Weekly Market Reports


17 November 2017

Friday, November 17, 2017

WEEKLY MARKET REPORT

Week Ending 17th November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S20/17

This Week

M20/17

Last Sale

S19/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2494

2465

2488

+6

1667

+827

18

2303

2306

2283

+20

1636

+667

19

2009

2005

2005

+4

1570

+439

20

1783

1765

1764

+19

1451

+332

21

1647

1634

1645

+2

1383

+264

22

1571n

1548n

1562n

+9

1368n

+203

26

1075

1065n

1103

-28

985n

+90

28

768

773

815

-47

668

+100

30

584

603

616

-32

560

+24

MC

1382n

1389

1348

+34

1103n

+279

 DON’S IN, MARKET STEADY!

The market took a breather this sale as it looked pretty hard to figure out which way buyers were pushing the market. By week’s end the market had edged a touch higher by 2 cents to 1683. The weaker FRX didn’t seem to help the market but the weaker A$ resulted in the market falling by 13 cents in $US terms to 1279 as the $A moved lower by over 1 cent. The market opened on a slightly dearer note but tailed off somewhat by Thursday to have all merino indicators edging just into positive territory. Some microns did add 15 to 25 cents -16.5s, 17.5 to 18.5 and 19 - while all others progressed by up to 10 cents. The less stylish selection than what had been offered over the past few sales being a factor in price movements. Even with the steadier market growers were happy to take the money as the clearance rate was 99% for the fleece offering in Sydney.

Skirtings also had an up and down sale as a strong opening led to a softer finish to the week. Finer types < 19 micron, below 5% VM ended the sale with their noses in front (up by about 10 cents) while the broader/burrier types held their levels from the past few sales. Growers are still very happy with these incredible levels for skirtings as only 18 bales were passed-in, 99.1% sold. Cardings continued to re-write the record books as the 3 MCIs all rose. Sydney (1382) and Fremantle (1366) added 35 to 45 cents (all types in this sector posted 30 to 50 cents rises) while Melbourne rose by 12 cents to 1389. We had a line of LKS from Condobolin make 822 cents!! If we see even small increases next week the MCIs on the east coast could crack an amazing 1400 cent barrier. It was only 2 years ago that 21s were just 1200 cents while 18 micron and finer ranged from 1400 to just 1460 for 16.5s!! Just when we thought crossbreds were well and truly on the way to recovery, they couldn’t maintain their meteoric rises of the past 2 sales as losses ranged from 10 cents (32 micron) to 50 cents for 28s, these big falls contributing to the small movements in regional indicators. 

A week of consolidation as movements in all microns of merino fleece/skirtings were minimal as cardings kept rocketing away and Crossbreds lost ground. With just over 50,000 bales on offer this sale was the largest since the opening sale after the winter recess (August) with Melbourne selling 56% of the total, its biggest catalogue since January. The turnover this sale topped $96.77m - the highest weekly total since 2002 when 74,500 bales were offered. The easing of the market on the east coast on the final day of selling could be a sign that the peak has been reached (time will tell) but an encouraging factor was the Fremantle market finishing slightly dearer which can be a good pointer for things to come next sale under another big selection of 44,000 bales - we wait with baited breath for the outcome.

Good news to come out of the much anticipated AWI AGM held in Sydney today. Don has succeeded in his bid to be voted onto the board of directors after a month of lobbying eligible voters. His vote count (136,384) was only 2nd to one on the board’s incumbents, Collette Garnsey with a total of 205, 584. The final position that was up for re-election was won by James Morgan with 135,892 with Paul Cocking missing out with 128,608 votes. The new board met immediately after counting and voted Wally Merriman to retain his role as chairman.    

 Concepts Fwd Prices at 17 November 2017

Micron

Date

Low

High

21

24-Apr-18

1560

1560

21

23-May-18

1570

1570

Main Buyers (this week)

1

Techwool

8682

2

Seatech Ind.

5233

3

Tianyu Wool

4238

4

Fox & Lillie

4155

5

Australian Merino

3387

6

PJ Morris

2687

7

Modiano

2458

8

Lempriere

1691

9

Kathaytex Aust.

1675

  

Eastern Market Indicators (AUD cents/kg clean)

1683 cents é 2 cents compared with 10/11/2017

Northern Market Indicators (AUD cents/kg clean)

1776 cents é 9 cents compared with 10/11/2017

AUD/USD Currency Exchange

0.7600 ê 0.0089 compared with 10/11/2017

10 November 2017

Friday, November 10, 2017

WEEKLY MARKET REPORT

Week Ending 10th November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX  

This Week  

S19/17  

This Week  

M19/17  

Last Sale  

S18/17  

Sydney  

Change  

Last Year  

Sydney  

Sydney Yearly  

Change  

17

2488

2449n

2454

+34

1626

+862

18

2283

2318

2246

+37

1610

+673

19

2005

2008

1968

+37

1530

+475

20

1764

1758

1713

+51

1420

+344

21

1645

1636

1608

+37

1366

+279

22

1562n

1560

1511n

+51

1348n

+214

26

1103

1093

1048

+55

996n

+7

28

815

828

728

+87

674

+141

30

616

616

536

+80

555

+61

MC

1348

1377n

1289n

+59

1092

+256

 

WHERE TO NOW?

The market continued on in the same vein this sale to smash last week’s record level the AWEX EMI up by a whopping 58 cents to 1681 - a rise of 103 cents in the past fortnight- as the FRX looked to be locked in the 76.5 to 77 cent range. This steady rate playing into buyers’ hands as the rise in $US terms was 40 cents to 1293. Increases were across the board, 30 to 50 cents with some of the superior super-fine types up to 150 cents higher. Just 13 bales of fleece were passed-in in Sydney clearing 99.8% (6632) bales as all micron ranges from 16 to 22 are at 5 year highs.

Skirtings kept up with the rises in the fleece room as the burrier/broader types (> 19 micron, > 5%VM) took the limelight with gains of 40 to 60 cents while the finer, lower VM lots could only muster 20 cent increases. It seems that the sky’s the limit for the carding sector as the 3 centres averaged 63 cent gains as the MCI’s range from 1323 to 1377 - all types posted 50 to 60 cent jumps with some LMS up to 100 cents dearer as just 7 bales failed to find a new home selling 99.4%. The MCI has jumped 259 cents (1089 to 1348) since early September. At long last the XB sector was the standout performer giving long suffering growers some much needed good news. Finer microns < 26 were 50 cents higher while > 28s posted 80/90 cent gains 20% for some microns).    

A remarkable market as buyers scrambled to secure volume. The 42,745 bales sold across the country this week grossed $84m or $1965/bale, quite incredible with 98.7% sold. As the market rose rapidly some buyers “slammed the bag” and adapted a wait and see approach and left it up to the “gang of four” to set these new levels buying 60% of the fleece selection and 70% of XBs. Techwool, our largest buyer, topped the list for FLC, SKTs and XBs only to be outdone by Michell in carding sector.

Not only are we asking where will the market pull up, but who will make up the new Board of AWI after next Friday’s AGM.

Don has received much support from within our client base and is very grateful for the confidence shown. Voting closes next Wednesday, so mailed votes really needed to be in the post today. Online voting will close 5pm Wednesday. You have to appoint a proxy holder otherwise your vote will be invalid. All results will be in next week’s report.

Macwool will offer 606 bales next Wednesday.

Ag Concepts Fwd Prices at 10 November 2017

Micron

Date

Low

High

Micron

Date

Low

High

21

13-Dec-17

1650

1650

21

30-May-18

1545

1545

21

14-Feb-18

1605

1605

21

11-Jul-18

1500

1520

Main Buyers (this week)

1   

Techwool

7433

2   

Modiano

3879

3   

Seatech Ind.  

3819

4   

Fox & Lillie

3749

5   

Tianyu Wool

2949

6   

PJ Morris  

2900

7   

Australian Merino

2842

8   

Michell Aust.

2214

9   

Kathaytex Aust.  

1486

  

Eastern Market Indicators (AUD cents/kg clean)

1681 cents é 58 cents compared with 3/11/2017

Northern Market Indicators (AUD cents/kg clean)

1767 cents é 49 cents compared with 3/11/2017

AUD/USD Currency Exchange

0.7689 ó 0.0028 compared with 3/11/2017

3 November 2017

Friday, November 03, 2017

WEEKLY MARKET REPORT

Week Ending 3rd November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S18/17

This Week

M18/17

Last Sale

S17/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2454

2354n

2377

+77

1643

+811

18

2246

2207

2201

+45

1622

+624

19

1968

1947

1920

+48

1545

+423

20

1713

1710

1668

+45

1439

+274

21

1608

1600

1560

+48

1378

+230

22

1511n

1503

1483n

+28

1352n

+159

26

1048

1048n

1014

+34

1008n

+40

28

728

741

707

+21

706

+22

30

536

531

515

+21

565

-29

MC

1289n

1311n

1233n

+56

1120n

+169

 

AWI VOTING OPEN, RECORDS BROKEN – EVEN XBs DEARER!!

The market marched on this week as several records were broken. The AWEX EMI jumped by 45 cents to 1623 - 25% above the level the same sale 12 months ago. This now an all time high beating the August peak of 1614c and the old AWC indicator in April 1988 of 1584 cents. The rise was 35 cents in US$ terms to 1252 as the FRX floated between 77.2 and 76.5 cents. The rises were across all microns and types (30 to 75 cent gains with some superior types over 130 cents better) as buyers warmed up for next week’s designated super-fine sale. The 19.5 MPG is at an all time high (1850) since its introduction to market reports in 2001 as 20 to 23s close in on record levels.

Skirtings sold to excellent competitive tension as 19 micron and finer < 3% VM shot up by 80/100 cents while broader, burrier types with 5 to 10% VM looked 50 cents dearer as just 15 bales were passed-in. Cardings created new records as the 3 centres added significant gains to their MCIs. All types in this sector jumped by 40 to 100 cents to have the MCI at 1289 in Sydney as every bale on offer was snapped up. Crossbreds were also caught up in the buying frenzy to snap an 11 week falling run as rises were 20 to 35 cents for 25 to 30 microns - a very welcome rise. The total bales sold this sale nationally were 45,193 that grossed $87.18m which equates to $1929/bale. It was way back in 1996 that a single week’s sold wool came to a similar value but the total bales sold were 140,000 - $622/bale!! This works out to a 310% rise in the market.

Still plenty of news around regarding AWI and the impending elections for positions on the board on November 17th. Growers who are eligible to vote should have received their “how to vote” papers. There has been plenty of argy-bargy amongst certain individuals in the rural press and this could be the most important elections in AWI’s history. In the last election in 2013 just 18.6% (204,488) of the 1.1m eligible votes were cast and a total of 98.8% (202,211) were proxy votes, ie left to the chairman as to whom the vote was to be directed. It is imperative that every grower cast their own vote and not have someone else decide who sits on the board. We all know this situation would never happen in any level of politics so why would we tolerate it at AWI!!

Ag Concepts Fwd Prices at 3 November 2017

Micron

Date

Low

High

21

17-Jan-18

1575

1575

21

28-Mar-18

1530

1530

21

11-Jul-18

1470

1470

Main Buyers (this week)

Techwool

4963  

Fox & Lillie

4530  

Modiano

4395  

Tianyu Wool

3851  

Australian Merino

3424  

Seatech Ind.

3217  

Michell Aust.

2971  

Lempriere

2351  

PJ Morris

2234  

  

Eastern Market Indicators (AUD cents/kg clean)

1623 cents é 45 cents compared with 27/10/2017

Northern Market Indicators (AUD cents/kg clean)

1718 cents é 45 cents compared with 27/10/2017

AUD/USD Currency Exchange

0.7717 ó 0.0000  compared with 27/10/2017

27 October 2017

Friday, October 27, 2017

WEEKLY MARKET REPORT

Week Ending 27th October, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S17/17

This Week

M17/17

Last Sale

S16/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2377

2273n

2338

+39

1669

+708

18

2201

2153

2161

+40

1641

+560

19

1920

1892

1885

+35

1573

+347

20

1668

1653

1657

+11

1468

+200

21

1560

1556

1553

+7

1415n

+145

22

1483n

1491n

1476n

+7

1388n

+95

26

1014

1014

1043

-29

1084n (M)

-70 (M)

28

707

705

726

-19

735

-28

30

515

518n

521

-6

594

-79

MC

1233n

1239n

1206

+27

1128n

+105

 BILLION DOLLAR WOOL CLIP ALREADY!

After a shaky start the market consolidated late in the sale to see the AWEX EMI post a 10 cent gain for the series to 1578.  The impetus for the rising market was the favourable shift in the FRX, 76.85 on Wednesday night, 2% fall - from a high of 78.50 cents last Thursday. This saw the EMI in $US terms actually lose ground to 1218, a discount of 13 cents. The market looked as though it was split in two as the sale opened, finer than 19 micron on the increase and broader types cheaper, but the 2nd day of selling saw renewed buying activity to have < 19.5 20 to 45 cents to the good with 20s and broader 10 cents better as all types, regardless of VM, colour and (to an extent) mid-breaks benefitted.
Skirtings continued on their merry way as the superior style types with < 5% VM were up to 50 cents higher with most lots 20 dearer. Growers warmed to these new higher levels as just 8 bales were passed-in from 2038 offered!! Cardings also are at lofty heights with the 3 regional MCIs now averaging 1236 cents after all types gained 20/30 cents. Again, growers liked the increased prices as only 9 bales failed to find a new home from 1273! These levels now equal with any peak over the past 5 years. Crossbreds continue to frustrate growers as the finer microns, 25 to 28s, fell another 20 to 30 cents as the broader types were in buyers’ favour as high volumes outside Australia still hinder this sector.  
A milestone week as the value of wool sold so far this season broke through the $billion mark ($1,004.66m). This equates to $1792/bale for every bale. This is the earliest point of the season since 2002 that this has happened. For the same sale last year the value was only $800 million (26% lower) with the volume of wool sold only 12% down on this season.

Ram sales are just about wound up in this area as the focus moves to the south of NSW. A few results are; Glenwood at Wellington topped at $5600 to average $1855 to clear 92%; Grogansworth at Bowning achieved a clearance rate of 98% with a top price of $4750 and an average of $2075, up by a healthy $360 from last year. Next sale has 47,000 bales rostered in the 3 centres with the market to continue in the same vein, good for Merino and tough for Crossbreds.

Ag Concepts Fwd Prices at 27 October 2017

Micron

Date

Low

High

21

28-Feb-18

1530

1530

21

28-Mar-18

1520

1520

Main Buyers (this week)

1

Tianyu Wool

4432

2

Fox & Lillie

4226

3

Techwool

3618

4

Australian Merino

3456

5

Lempriere

2771

6

Seatech Ind.

2682

Eastern Market Indicators (AUD cents/kg clean)

1578 cents é 10 cents compared with 20/10/2017

Northern Market Indicators (AUD cents/kg clean)

1673 cents é 16 cents compared with 20/10/2017

AUD/USD Currency Exchange

0.7717 ê 0.0135  compared with 20/10/2017

20 October 2017

Friday, October 20, 2017

WEEKLY MARKET REPORT

Week Ending 20th October, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S16/17

This Week

M16/17

Last Sale

S15/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2338

2284n

2301

+37

1661

+677

18

2161

2144

2156

+5

1650

+511

19

1885

1888

1886

-1

1572

+313

20

1657

1645

1681n

-24

1466

+191

21

1553

1550

1589n

-36

1414

+139

22

1476n

1481

-

-21 (M)

1382 (M)

+94

26

1043

1049n

1053

-10

1065n

-22

28

726

741

753

-27

746

-20

30

521

514

526

-5

609

-88

MC

1206

1209n

1188n

+18

1099n

+107

AT LONG LAST – SOME MORE RAIN!!

The market barely moved this sale as the AWEX EMI could only manage a 2 cent rise to 1568 and in $US terms was also marginally better, up by 7 cents to 1231. This equates to an average lift of 223 cents (19%) on the same week last year. The appreciation in the FRX by over 1.75 cents at one stage and the lift in volume by 7690 bales (20%) did little to deter buyers, especially those chasing the superior superfine types on offer in Sydney. By week’s end 17.5 to 19 gained up to 15 cents while finer types < 17 micron were better by 35/45 cents with lots bought by Italian mills commanding up to 200 cent premiums. The broader microns > 19.5 couldn’t keep pace with their more fancied finer types to lose 20 to 40 cents.
Skirtings also looked to keep up with their fleece counterparts as the stylish selection < 19 micron and below 5% VM posted 20 to 30 cent gains while all other types remained solid. Cardings continued on their merry way as the 3 centres averaged a 26 cent lift with all MCIs now above 1200 cents. LKS were the standout of this sector (up by 40/60 cents) while CRT/STN added 15 to 25 cents. Crossbreds are still out of favour as losses ranged from 10 to 30 cents.
Of great interest next Tuesday will be the AWI hierarchy having to front Senate estimates for the third time in 12 months. The media attention on the Chairman has been relentless, no doubt to gain the interest of the politicians. It will be interesting to see what they uncover.
Meanwhile voting papers for the AGM elections will be sent out via post and email next Monday with voting to commence immediately. I have sent out over 4000 letters to AWI shareholders this week and am receiving plenty of positive feedback. I urge you to take an interest in this election and cast your votes and not give your proxy to the Chairman, not because I have an issue with him personally, but I do not agree with the use of proxies given to a Chairman to have the final say on who sits on the Board. I believe this should remain independent and the shareholders have the final say. I appreciate any support you can offer.

Next week 43,500 bales will be offered nationally with Macwool to sell on Thursday. 

Ag Concepts Fwd Prices at 20 October 2017

Micron

Date

Low

High

21

15-Nov-17

1540

1540

21

17-Jan-18

1535

1535

21

13-Jun-18

1500

1500

 Main Buyers (this week)

1

Fox & Lillie

4974

2

Techwool

4869

3

Tianyu Wool

3917

4

Seatech Ind.

3683

5

Australian Merino

3217

6

Modiano

2873

7

Lempriere

2680

8

PJ Morris

2157

9

Endeavour Wool

1930

Eastern Market Indicators (AUD cents/kg clean)

1568 cents é 2 cents compared with 13/10/2017

Northern Market Indicators (AUD cents/kg clean)

1657 cents é 1 cents compared with 13/10/2017

AUD/USD Currency Exchange

0.7852 é 0.0033  compared with 13/10/2017

13 October 2017

Friday, October 13, 2017


6 October 2017

Friday, October 06, 2017

WEEKLY MARKET REPORT

Week Ending 6th October, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S14/17

This Week

M14/17

Last Sale

S13/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2253

2230n

2238

+15

1442n

+811

18

2112

2103

2072

+40

1429n

+683

19

1844

1831

1791

+53

1314n

+530

20

1654

1661

1597

+57

1248n

+406

21

1571

1569

1532n

+39

1245n

+326

22

1507n

1500n

1477n

+30

1230n

+277

26

1069n

1096n

1093n

-24

1064n

+5

28

788

805

798

-10

854

-66

30

535

551n

558n

-23

809

-274

MC

1163n

1146n

1142

+21

1073n

+90


DOLLAR HELPS KICK START THINGS - RAIN GUAGE STILL EMPTY

After a couple of weeks of flat-lining where the EMI only moved a few cents either way, it was pleasing to see the merino sector spring back to life across all categories. The fall in the dollar of around two cents USD finally had some traction which, when added with increased interest, saw some significant gains across all merino indicators. It was the low VM, low mid-break wools which saw the best of the competition but not limited to these types as buyers fought for quantity among the lesser types. What has become very evident over the past months is grower acceptance to shorter shearing intervals. We are seeing a much greater quantity of 6-9 month shearing, delivering wools in the 60-85mm bracket which the market is looking for. Whilst the discounts for longer wools aren’t always pronounced, the competition on the shorter wools are always more predictable. The skirting market followed similar trends as the fleece sector with rises of 20-50 cents over the two days selling. As usual a limited selection of cardings saw extreme competition in all three centres with some astounding prices for good crutchings and locks.

The crossbred market didn’t follow the same pattern and struggled to maintain levels although, what is apparent is that well prepared crossbred clips (which aren’t that common these days) sold much better than those thrown together.

Some interesting stats released from AWEX this week on comparisons year to date against the last five seasons. The volume of wool sold to date this year is 8% higher than last year and 5% higher than in 2013, yet the average value has increased by$227 a bale (15%) against last year and $542 a bale (44%) from 2013. For fleece wool (18.5 and finer) it has increased by $1000 a bale or 62% to $2600 a bale since 2013. Coarser than 18.5 it has risen to an average of $1957 a bale, an increase of $576 a bale. The only sector to not be at a peak is crossbred which, at an average of $927 a bale, is down $138 from their peak two years ago. The EMI this week at 1550 is exactly 250 cents higher than the same week last year.

Macwool will offer 724 bales next Thursday with another good week expected.  

Ag Concepts Fwd Prices at 6 October 2017

Micron

Date

Low

High

21

8-Nov-17

1560

1560

21

28-Feb-18

1520

1520

21

23-May-18

1500

1500

 

1

Fox & Lillie

4342

2

Techwool

3513

3

Tianyu Wool

2993

4

Seatech Ind.

2755

5

Aust Merino Exp.

2359

6

Modiano

1998

7

Endeavour Wool

1866

8

PJ Morris Wool

1790

9

Michell Aust.

1707

Eastern Market Indicators (AUD cents/kg clean)

1550 cents é 28 cents compared with 29/09/2017

Northern Market Indicators (AUD cents/kg clean)

1629 cents é 30 cents compared with 29/09/2017

AUD/USD Currency Exchange

0.7831 é 0.0010  compared with 29/09/2017

29 September 2017

Friday, September 29, 2017

WEEKLY MARKET REPORT

Week Ending 29 th September, 2017

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S13/17

This Week

M13/17

Last Sale

S12/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2238

2199n

2228

+10

1613

+625

18

2072

2078

2072

0

1596

+476

19

1791

1790

1778

+13

1527

+264

20

1597

1604

1588

+9

1405

+192

21

1532n

1524

1540

-8

1393

+139

22

1477n

1476n

1477n

0

1364n

+113

26

1093n

1103n

1101

-8

1123n

-30

28

798

813

813

-15

770

+28

30

558n

563

586

-28

603

-45

MC

1142

1139n

1113n

+29

1063n

+79


MARKET FLAT- RAIN GAUGE EMPTY

For the 2nd week in a row the wool market struggled to move in any direction as the AWEX EMI lost just 3 cents to 1522. The local movements were a mirror image of the previous series as Sydney edged forward by 3 cents and Melbourne gave up 7 cents. Some might say a disappointing sale given the quality and style of the selection in Sydney and the almost 2 cent depreciation in the FRX to just above 78 cents. This shift in the A$ saw a 30 cent fall in US$ terms to 1190. Movements were small as most microns were in sellers’ favour to 10 cents better (bar 21s back by 8 cents) but with the superior types in Sydney came some healthy premiums. Some cracking super-fine types we offered from Merriwa and Mudgee looked to be 100 to 200 cents above their indicators with some low mid-break types also selling well above expectations.

Skirtings took until the final day of selling to edge their nose in front. After conceding up to 20 cents early in the series, a reversal in fortunes saw most types and descriptions finish about 10 cents to the good. Cardings rose for the 4th sale in a row as the 2 East Coast centres averaged a 25 cent jump while all types added 15 to 35 cents to their previous levels. It was a different story for the XB sector as it suffered losses for the 3rd sale in a row. 26, 28 and 32 microns fell by 10/15 cents while 30s lost 30 cents.

More to come out of the Nanjing Wool Market was the announcement of 2 E-commerce platforms for all things wool in China with one already operating and includes functions of providing finance and logistics. A common theme from the conference was the need for further industry programs within the education, promotion and innovation fields as most attendees thought the current high prices can be maintained by innovating new products as double faced and fake fur products have created more demand.

A final remainder that you only have until next Friday to become a shareholder of AWI if you aren’t already one. Almost half of wool levy payers have not registered to be a shareholder. Macwool will offer 710 bales next Wednesday.


Ag Concepts Fwd Prices at 29/09/2017

Micron

Date

Low

High

21

22-Nov-2017

1520

1520

Main Buyers (This Week)

1

Tianyu Wool

3997

2

Fox & Lillie

3867

3

Techwool

3330

4

Seatech Ind.

2120

5

PJ Morris Wool

1988

6

Aust. Merino Exp.

1386

7

G Schneider

1296

8

Michell Aust.

1175

9

Lempriere Aust.

923

Eastern Market Indicators (AUD cents/kg clean)

1522 cents ê3 cents compared with 22/09/2017

Northern Market Indicators (AUD cents/kg clean)

1599 cents é 3 cents compared with 22/09/2017

AUD/USD Currency Exchange

0.7821 ê 0.0182 compared with 22/09/2017


22 September 2017

Monday, September 25, 2017

WEEKLY MARKET REPORT

Week Ending 22nd September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S12/17

This Week

M12/17

Last Sale

S11/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2228

2180n

2207

+21

1577

+651

18

2072

2065

2078

-6

1549

+523

19

1778

1775

1775

+3

1491

+287

20

1588

1612

1595

-7

1410

+178

21

1540

1548

1547

-7

1395

+145

22

1477n

1490

1473n

+4

1386n

+91

26

1101

1100n

1107

-6

1145n

-44

28

813

813

816

-3

748

+65

30

586

573n

601

-15

585

+1

MC

1113n

1117n

1094

+19

1062n

+51


AWI BOARD CANDIDATES LOCKED AND LOADED!

We were very appreciative last week at the extent of support shown for the nomination of Don Macdonald as a candidate for the AWI Board elections in November. Growers have until the 6th of October to check their shareholder entitlements and their eligibility to vote. Polling will open around October 23 and close 15th November. There are five candidates for three positions. There are several issues that will form the centrepiece of candidate’s campaigns, negative press being one of them. With a market indicator at 1525, one should expect all to be rosy, but it isn’t! More in the coming weeks.

This week’s wool market was “steady as she goes” as both selling days mirrored each other with 3 cent rises in Sydney. The market in Melbourne did not fare as well to lose 4 cents for the sale, this resulting in the AWEX EMI to remain unchanged for the week at 1525 cents. The shift in US$ terms was minute, just a 1 cent fall to 1220 as the exchange rate looks to be stuck at 80 cents. Super-fine types looked to have warmed up for the 2nd designated super-fine sale of the season next week as 17/17.5s added 10 to 20 cents while 18.5 to 19.5 and 22s were in sellers’ favour with all others in buyers’ favour as the odd lot with good specs looked up to 50 cents better than their indicators while high mid-break lots attracted higher discounts than in previous sales.

The talk of a dearer market didn’t quite eventuate this week (some buyers reporting tight finance reserves before their letters of credit flow in) but all of the 400 delegates that attended the Nanjing wool conference last weekend are confident and the mood buoyant and a rise is only a matter of ‘when’ not ‘if’. Local traders are comfortable operating at the current levels as prices can be passed down the processing chain. Up to the current sale volumes are 10% above last season but this could change as the prolonged dry weather has shearing well ahead of schedule and is also forcing growers to off-load sheep that aren’t being grazed on failed crops as hand feeding costs start to soar whilst hay and grain prices take off as the prospect of a decent harvest over an ever increasing area diminishes daily.

Ag Concepts Fwd Prices at 22 September 2017

Micron

Date

Low

High

21

08-Nov-17

1530

1540

21

06-Dec-17

1540

1540



Main Buyers (this week)

1

Fox & Lillie

5746

2

Techwool

4253

3

Aust Merino Exp.

3341

4

Tianyu Wool

2710

5

Seatech Ind.

2410

6

PJ Morris Wool

1948

7

Endeavour Wool

1672

8

Kathaytex Aust.

1491

9

G Schneider

1442

Eastern Market Indicators (AUD cents/kg clean)

 1525 cents ó 0 cents compared with 15/09/2017

 Northern Market Indicators (AUD cents/kg clean)

1590 cents é 6 cents compared with 15/09/2017

AUD/USD Currency Exchange

0.8003 é 0.0005  compared with 15/09/2017

15 September 2017

Friday, September 15, 2017

WEEKLY MARKET REPORT

Week Ending 15th September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S10/17

This Week

M10/17

Last Sale

S09/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2207

2213n

2273

-66

1605

+602

18

2078

2068

2139

-61

1580

+498

19

1775

1794

1839

-64

1517

+258

20

1595

1607

1646

-51

1452

+43

21

1547

1551

1597

-50

1438

+109

22

1473n

1463

1523n

-50

1416n

+57

26

1107

1123n

1141

-34

1175n

-68

28

816

833

852

-36

788

+28

30

601

590n

636

-35

625

-24

MC

1094

1088n

1089n

+5

1053

+41

MARKET BACK TO SQUARE #1

This week’s market could not maintain last sale’s levels as savage falls on the opening day were met by consolidation in the final session. Falls extended across all microns ranging from 50c to 70c. The AWEX EMI lost 31c for the week to finish at 1525c - in US $ terms the fall was 22c to 1221c. Only the better style and finer micron lots escaped the carnage of the losses quoted above (20/30 cent falls). Growers were caught by the surprisingly large correction to pass in a total of 20% of fleece lines for the week.

Merino skirtings also suffered the same fate as their fleece counterparts with similar patterns for both days. Most merino skirtings were 20c to 30c cheaper with the < 3% VM least affected with 19microns and coarser 10c to 20c from last week’s levels. Again only the finer, better styled types looked to be only marginally cheaper for the sale. The carding sector was the only sector to finish the sale in positive territory as all types were 10c to 15c to the good. Crossbreds followed the lead of their merino counterparts with all micron ranges 20c to 30c cheaper.

The opening 2 sales after the annual winter recess in August yielded great results as the EMI rose 92c but this gain has now been completely wiped out over the past month as the indicator is back to exactly the same level it finished on in early July before the recess. Reasons for the fall do vary but most exporters and traders look to have weakened buyer confidence due to FRX, slowing of new business, increased volume of wool sold which has restricted buyers’ ability to obtain adequate finance to fund further purchases and the selection of types coming onto the market (especially fleece wools) with abnormally high mid-breaks.

Many of you may have been contacted this week to sign an AWI Director Nomination form on behalf of Don Macdonald. 100 eligible shareholder signatures were required which, as we found out, was harder than we thought as around 40% of wool tax levy payers have not become shareholders. A couple of weeks ago woolgrowers were sent two letters from AWI advising them of levies paid in the last three years. One letter was to eligible shareholders stating their voting entitlements. The other letter was to levy payers inviting them to become a shareholder. This letter also showed the amount of wool tax paid during the last three years. If you received the latter we would urge you to fill in the form and lodge it either online or by mail.

Macwool will offer 1030 bales next Wednesday. Let's hope there's good news from the Nanjing Wool Conference.

Main Buyers (This Week)

1

Fox & Lillie

4264

2

Aust Merino Exp.

3278

3

Techwool

3204

4

Tianyu Wool

3033

5

Seatech Ind.

2646

6

PJ Morris Wool

2347

7

Kathaytex Aust.

1715

8

G Schneider

1400

9

New England Wool

736

            Eastern Market Indicators (AUD cents/kg clean)

            1525 cents ê 31 cents compared with 08/09/2017

            Northern Market Indicators (AUD cents/kg clean)

            1590 cents ê 38 cents compared with 08/09/2017

AUD/USD Currency Exchange

0.8008 é 0.0017  compared with 08/09/2017