plenty of wool at good premiums above previous week’s levels, which translated into good increases in the sale room on Tuesday. Most were predicting 20 to 30 but the gains of up to 50 cents put a stop to fresh enquiry as most traders could not sell a bale later in the sale (Wednesday) thus the market stalling. Europe looks to have taken up some of the slack from China at the moment as the continent returns to work from Summer holidays and demand is good with most processors back to full capacity. Some buyers who did very little business with Europe are selling a lot more to them than in past years. Some prices paid for sub 16 micron fleece types were excellent with gains of 1200 to 2500 cents clean from last week for some 14 to 15 micron lots. Some lots from 14.4 to 13.1 micron made from 4700 to 7400 cents. This week marks one year since the market bottomed out at 858 cents. At today’s level of 1361, this is a 63% recovery in the EMI. How far can it go?? Some buyers and brokers are very confident that the market can go higher when the Asian demand picks up and competes with the European demand. This may happen sooner than later.

Ram sales have commenced with Haddon Rig holding their sale yesterday. Covid-19 didn’t seem to restrict the sale as nearly 200 poll rams sold from a top of $19,000 to average $3,236 and 130 horned rams averaged $2,760 with a top of $20,000 - a combined average of $3,045 for the 330 rams sold. AWI elections will be held in November and a vote on the woolgrower levy to be paid for the next 3 years, from July 2022, is to be held. Any grower that has paid $100 in levies over the past 3 years is eligible to vote. Voting can be done online from Monday, 13th September till Friday 5th November at www.woolpoll.com.au or 1800 211 736.


Southern Aurora Fwd Prices

Micron

Date

Low

21

Nov. 21

1280

Main Buyers (This Week)

1

Techwool Trading

4444

2

Endeavour Wool

3340

3

Fox & Lillie

2838

4

Tianyu Wool

2613

5

Australian Merino

1962

6

Modiano Australia

1810


Eastern Market Indicators (AUD cents/kg clean)

1361 cents é 29 cents compared with 03/09/2021

Northern Market Indicators (AUD cents/kg clean)

1443 cents é 26 cents compared with 03/09/2021

   AUD/USD Currency Exchange

0.7383 é 0.0071 compared with 03/09/2021

3rd September, 2021

Friday, September 03, 2021

 WEEKLY MARKET REPORT

Week Ending 3rd September, 2021

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S09/21

This Week

M09/21

Last Sale

S08/21

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2393

2425 2413 -20 1448n +945
18

2005

2013

2017

-12

1249

+756

19

1633

1628

1663

-30

1085

+548

20

1335

1321

1357

-22

991

+344
21 1233n 1254 1263n -30 976n +257
 26 - 771n 770n - 645n -

28

475n

481

475n

-

436n (M)

+39

MC

863n

887n

873n

-10

663n

+200

 MARKET GIVES BACK GAINS!!

The market’s fortunes went in reverse this week as last series’ gains were given back plus a bit as the AWEX EMI fell by 18 cents to 1332. The losses in US$ terms amounted to just 4 cents stopping at 974 as the FRX gained traction against the A$ to climb back through the 73 cent mark. The losses were very even across all microns with 15 to 30 cent falls from 16.5 to 22s. The superior superfine offering for the opening designated superfine sale of the season saw some healthy premiums paid - up to 175 to 200 cents clean for “Italian” types. Skirtings suffered similar falls to the fleece wools (15 to 30 cents). Heavy VM (> 5%) cardings and 17 to 18 micron LKS fell by 10 to 20 cents shaving 10 cents off the MCI to leave it at 863 cents. The crossbred sector was the least affected with 28 to 30 microns just in buyers’ favour and the broader and finer types 5 to 10 cents dearer.

Even though the market fell, signs of a recovery on Wednesday gives hope that the market may firm up next week. Sydney and Fremantle had a solid to dearer tone in this week’s final session and overnight enquiry should convert into sales if history is any guide. The market’s sluggish start to the season - a 91 cent fall (6%) is still a long way in front of the levels 12 months ago. August 2020 saw the EMI collapse by 205 cents from 1134 down to 929 with the low point of the market being in sale 10 (1 year ago next week) when the EMI fell to 858 cents. This equates to a 64% gain in the market to today’s level. The 17 micron indicator (Melbourne) is 1085 cents better - a massive 81% lift.

Top-makers and early stage processors continue to dominate buying lists with European interest’s keener than their Chinese counterparts. As feed dries out and sheep start picking up more VM late into the Spring and early Summer we’ll see if the current status quo remains when the higher VM wools come in and FNF fleece types dwindle. The cutoff point for VM discounts in fleece wools is about 2% at the moment, if and when this will change depends on when the heavier VM clips hit the market. Currently discounts for VM higher than 2% look to be way over the top.

Last week saw the National Ram sale held via the online platform AuctionsPlus. The annual event that is usually held in Dubbo was moved to Mudgee with the sheep show, stud displays and fleece judging cancelled due to Covid19. With interstate travel restrictions and lockdowns in place, some studs decided not to offer rams at the sale reducing the catalogue to only 32 rams. Overall, 21 rams were sold to a top of $15,000 with an average of $4,550. Nerstane from Walcha achieved the top price and the 3rd highest money ($7,750). In a New England trifecta, Alfoxton from Armidale sold the 2nd highest price ram for $10,500.

As we mentioned earlier, the market looks as though it will claw back this week’s losses and the EMI could break back through the 1350 cent mark.



Southern Aurora Fwd Prices

Micron

Date

Low

21

Nov. 21

1260

Main Buyers (This Week)

1

Techwool Trading

4657

2

Endeavour Wool

2979

3

Tianyu Wool

2606

4

Fox & Lillie

2171

5

PJ Morris Wool

1510

6

Australian Merino

822


Eastern Market Indicators (AUD cents/kg clean)

1332 cents ê 18 cents compared with 27/08/2021

Northern Market Indicators (AUD cents/kg clean)

1417 cents ê 16 cents compared with 27/08/2021

   AUD/USD Currency Exchange

0.7312 é 0.007 compared with 27/08/2021