Weekly Market Reports


15 June 18

Friday, June 15, 2018

WEEKLY MARKET REPORT

Week Ending 15th June, 2018

 

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S50/17

This Week

M50/17

Last Sale

S49/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2857

2821

2863n

-6

2197n

+660

18

2509

2491

2519

-10

2123

+386

19

2280

2286

2271

+9

1870

+410

20

2261

2277

2256

+5

1638

+623

21

2259n

2272

2254

+5

1554

+705

22

2246n

2270n

2231n

+15

1485n

+761

26

-

1494n

1491n

-

1109n

+385 (M)

28

-

1003

1020n

-

767n

+263 (M)

30

-

695

700n

-

-

-

MC

1474n

1475n

1479n

-5

1181

+293

 

WOOL MARKET PEAKED – NO !

 

It seemed last week that our market had peaked, but spurred along by insistent demand from China and curbed supply from how sheep numbers of Australia’s Woolgrowers are again feeling the benefits of the resurgence in wool.

This week’s market finished in a positive territory after loosing ground last week. The EMI rose by 10c to 2021c. The main push was in the 19.5-22.5 microns which rose by 10 to 40c while 18.5 micron and finer had falls of 5 to 30c. Interesting to hear a comment made to me by an exporter this week that the market we now have is driven by demand from mills and not by our short supply, the key driver of course is China who import close to 80% of our clip.

The skirting sector was similar to the fleece in that 19 micron and finer lost ground by 20 to 40c, lots with 4% vegetable matter and greater were most affected. The broader types rose by 10 to 20c.

Carding wools rose by 4c for the week and Crossbreds improved with mixed results. 27 micron improved while 28 to 30 micron eased slightly. Crossbred lambs wool was again sought after by the trade.

This week saw $58.45 million spent on wool purchases and so far this season we have seen a $3.32b spent, which is a far cry from 1998 when prices hit a low average of $5.10/kg, which was well below cost of production.

We have been hearing from the exporting trade that certain Chinese mills are wanting more wool that is 110-115mm long, because they cannot get enough due to the fact that many wool producers shore early to cash in on the market and some are shearing at 6 and 8 months. These longer wools are used in the worsted section with their end use being apparel or fabric. Most of the combing wools we see on the show floor now are measuring 60-90mm.

So next week we see only Sydney and Melbourne selling with approximately 21,326 bales on offer – the smallest offering of the year. Macdonald and Co will, on Thursday the 21st June offer 1688 bales.

Can we maintain these levels or go higher? Stay tuned.

 

 

Ag Concepts Fwd Prices as at 15th June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

18

12 Dec 18

2255

2255

19

8 Aug 18

2200

2200

21

29 Aug 18

2021

2100

22

26 Sep 18

2050

2050

 


Main Buyers (this week)

1

Fox & Lillie

3298

2

Techwool

2761

3

Seatech Ind.

2530

4

Tianyu

2318

5

Michell Wool

1555

6

Modiano

1472

7

United Wool Co.

1220

8

Endeavour Wool

929

9

Kathaytex

916

 

Eastern Market Indicators (AUD cents/kg clean)

2021 cents é 10 cents compared with 7/6/2018

Northern Market Indicators (AUD cents/kg clean)

2059 cents é 2 cents compared with 7/6/2018

 

AUD/USD Currency Exchange

0.765 ê 0.0016 compared with 6/6/2018

8th June 2018

Friday, June 08, 2018

WEEKLY MARKET REPORT

Week Ending 8th June, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S49/17

This Week

M49/17

Last Sale

S48/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2863n

2834n

2885

-22

2183n

+680

18

2519

2505

2554

-35

2075

+444

19

2271

2284

2316

-45

1837

+434

20

2256

2262

2258

-2

1574

+682

21

2254

2254

2239

+15

1505

+749

22

2231n

2242

2216n

+15

1422n (M)

-

26

1491n

1489n

1494

-3

-

-

28

1020n

1005

1023

-3

762n

+258

30

700n

698

709

-9

568n

+132

MC

1479n

1474n

1470n

+9

1180n

+299

HAVE WE REACHED THE PEAK?

After four weeks of continued large price increases the wool market has cooled slightly this week in the smallest offering of the season, only 26942 bales were available to the buying trade.

Despite this smaller offering, a softer tone was evident from the outset. The losses were mainly the finer microns resulting in 19.0 micron and finer losing between 25 and 50 cents clean.

A very limited supply of 21 micron wools and broader attracted strong demand pushing prices up by 15 cents clean for these types.

The Eastern Market Indicator (EMI) lost 16 cents off the record set in the previous sale and closed at 2011 cents.

The skirtings also suffered 20 to 40 cents loss, however skirting wools carrying less than 4.0% vegetable matter were not as affected by the drop  in price.

Crossbred wools were also cheaper with 28.0 to 30.0 microns off by 5 to 15 cents.

It was very evident this week that poorly prepared and very dusty clips in all microns lost buyer support and were the hardest hit in the falling market.

Most carding types remained firm on a limited offering.

Quantities increase next week with all 3 centres selling and a roster of 28.956 bales, Macdonald and Co will offer 1081 bales Wednesday 31st. Will we see more falls who knows.

Ag Concepts Fwd Prices as at 1 June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

11-Jul-18

2155

2155

21

14-Nov-18

1900

1950

21

26-Sep-18

1965

2005

21

13-Feb-19

1910

1910

 

Main Buyers (this week)

1

Techwool

4339

2

Fox & Lillie

2864

3

Seatech Ind.

2562

4

Tianyu

2034

5

Modiano

1872

6

Endeavour Wool

1502

7

Michell Wool

1494

8

Aust. Merino Exp.

1380

9

United Wool Co.

Eastern Market Indicators (AUD cents/kg clean)

2011 cents ê 16 cents compared with 31/5/2018

Northern Market Indicators (AUD cents/kg clean)

2057 cents ê 19 cents compared with 31/5/2018

AUD/USD Currency Exchange

0.767 é 0.0104 compared with 31/05/2018

1 June 2018

Friday, June 01, 2018

WEEKLY MARKET REPORT

Week Ending 1st June, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S48/17

This Week

M48/17

Last Sale

S47/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2885

2888n

2834n

+51

2183n

+702

18

2554

2532

2501

+53

2088

+466

19

2316

2331

2261

+55

1836

+480

20

2258

2266

2193

+65

1564

+694

21

2239

2263

2186n

+53

1476n

+763

22

2216n

2246n

2174n

+42

1416 (M)

+730 (M)

26

1494

1488n

1438

+56

1053n

+441

28

1023

1019

999

+24

755n

+268

30

709

709

695

+14

563n

+146

MC

1470n

1479n

1449n

+21

1180

+290

OMG - EMI CRACKS 2000!!!

History was made as the AWEX EMI broke through the 2000 cent barrier to finish the sale at 2027, a 44 cent lift for the series. The all-time record was also set in $US terms now at 1533 up 32 cents for the week. The month of May has been a cracker for the wool market. The past 4 sales have seen the EMI sky-rocket by 191 cents (10%) which makes this rise the largest monthly gain since early 2012. In the mad scramble for volume buyers almost disregarded any faults - VM, colour and cott - to lift all microns 30 to 70 cents higher pushing all microns further into record territory leaving just 35 bales of fleece passed-in.

Room 2 types were not neglected either as the skirting market kept pace with their fleece counterparts. The

< 19 micron carrying less than 3% VM were 60/80 cents to the good while broader, burrier types gained 30 to 50 cents. Cardings again improved after a steady opening session to have all types 10 to 30 cents dearer as all 3 centres’ MCIs are 1470 to 1480. Crossbreds had their best result for 5 weeks as fine to medium types (25 to 28 micron) put on 25 to 55 cents with broader types up to 15 cents dearer.

This was another staggering sale where history was made as we offered our biggest catalogue since Easter and the largest in Sydney this sale. According to our calculations, if the EMI was tracking live with the auctions we were selling at the precise moment it would have broken the 2000 cent mark on Wednesday. According to historical charts and some guru’s conversion rate the boom of 1951 in real terms is 5 times higher than where we are now. This would equate to the EMI at about 10,700 cents, still along way to go and prove that those prices are unlikely to ever be surpassed!! Quantity is the only thing on the exporters minds at the moment as the need to keep machinery running is of more concern than the cost of raw wool or the price that can be passed down the processing pipeline from topmakers to spinners and weavers and on to retailers without pricing the final garment out of customers’ reach and cooling the current “insatiable demand”.

How long can this bull-run last?? Wool prices and end uses demand is in uncharted territory. Today’s demand is coming from vastly varied garments like outdoor sportswear, next to skin, double-facing fabrics and fake fur along with the traditional clothing. Next week has Fremantle on the sidelines as the East Coast centres offer 27,000 bales in what could be another record setting sale.

          Ag Concepts Fwd Prices as at 1 June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

11-Jul-18

2155

2155

21

14-Nov-18

1900

1950

21

26-Sep-18

1965

2005

21

13-Feb-19

1910

1910

        Main Buyers (this week)

1

Techwool

4037

2

Fox & Lillie

3608

3

Seatech Ind.

2460

4

Aust. Merino Exp.

2375

5

Kathaytex Aust.

2135

6

Lempriere

1650

7

Endeavour Wool

1594

8

Michell Wool

1410

9

PJ Morris

814

Eastern Market Indicators (AUD cents/kg clean)

2027 cents é 44 cents compared with 25/05/2018

Northern Market Indicators (AUD cents/kg clean)

2076 cents é 43 cents compared with 25/05/2018

AUD/USD Currency Exchange

0.7562 é 0.0008 compared with 25/05/2018


25 May 2018

Friday, May 25, 2018

WEEKLY MARKET REPORT

Week Ending 25th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S47/17

This Week

M47/17

Last Sale

S46/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2834n

2888n

2786n

+48

2265

+569

18

2501

2495

2437

+64

2148

+353

19

2261

2281

2204

+57

1891

+370

20

2193

2202

2143

+50

1590

+603

21

2186n

2189

2128

+58

1477

+709

22

2174n

2185

2115n

+59

1419n

+755

26

1438

1431n

1396n

+42

1045n

+393

28

999

995

1009

-10

755n

+244

30

695

716

703

-8

563n

+132

MC

1449n

1491n

1422

+27

1180n

+269

CAN THE EMI CRACK 2000???

The market kept marching towards new records this sale as the AWEX EMI closed in on the 2000 cent mark finishing this series at 1983, a 40 cent appreciation from last sale. The rise was just as good in US$ terms gaining 39 cents to 1501 as the FRX swayed in the 75 cent range all week - this morning at 75.70 cents. A few buyers thought the frantic rises over the past 2 weeks would steady to have a market that could be slightly cheaper given the rapid rises we have seen. That wasn’t the case as the market had similar gains on both days to see all microns add 50/70 cents regardless of style, yield or VM.

Skirtings weren’t to be outdone either as all types and descriptions were rock solid with 18/19 micron up to 5% VM lifting by 30 to 40 cents. Cardings kept up with the combing sector of merinos with the 3 centres averaging 30 cent rises as all types added 20 to 40 cents to their previous values as the only weeks the MCIs have been higher was the pre-Christmas sale and the 2 opening sales in January. Crossbreds kept the same pattern as the few previous sales, < 26 micron up to 40 cents dearer, 28s and broader 10 cents off the pace.

Another record breaking sale as 17.5 to 22s are at all-time record levels. The EMI is 33% (488 cents) higher than a year ago and a massive 691 cents (53%) better than this time 2 years ago. Since Easter the EMI has rallied by 211 cents. All the talk is about quantity, the lack of it now and the looming tighter supply in the spring and into next year as the crippling drought gives no signs of letting up. The past 3 sales and the next 3 will see an average of just 32,000 bales/week, far below the quantity needed to supply the current levels of demand. This week and next has Fremantle holding 1 day sales then missing a sale to add to exporters’ woes about supply. The highlight of the recent gains has been the 19.5 and coarser microns as the gap between 19 and 22 is averaging 95 cents across the 3 centres - the gap at Easter was 180 cents.

Can the demand be maintained and higher costs passed down the pipeline all the way to the retailer?? The short term answer might be yes but long term, “who knows”. Plenty of growers heard the country hour interview where one Chinese processor was very confident through till spring and word from some fine wool processors that all is good in the sub 19 micron sector. Just 31,000 bales up next week. Will the EMI crack 2000 cents??                   

                        Ag Concepts Fwd Prices as at 25 May, 2018

Micron

Date

Low

High

21

27-Jun-18

2080

2080

21

26-Aug-18

1920

1945

21

10-Oct-18

1900

1900

 

Main Buyers (this week)

1

Techwool

3821

2

Fox & Lillie

3727

3

Seatech Ind.

2975

4

Aust. Merino Exp.

2572

5

Kathaytex Aust.

2176

6

Endeavour Wool

2027

7

Tianyu

1646

8

PJ Morris

1567

9

Modiano

1412

Eastern Market Indicators (AUD cents/kg clean)

1983 cents é 40 cents compared with 18/05/2018

Northern Market Indicators (AUD cents/kg clean)

2033 cents é 38 cents compared with 18/05/2018

AUD/USD Currency Exchange

0.757 é 0.0043 compared with 18/05/2018


18 May 2018

Friday, May 18, 2018

WEEKLY MARKET REPORT

Week Ending 18th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S46/17

This Week

M46/17

Last Sale

S45/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2786n

2800n

2771n

+15

2354

+432

18

2437

2427

2389

+48

2219

+218

19

2204

2215

2154

+50

1942

+262

20

2143

2154

2074

+69

1628

+515

21

2128

2138

2044

+84

1499

+629

22

2115n

2114

-

+96 (M)

1441n

+674

26

1396n

1389n

1344

+52

1049

+347

28

1009

1006

999

+10

763

+246

30

703

714

703

0

570

+133

MC

1422

1448n

1397n

+25

1176

+246

MARKET HEADS TOWARDS THE STRATOSPHERE!

There was absolutely no hint of a correction this week as the wool market went on another upward trajectory similar to last series. The AWEX EMI added 52 cents to its value to smash through the 1900 cent mark to finish the sale at 1943, yet another all-time record. In US$ terms the gains were much the same - a 49 cent rise to 1462 (its highest level in 7 years) as the FRX did move around a bit, at one stage dropping to below 74.5 cents then regaining some ground to 75.25 this morning. They are now referring to this extended period of gains as a “super-cycle” that has lasted 112 weeks outdoing the raging market in the late 1980s. Most merino fleece types added 35 to 85 cents with no wools neglected (just 1% passed in) as 18 to 22 micron are now in all-time record territory in the 3 centres.

Skirtings also took a quantum leap as < 18 micron skyrocketed by 90/100 cents with the 19s and broader 60 cents to the good as buyers almost completely disregarded faults like colour, cott or VM.  Cardings took their lead from the other merino sectors as all types in this category lifted by 15 to 40 cents to have all 3 regional MCIs above 1400 cents. Crossbreds had a relatively quiet sale bar 26 micron which jumped by 50 cents, others up to 10 dearer as 26s and 28 micron re-write the record books with new highs.

No-one could have anticipated the rises of the past few sales as the growers lucky enough to have wool in the last 3 weeks have benefitted from a “buying frenzy”.  Can it keep going, when/if the correction will come and how big will that correction be??? These were hot topics of discussion at the 87th Congress of the International Wool Textile Organisation in Hong Kong this week. A plethora of items were on the table from drought and supply concerns in Australia (notably NSW) and foreseeable low levels of production for the next 2 years to the demand side - global economic conditions are very good with consumer confidence levels still very high. The recent survey of wool textile conditions from IWTO is positive right through the industry. Retail and online sales have risen in China by 8 and 22% with an ever-increasing emphasis on sustainability. Also a good session was “wool’s contribution to wellness” the benefits of wool’s impact on human skin health, especially babies. Next sale’s roster drops even lower to 32,000 bales. Where to for the market, who knows???

                   Ag Concepts Fwd Prices as at 18 May, 2018

Micron

Date

Low

High

21

6-Jun-18

2005

2005

21

29-Aug-18

1900

1955

21

24-Oct-18

1860

1860

 

     Main Buyers (this week)

1

Techwool

5407

2

Fox & Lillie

5000

3

Kathaytex Aust.

2887

4

Aust. Merino Exp

2622

5

Seatech Ind

2472

6

Tianyu

2292

7

PJ Morris

1846

8

Modiano

1769

9

Endeavour Wool

1559

Eastern Market Indicators (AUD cents/kg clean)

1943 cents é 52 cents compared with 11/05/2018

Northern Market Indicators (AUD cents/kg clean)

1995 cents é 55 cents compared with 11/05/2018

AUD/USD Currency Exchange

0.7527 é 0.0050 compared with 11/05/2018

11 May 2018

Friday, May 11, 2018

WEEKLY MARKET REPORT

Week Ending 11th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S45/17

This Week

M45/17

Last Sale

S44/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2771n

2583n

2752n

+19

2354

+417

18

2389

2241

2345

+44

2223

+166

19

2154

2105

2086

+68

1939

+215

20

2074

2072

1980

+94

1630

+444

21

2044

2048

1964

+80

1506

+538

22

-

2018

1946n

+63 (M)

1420n (M)

+598 (M)

26

1344

1330n

1341n

+3

1043

+301

28

999

999

998

+1

768

+231

30

703

706

708

-5

588

+115

MC

1397n

1426n

1377

+20

1171n

+226

RECORD BOOKS REWRITTEN – AGAIN!!

History again looked to repeat itself as all participants on the Eastern seaboard are keen watchers as to where the market in Fremantle finishes. Given the 2 hour time difference sales are well and truly done with here and, more often than not, how the market ends in the west is a guide as to which way the market will track here the next day. It was a welcome surprise to see Fremantle finish so strongly last Thursday and was just a sign of things to come as markets exploded into action on Wednesday as records were smashed. By week’s end all 3 centres made massive gains with fleece indicators climbing by 40 to 90 cents. The AWEX EMI set new daily and weekly records adding 55 cents to 1891, 23% higher than 12 months ago. The regional Indicator in the west is an incredible 2018 cents. 20 to 23 microns are at record highs as all types, regardless of yield, VM or strength were swept up in the scramble to secure quantity in most cases not worrying about faults.

Skirtings also benefitted from the supply squeeze as all types across all microns and VM levels posted gains of 50 to 60 cents. Cardings also were caught up in the buying frenzy as the 3 selling centres recorded double digit rises and the 3 MCIs are averaging 1410 cents across the country as all types in this sector rose by 15 to 30 cents. Crossbreds took a breather this sale as 28s and finer were in sellers’ favour with 30 micron and broader up to 5 cents off the pace.

A great sale to be in as there was no real indication that the market was going to rise in the fashion that it did. Futures trades pointed to a dearer market but nothing to the extent of the gains from the opening lot on Wednesday. The forecasts of a drop in the supply of wool not only in the short term but well into next year due to the state-wide drought in NSW and reduction in sheep numbers and the best FRX in a year (as the A$ sits well below 75 cents - 74.75 this morning) looked to be the catalyst for the renewed buyer activity as some lots were bought without limits and mills have virtually no wool in front of machinery waiting to be processed as hand-to-mouth operations have been the standard practice for some time.

Where to from here - that is the million$ question. The EMI, all regional indicators, 20 to 23 micron and 26s are at record levels and most merino microns at 5 year highs so for the market to keep improving would be quite the scenario given the climatic conditions affecting the quality of the clip and processors’ ability to pass on the higher costs. Next sale’s quantity is similar to this series. Will there be a correction, who knows??? 

           Ag Concepts Fwd Prices as at 11 May, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

27-Jun-18

1960

1960

21

24-Oct-18

1800

1830

21

22-Aug-18

1880

1880

21

13-Feb-19

1700

1700

      

Main Buyers (this week)

1

Techwool

5277

2

Fox & Lillie

5133

3

Aust. Merino Exp

2747

4

PJ Morris

2544

5

Seatech Ind

2375

6

Modiano

2030

7

Endeavour Wool

1893

8

Lempriere

1666

9

Kathaytex Aust.

1534

Eastern Market Indicators (AUD cents/kg clean)

1891 cents é 55 cents compared with 4/05/2018

Northern Market Indicators (AUD cents/kg clean)

1940 cents é 48 cents compared with 4/05/2018

AUD/USD Currency Exchange

0.7477 ê 0.0044 compared with 4/05/2018


4 May 2018

Friday, May 04, 2018

WEEKLY MARKET REPORT

Week Ending 4th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S44/17

This Week

M44/17

Last Sale

S43/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2752n

2712n

2763

-11

2382n

+370

18

2345

2346

2361

-16

2251

+94

19

2086

2086

2105

-19

1967

+119

20

1980

1989

2005

-25

1660

+320

21

1964

1970

1969

-5

1540

+424

22

1946n

1955

-

-1 (M)

1454n

+492

26

1341n

1326n

1343

-2

1044n

+297

28

998

989

993

+5

763

+235

30

708

706

743

-35

585n

+123

MC

1377

1390n

1379n

-2

1169

+208

MARKET MARKS TIME EVEN WITH LOWER DOLLAR

The cheaper trend in Melbourne and Fremantle last Thursday put fear into wool growers selling in this sale that the market might soften. They were spot on. An opening cheaper session in all 3 centres saw last week’s gains disappear but, in an encouraging sign on Thursday, markets looked to have leveled on the eastern seaboard and Fremantle’s fortunes were completely reversed from the opening day as they recaptured all their losses to have most MPGs firm to 20 cents dearer by the end of the sale. By week’s end results were mixed here and in Melbourne as all indicators < 20 micron were 10 to 35 cents off with broader types in buyers’ favour in Sydney and finer < 18.5 mostly dearer in the south and others either side of unchanged. The AWEX EMI gave up 10 cents for the sale to 1836. The move in US$ terms was minimal as well - 17 cents back to 1381. The FRX dipped to its lowest point since last June to 74.94 cents on Wednesday but did not assist the market - the A$ now at its lowest point (75.20 cents) almost 3 cents below its recent peak of 78.08 just 2 weeks ago.

Skirtings also came under some pressure as, like their fleece counterparts, only the very best fine and low VM types (< 3%) held their ground or made a slight advancement as the > 5% VM types were irregular but most looked 10/20 cents cheaper. Cardings also had a mixed sale with the MCI drifting back by 2 cents to 1377. Finer LKS and STN were in sellers’ favour, broader LKS off by 10 while CRT remained unchanged. Crossbreds took a breather from their frantic rises over the past 5 sales as < 28 micron remained solid with 30s and broader 20 to 35 cents cheaper.

The market movements were minimal this week as a low point in the FRX for 12 months couldn’t persuade buyers to step in and secure the ever decreasing volumes coming onto the market. The quality of the offering is still  the biggest factor influencing price direction which was the talking point and how to average these wools into orders that fit mills’ specifications is becoming more and more difficult as the “good“ wools become scarcer and burrier/dusty types are turning up to brokers’ stores literally by the truck load. The quality of the selection did improve marginally this sale but not enough to push prices up. The lift in prices in Fremantle yesterday could have been quality related but the eastern seaboard growers are hoping this will follow suit next week with national quantities averaging 36,000 for the next 3 sales.

              Ag Concepts Fwd Prices as at 4 May, 2018

Micron

Date

Low

High

21

22-Aug-18

1840

1855

21

24-Oct-18

1740

1740


   Main Buyers (this week)

1

Fox & Lillie

5061

2

Tianyu

3691

3

Lempriere

3665

4

Techwool

3088

5

PJ Morris

2905

6

Seatech Ind

2485

7

Modiano

2440

8

Aust. Merino Exp.

2361

9

Kathaytex Aust.

2064

Eastern Market Indicators (AUD cents/kg clean)

1836 cents ê 10 cents compared with 27/04/2018

Northern Market Indicators (AUD cents/kg clean)

1892 cents ê 16 cents compared with 27/04/2018

AUD/USD Currency Exchange

0.7521 ê 0.0052 compared with 27/04/2018

27 April 2018

Friday, April 27, 2018

WEEKLY MARKET REPORT

Week Ending 27th April, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S43/17

This Week

M43/17

Last Sale

S42/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2763

2726n

2768n

-5

2324

+439

18

2361

2342

2355

+6

2178

+183

19

2105

2091

2088

+17

1897

+208

20

2005

1984

1981

+24

1591

+414

21

1969

1966

1952

+17

1473

+496

22

-

1956

-

+27 (M)

1393n (M)

+163

26

1343

1324n

1247

+96

1043

+300

28

993

1000

926

+67

738

+255

30

743

741

674

+69

579

+164

MC

1379n

1389n

1368n

+11

1165

+214

LEST WE FORGET

This week’s sale took on the unusual pattern of Tues/Thurs selling with the Anzac Day holiday in between, now widely regarded as our most important day of the year as more and more young people embrace the Anzac spirit and an ever increasing number of war-time stories emerge to re-inforce the significance of the day. Rumours of a solid market were confirmed on Tuesday as all sectors rallied as the AWEX EMI posted a 22 cent gain to a new high of 1847 to eclipse the previous record of 1834 at the end of February. The market may have suffered an Anzac day hangover on Thursday as the market for merino fleece types lost 5/15 cents in Sydney but a worrying 20 to 30 cents in the other 2 centres.  Despite the slight pull-back in the last session, the market still posted gains for all MPGs and the odd lot from Coonabarabran, Coolah and Gulgong with the “right specs” was 50 to 200 cents higher than their indicators.

Skirtings also benefitted from the renewed interest as, unlike their fleece counterparts, recorded rises over both days. The < 5% VM types up to 20 micron rose by 20/50 cents with burrier lots remaining rock solid all series. Cardings had a solid but unspectacular sale as most descriptions were quoted as firm to 20 cents higher than their previous values with a line of LKS from Wellington making an incredible 1050c (1630c clean). The revival of the Crossbred sector since Easter has been nothing short of spectacular with all microns adding 80 to 200 cents over the last 3 sales. The 130 cents jump for 25s in Melbourne last sale was outdone in Sydney with an incredible 149 cent climb this week as all other microns lifted by 30 to 90 cents.

The dramatic fall in the $A from just above 78 cents last Friday to 76 cents on Tuesday certainly helped the market in the opening session but couldn’t maintain the rise on Thursday even with a better FRX that has the $A at 77.75 cents. As stated last week the poorer selection of FLC  on offer is getting harder to average into orders as the high yielding and low VM types are becoming more scarce as just 37% of the FLC offering is below 1% VM compared to 50% 6 weeks ago. Also endangering the FLC prices as we move into the winter shearings is the lack of best topmaking style fleece - 17% back from 31% in the same time. Next week has 43,000 bales on offer and the cheaper markets in Melbourne/Fremantle could mean a steadier market all round.

                 Ag Concepts Fwd Prices as at 27 April, 2018

Micron

Date

Low

High

21

20-Jun-18

1930

1930

21

29-Aug-18

1800

1800

21

13-Mar-19

1660

1660

      Main Buyers (this week)

1

Techwool

7477

2

Fox & Lillie

4834

3

Tianyu

3445

4

Seatech Ind

2763

5

Aust. Merino Exp.

2691

6

PJ Morris

2096

7

Kathaytex Aust.

2063

8

Endeavour  Wool

2008

9

Modiano

1986

Eastern Market Indicators (AUD cents/kg clean)

1846 cents é 21 cents compared with 20/04/2018

Northern Market Indicators (AUD cents/kg clean)

1908 cents é 27 cents compared with 20/04/2018

AUD/USD Currency Exchange

0.7573 ê 0.0235 compared with 20/04/2018


20 April 2018

Friday, April 20, 2018

WEEKLY MARKET REPORT

Week Ending 20th April, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S42/17

This Week

M42/17

Last Sale

S41/17

Sydney Change

Last Year

Sydney (Wk41)

Sydney Yearly Change

17

2768n

2753n

2763

+5

2317

+451

18

2355

2344

2293

+62

2173

+182

19

2088

2090

2037

+51

1895

+193

20

1981

1983

1929

+52

1608

+373

21

1952

1951

1893

+59

1507

+445

22

-

1929

1854 (M)

+75 (M)

1410 (M)

+444 (M)

26

1247

1261n

1208

+39

1041

+206

28

926

943

899

+27

735

+191

30

674

688

638

+36

584n

+90

MC

1368n

1381n

1352n

+16

1159

+209

BACK INTO RECORD TERRITORY

With last week’s 54,000 bale offering behind us and production forecasts now prophesying a decline in wool production it wasn’t that surprising to see the market push further into record territory. The offering of 39,605 bales saw the EMI end the week just 9 cents short of its all time high set late February but it was the 21 and 22 micron indicators that set new highs. It is quite conceivable that we could see 21 microns reach 2000 cents clean in the coming weeks!

The pace gathered slowly as the week progressed and clearly it was the medium wools where the strongest competition was. Fine wools, which led the rises late last year appeared to have plateaued with fewer of the best style lines on offer. Seasonal conditions are now impacting the quality of the offering with fleece wools under 65% making up over half the offering. Buyers are struggling to fill orders with enough high yielding, sound lines so discounts for lower average types will likely increase. Competition was mainly from Chinese interests but this week saw increased interest from Indian connections who punted some time back that the market would fall. It seems their stock levels will have depleted so it was either suck it up and wade into the market or shut up shop.

Crossbred wools this week also posted solid gains to hit a two year high with fair to average XB clips back to averaging over $1000 a bale. Merino oddments also saw another strong week with the carding indicator rising for the fourth consecutive week, about 100 cents for the month.

Next week is looking promising as Fremantle (which sells for two hours after Sydney and Melbourne close) continues to strengthen, normally a positive sign for the coming week. There is a slightly higher offering next week of 43,648 bales which shouldn’t pose too many problems. There is almost no wool stored on hold and brokers receivals are starting to lighten off as the impact of essentially 12 months of below average rain stalls production. Winks might be the safest bet in town but the next safest bet would be that this market won’t drift much over the coming weeks. Wool sales straddle Anzac Day next week with MacWool to offer a stylish catalogue of 1085 bales on the second day.

                                                         Ag Concepts Fwd Prices as at 20 April, 2018

Micron

Date

Low

High

21

16-May-18

1930

1930

21

11-Jul-18

1810

1810

21

14-Nov-18

1730

1730

Main Buyers (this week)

1

Techwool

5729

2

Fox & Lillie

4782

3

Modiano

3004

4

PJ Morris

2735

5

Seatech Ind

2359

6

Tianyu

2143

7

Endeavour  Wool

2072

8

Aust. Merino Exp.

1681

9

Michell Aust.

1411

Eastern Market Indicators (AUD cents/kg clean)

1825 cents é 49 cents compared with 13/04/2018

Northern Market Indicators (AUD cents/kg clean)

1881 cents é 35 cents compared with 13/04/2018


AUD/USD Currency Exchange

0.7808 é 0.0058 compared with 13/04/2018

13 April 2018

Friday, April 13, 2018

WEEKLY MARKET REPORT

Week Ending 13th April, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S41/17

This Week

M41/17

Last Sale

S39/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2763

2723n

2764

-1

2317

+446

18

2293

2312

2301

-8

2173

+120

19

2037

2047

2037

0

1895

+142

20

1929

1918

1922

+7

1608

+321

21

1893

1878

1888

+5

1507

+386

22

-

1854

-

-4 (M)

1410 (M)

+444 (M)

26

1208

1204n

-

+6 (M)

1043 (M)

+161 (M)

28

899

908

859

+40

735

+164

30

638

638

610

+28

584n

+54

MC

1352n

1375n

1332

+20

1159

+193

BIG QUANTITY, NO PROBLEM!!

All participants, especially growers, were holding their collective breaths as this week’s sale commenced after the Easter recess last week. The large catalogue at the Easter Show and the forecast of a 57,000 bale offering had buyers wondering where all the wool was coming from?? Melbourne opened proceedings on Tuesday and what we feared did in fact happen. The market cheapened by 16 cents as < 18 micron retracted by 50/60 cents with others losing 10 to 20 cents. The market was mixed on Wednesday as Sydney fell to Melbourne’s level with them stabilising and Fremantle just in sellers’ favour. Futures traded better than pre-Easter levels which gave hope that the market may have bottomed. Thursday saw a significant turn-around in fortunes as all 3 centres posted double digit rises. By week’s end the EMI appreciated by just 4 cents to 1776 (16 micron the only real culprit) falling by 23 cents as all others were either side of unchanged.

Skirtings had a firm sale after a 20/30 cent fall on the opening day. All types recovered these losses in the final series to finish the sale solid. Cardings were the best performing sector of any as the 3 centres averaged 27 cent rises with LKS pushing the indicators up with gains of 25 to 50 cents with all other types fully firm and some LMS extreme. Crossbreds also looked to be in buyers’ favour as gains ranged from 20 to 40 cents for all microns bar 32s that fell around 10 cents.

An excellent result considering the sentiment early in the week. Despite all currencies used in wool trading appreciating between 0.7% and 1.2% against the AUD the wool market bucked that usually negative trend causing reaction on the AUD pricing locally and continuing upwards. The early sale results initially matched the general concern of buyers pre-sale that quality and the big quantity on offer was going to hamper the market’s ability to hold prices at the pre-Easter levels. By the end of the week this was not the case as forecast quantities for the next 3 weeks are averaging under 40,000 bales per week and the dearer futures market that led the turn-around in fortunes on Thursday indicates that the underlying factors in the market that demand is exceeding supply should hold wool growers in good stead for the short term. National quantities drop to 40,000 bales next week with Macwool offering 1050 bales on Wednesday with a favourable market predicted.

Ag Concepts Fwd Prices at 13 April, 2018

Micron

Date

Low

High

21

16-May-18

1855

1855

21

11-Jul-18

1780

1800

21

12-Jun-19

1600

1600

Main Buyers (This Week)

1

Fox & Lillie

6388

2

Techwool

6149

3

PJ Morris

3525

4

Aust. Merino Exp.

3503

5

Seatech Ind.

3338

6

Lempriere

3256

7

Tianyu

3214

8

Endeavour Wool

2518

9

Kathaytex Aust.

1151

Eastern Market Indicators (AUD cents/kg clean)

1776 cents é 4 cents compared with 29/03/2018

  Northern Market Indicators (AUD cents/kg clean)

1846 cents é 9 cents compared with 29/03/2018

  AUD/USD Currency Exchange

0.7750 é 0.0050 compared with 29/03/2018