Weekly Market Reports


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

8 September 2017

Friday, September 08, 2017

WEEKLY MARKET REPORT

Week Ending 8th 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

2273

2263

2315

-42

1593

+680

18

2139

2122

2186

-47

1561

+578

19

1839

1848

1838

+1

1498

+341

20

1646

1646

1643

+3

1460

+186

21

1597

1588

1598

-1

1445

+152

22

1523n

1509n

1518n

+5

1436n

+87

26

1141

1135n

1125

+16

1167n

-26

28

852

836

848

+4

771

+81

30

636

625

633

+3

619n

+17

MC

1089n

1086

1086n

+3

1049

+40

MARKET FLATTENS OUT!

The market flattened out this week as the AWEX EMI moved by the barest of margins on both days, down by 1 cent each day, a 2 cent fall for the series to 1556. The lift in the A$ to over 80 cents saw the numbers move ahead in US$ terms by 12 cents to 1243. The market again looked to split into 2 as it did the previous sale but not in the same pattern as finer types - < 18.5 - fell out of favour to the tune of 20 to 50 cents undoing all the good work of last sale. The broader microns on offer from 19 to 23 were quoted in sellers’ favour by up to 10 cents (clawing back some of the 20 to 40 cent losses from last sale). Perhaps it was the lesser style finer types that were on offer this week and the rise in the FRX that weighed the market down and had buyers pulling back their price idea for sub 18.5 microns - this a disappointment to growers that missed last week’s sale.

The scenario was almost a carbon copy for merino skirtings with the fleece room. The better style low VM types, < 17.5 micron and 3% VM fell by 20/30 cents. The broader, burrier lots (over 18 micron and 5% VM), after a sluggish opening session, gained momentum to end the sale about 10 cents dearer. Cardings halted their falling trend by the barest of margins to have most types in this sector up to 5 cents to the good. Crossbreds also reversed their falling trend of last sale (bar 25s) losing 10 cents as all other microns from 26 to 32 added 5 to 15 cents.

A sale of consolidation as (bar the fine fleece and skirtings being readjusted by the exporters) other sectors were pretty much unchanged despite the A$ climbing to over 80 cents a few times this week. Fine wools again demonstrated how fickle they can be - flavour of the month one week and almost neglected the next! Quantity has had no bearing on price movement, rather quality and FRX movements look to be dictating price. Early in the year all the talk was of the A$ drifting lower to below 70 cents. This certainly has not been the case as now the $ looks settled around the 80 cent mark and, with every new development coming out of Nth Korea, stock markets get nervous and react to what might be on the horizon.

Ram sales are in full swing with excellent results being reported. Coddington Uardy Poll at Wellington was 1st cab off the rank with a top price of $9,500 to average $1,933 for 108 rams sold. Kerin Poll at Yeoval broke some national records at their ram sale. All 359 rams penned were sold to average $2,457 - $211 higher than last year. The top price was $26,000 and the sale grossed an incredible $882,000. Haddon Rig sold a combination of Poll and Horned rams to sell 145 in total to average $2,638.

Ag Concepts Fwd Prices at 8 September 2017

Micron

Date

Low

High

21

25-Oct-17

1560

1560

21

13-Dec-17

1520

1520

Main Buyers (This Week)

1

Fox & Lillie 

5120

2

Techwool

3717

3

Lempriere Aust.

3488

4

Aust Merino Exp.

3327

5

PJ Morris Wool

2673

6

Seatech Ind.

2164

 

Eastern Market Indicators (AUD cents/kg clean)

1556 cents ê 2 cents compared with 01/09/2017

Northern Market Indicators (AUD cents/kg clean)

1628 cents ê 8 cents compared with 01/09/2017

AUD/USD Currency Exchange

0.7991 é 0.0090  compared with 01/09/2017

1 September 2017

Friday, September 01, 2017

WEEKLY MARKET REPORT

Week Ending 1st September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S09/17

This Week

M09/17

Last Sale

S08/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2315

2290

2274

+41

1599n

+716

18

2186

2149

2169

+17

1567

+619

19

1838

1856

1862

-24

1513

+325

20

1643

1645

1663

-20

1490

+153

21

1598

1577

1640n

-42

1480

+118

22

1518n

1516

-

0

1462n

+56

26

1125

1121n

1149n

-24

1167n

-42

28

848

850

883n

-35

791

+57

30

633

628n

658n

-25

671n (M)

-43 (M)

MC

1086n

1080n

1102

-16

1056

+30

NEW CORE MACHINE UP AND RUNNING!

The market had a topsy-turvy series as the market looked to split into 2 as 18.5 and broader struggled to find a level and finer than this micron benefitted from renewed competition as a superior selection was on offer in Sydney. By week’s end the EMI had lost just 14 cents (0.9%) to 1558 after giving up 23 cents on the opening day - the high A$ at 79.7 on Wednesday not helping - only to claw back 9 cents in the final session. The move was also minute in US$ terms, -9 cents to 1231.  The excellent array of super-fine types saw these < 18 micron post solid gains of 15 to 50 cents and up to 200 cents for selected “spinner and superior” style lots and some even commanding a 300/400 cent premium. Broader microns opened the sale (30/50 cheaper) but did recover to finish the week 20/40 back with lots containing colour/cott, high mid-breaks and high VM discounted 50 to 80 cents.

Skirtings followed a similar pattern to the fleece room - a tough opening day to recover by week’s end. Types containing < 5% VM testing finer than 18 micron were par to 100 cents dearer for the odd cracking lot depending on style and VM. We had BKN from Mudgee make 1410 cents while BLS from the same grower fetched 1173 - incredible money. 19 micron and broader with higher burr content with cott/colour were quoted 30/50 cents cheaper. Cardings again struggled to find a level as all types in this sector fell around 15 cents. Crossbreds were also on the receiving end of the initial negative tone losing 15 to 35 cents before stabilising on Thursday, this sector having the highest pass-in rate of 18%.

The market has certainly made a hasty retreat from its high point of 2 weeks ago (1614 to 1549 on Wednesday) a 65 cent fall over 3 selling days. This, however, was not as rapid as the preceding rises of the previous fortnight - a 92 cent lift from 1522 to 1614. Corrections can be swift either up or down as the past 4 sales have seen but maybe a new level has been set. Buyers did report business being written at the end of last week but at what price is still up for debate. The sluggish start down to a “new level” did lead to wool being booked up on Wednesday night in China, India and Italy, thus the renewed activity on Thursday that transferred into an improving market. The competition was intense on these better style types as the Chinese pushed the Italians on virtually every lot but Italy prevailed to buy almost all of the selection. Buying patterns from all processors is generally strong as all and sundry are keen to fill their supply chains while better wools hit the market but much will depend on consumer attitude at the retail end as to whether the market can be sustained at these prices.

After a 2 week instillation of our new core machine we started testing on Tuesday. All seems to be running well with the odd teething problem as we had to forgo next week’s sale (S10) but back on track for Sale 11, Thursday 14th, September.

Ag Concepts Fwd Prices at 1 September 2017

Micron

Date

Low

High

21

25-Oct-17

1550

1550

21

24-Jan-18

1515

1515

21

28-Feb-18

1515

1515

Main Buyers (This Week)

1

Fox & Lillie 

5538

2

Techwool

1080

3

Lempriere Aust.

3296

4

Aust Merino Exp.

3050

5

Seatech Ind.

2686

6

PJ Morris Wool

2653

7

Kathaytex Aust.

2227

8

Michell Aust.

2177

9

Tianyu

2075

 

Eastern Market Indicators (AUD cents/kg clean)

1558 cents ê 14 cents compared with 25/08//2017

Northern Market Indicators (AUD cents/kg clean)

1636 cents ê 14 cents compared with 25/08/2017

AUD/USD Currency Exchange

0.7901 é 0.0010  compared with 25/08/2017

25 August 2017

Friday, August 25, 2017

WEEKLY MARKET REPORT

Week Ending 25th August, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S08/17

This Week

M08/17

Last Sale

S07/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2274

2282n

2282

-8

1588n

+686

18

2169

2168

2201

-32

1553

+616

19

1862

1862

1924

-62

1496

+366

20

1663

1652

1724

-61

1478

+185

21

1640n

1611

1668

-28

1471

+169

22

-

1532

1602n

-70 (M)

1450 (M)

+82 (M)

26

1149n

1144n

1180

-31

1139n

+10

28

883n

888

899

-16

777

+106

30

658n

660

682

-24

677

-19

MC

1102

1093n

1110

-8

1053

+49

RAM SALES OFF TO A FLYER!

The wool market’s “day in the sun” was just that!! The record prices in some categories only lasted a day as the market made a hasty retreat in all sectors this week despite only the 2 Eastern Seaboard centres operating with 37,500 bales on offer. The market was cheaper from the outset although the negative tone had somewhat dissipated in the final session as 17.5 and finer actually regained some of the previous day’s losses. The AWEX EMI gave back 42 cents from last sale’s 64 cent climb to 1572(the largest weekly fall since April). The fall in US$ terms was similar (40 cents to 1240) as the A$ spent most of the week either side of 79 cents. The only microns to escape unscathed were < 17.0 micron, spinners’ style with excellent L/S readings as 17.5 to 18.5 and 21s came back 20 to 35 cents while 19/20 and 22 > fell by 60 to 80 cents with lots carrying heavy col/cott and high VM levels were discounted up to 100 cents. Growers balked at this sudden price drop to pass-in over 16% of fleece wool.

Skirtings followed a similar pattern to the fleece room as an opening day’s fall was negated by a solid closing day. By the last lot sold better style types finer than 19 micron and < 3% VM were solid to 20 cents cheaper whereas high VM types fell by 50 cents. Crossbreds also couldn’t escape the carnage as finer than 26 micron fell by 30 cents while 28s and broader looked 15/25 cents back from last sale. The carding sector was the least affected of any as losses were minimal. All operators looked to be back in the market as LKS fell 10 cents in Sydney and burrier types in Melbourne lost 30 to 50 cents.

Buyers clawed back a little of the price gains of the opening 2 sales as the heat came out of the market. The only shining light was the superior super-fine types that held their ground as buyers may have been focussing on next week’s opening designated Super-fine sale of the season in Sydney.  Next week has all 3 centres back on line with 44,000 bales on offer.

The National Sheep Show and Ram Sale was held in Dubbo this week with a ram from Nerstane Merino Stud at Woolbrook, via Walcha, crowned Supreme Ram reversing the result from Bendigo in July when it ran 2nd to a ram from Eilan Donan stud in Victoria.  Prices didn’t quite follow the judges’ scorecard as the Nerstane ram made $40,000 with a 1st class ticket to Uruguay and a syndicate paid $52,500 for the Eilan Donan sheep.  Other notable sales were Roseville Park, top of $25,000 to average $9,555. Langdene from Dunedoo had 2ndtop price of $50,000 to average $17,400 and Alfoxton from Armidale averaged $11,200 and topped at $30,000. The sale average $10,400 which was about $4,000 higher than last year, hopefully a sign of things to come for on-property sales??

Ag Concepts Fwd Prices at 25 August 2017

Micron

Date

Low

High

21

27-Sep-17

1580

1580

21

25-Oct-17

1550

1555

21

11-Sep-19

1325

1325

 Main Buyers (This Week)

1

Fox & Lillie 

5652

2

Aust Merino Exp.

5374

3

Techwool

3757

4

Tianyu

3444

5

Seatech Ind.

2962

6

Lempriere Aust.

2340

7

Kathaytex Aust.

2169

8

New England Wool

1679

9

G Schneider

1679

Eastern Market Indicators (AUD cents/kg clean)

1572 cents ê 42 cents compared with 18/08//2017

Northern Market Indicators (AUD cents/kg clean)

1650 cents ê 29 cents compared with 18/08/2017

AUD/USD Currency Exchange

0.7891 ê 0.0045  compared with 18/08/2017

18 August 2017

Friday, August 18, 2017

WEEKLY MARKET REPORT

Week Ending 18th August, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S07/17

This Week

M07/17

Last Sale

S06/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2282

2295n

2227

+55

1583

+699

18

2201

2179

2153

+48

1541

+660

19

1924

1930

1853

+71

1484

+440

20

1724

1726

1648

+76

1461

+263

21

1668

1663

1576

+92

1455n

+213

22

1603n

1602

1519n

+84

1440n

+163

26

1180

1154n

1119

+61

1136n

+44

28

899

895n

817

+82

753n

+146

30

682

666n

608

+74

663n

+19

MC

1110

1126n

1099n

+11

1046

+64

RED HOT MARKET – RECORDS BROKEN!!

The experts were spot on with their predicted strong market as last sale’s rising prices were just a precursor to what was to unfold this week. The market roared into action on the opening day as the EMI had its largest daily gain (46 cents) for over 2 years. The 2nd day saw more rises, somewhat subdued when compared to the previous day but still double digit lifts. By week’s end the EMI had forged ahead by 64 cents to break through the 1600 cent barrier (1614) - a new record since reports began being published dating back to the mid/late 1970s. The rise was just as impressive in US$ terms, up by 60 cents to 1281, this on the back of a wildly fluctuating A$ (78.15 to 79.60 cents). All types across all microns were caught up in the buying frenzy. 18s and finer posted 45 to 55 cent jumps with some of the spinners and best top making style lots < 18.5 up to 150 cents to the good. 18.5 to 23s added 70 to 95 cents as 22 and 23 micron are now at all time record levels (1603 and 1565) with 21s just 14 cents shy of their May 1988 record of 1682. Of the 24,300 bales of fleece offered nationally 99.1% were sold just 0.9% (220 bales) were passed-in.

Skirtings were also caught up in the “panic buying” patterns with meteoric gains to say the least. Most types and descriptions across all microns and VM levels (bar very heavy cott/colour) added 80 to 140 cents with a clearance rate of 98.1%. Crossbreds also benefitted from the aggressive buying patterns in the merino sector. 50 to 85 cent gains were the order of the day as 28 to 30 micron now adding 125 cents to their quotes in 2 weeks.  It was only back in June that most of the talk was of this sector being very sluggish till at least Christmas - a great turn around!! Cardings looked to be left out of the upward lift in prices as most types posted modest gains of up to 10/15 cents.

Another great week to be selling wool as several records were broken and demand definitely outstripped supply. Quite a few large forward orders had to be filled from some of the bigger Chinese mills and it looked as though no-one was arguing over price as bidding was, at times, frantic with price ideas determined only when the hammer fell!! Several mills were looking to get set for delivery months 2 to 3 months in advance, unlike the past few years where buying was “hand to mouth” - buy, ship and process - as quickly as possible now to forward buying. This old (but new) tactic could prove to be an astute and opportune change of direction as the swing in FRX over the past 6 weeks has gone against all expert forecasts.

Don’t forget the National Ram show and sales here in Dubbo next week, Tuesday to Thursday. The installation of our new core machine is under way and hoping to test wool by late next week. Next week has just the 2 east coast centres selling 36,000 bales as market direction is anyone’s guess!!

Ag Concepts Fwd Prices at 18 August 2017

Micron

Date

Low

High

21

20-Sep-17

1555

1565

21

15-Nov-17

1485

1485

21

14-Feb-18

1510

1510

Main Buyers (This Week)

1

Fox & Lillie 

5652

2

Techwool

5374

3

Seatech Ind.

3757

4

Aust Merino Exp.

3444

5

Lempriere Aust.

2962

6

Kathaytex Aust.

2340

7

PJ Morris

2169

8

Modiano

1679

9

Tianyu

1679

 

Eastern Market Indicators (AUD cents/kg clean)

1614 cents é 64 cents compared with 11/08//2017

Northern Market Indicators (AUD cents/kg clean)

1679 cents é 65 cents compared with 11/08/2017

AUD/USD Currency Exchange

0.7936 é 0.0059  compared with 11/08/2017

11 August 2017

Friday, August 11, 2017

WEEKLY MARKET REPORT

Week Ending 11th August, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S06/17

This Week

M06/17

Last Sale

S02/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2227

2216n

2196

+31

1571

+656

18

2153

2103n

2108

+45

1533

+620

19

1853

1860n

1824

+29

1492

+361

20

1648

1654n

1607

+41

1471

+177

21

1576

1580n

1530

+46

1462

+114

22

1519n

1523n

1477n

+42

1446

+73

26

1119

1126n

1108

+11

1123n

-4

28

817

826n

766

+51

738

+79

30

608

614n

560

+48

652 (M)

-38 (M)

MC

1099n

1130n

1139n

-40

1041n

+58

OFF TO A FLYER!

Wool sales recommenced this week after the annual 3 week winter recess. The large anticipated national offering of 54,000 bales that made the Sydney sale to be held over 3 days (4 years to the week since that has happened) and the climbing FRX to, at one point, a 2 year high over 80 cents had all participants nervous as to where the market might finish by the end of the sale. Signals late last week that the market could be okay were emerging as futures traded up to 20 cents higher than the closing market and the A$ was retreating from its highs of last week. The market opened on a cautious note as exporters looked to see where levels would be set. With buying strategies set the market gained momentum as the sale progressed with all 3 centres posting double digit gains on Wed/Thurs. The AWEX EMI climbed 28 cents to 1550, just 1 cent shy of the level set in late March. In US$ terms the rise was an impressive 48 cents to 1221, this due to the stronger A$. No micron was left out of the rising market as 25 to 55 cent gains were the order of the day bar 18.5 (just a 15 cent lift) but stylish lot finer than this with > 35nkt readings looked 70 to 120 cents higher as a few Chinese orders competed with Italian spinners and weavers. Growers were more than happy with the lift in prices as the clearance rate for fleece wool on the eastern seaboard was 99%.

Skirtings also benefitted from the dearer market. The finer low VM types (< 5%) came under most pressure adding 20 to 40 cents to their quotes with some superior style lots 50 to 100 cents to the good with all other types tending sellers’ favour. The carding sector completely bucked the rising trend of all other sectors to continue its cheaper inclination before the recess. All types in this sector took a hit - LKS back 60 cents while CRS/STN looked 30 to 40 cents cheaper with one of the main carding buyers taking a “wait and see” approach this week as sales in this sector have become extremely hard to book up making the short term outlook a tough one. Good news for the XB sector as renewed interest led to some handy price increases, this despite the article in last week’s “The Land” forecasting more subdued demand through till Christmas. Finer types < 26 micron and 32s added 5 to 10 cents while probably the most pleasing aspect of the rising market was 28 to 30 micron averaging a 50 cent jump.

A great (and to a degree) a somewhat surprisingly good start to sales. After a typically tentative start orders came flooding in from overseas users at full market rates to have an immediate effect on the market as any outstanding orders were filled and buyers began in earnest to secure quantity for the new business that had been written. Also helping the market is the improved quality of the offering, more FNF fleece types with higher strength and lower dust content than in the autumn. Next sale has the national selection back to 38,000 - 14,000 bales less than this week with most experts talking a very strong market.

Ag Concepts Fwd Prices at 11 August 2017

Micron

Date

Low

High

21

6-Sep-17

1510

1510

21

18-Oct-17

1505

1505

21

13-Dec-17

1450

1450

Main Buyers (This Week)

1

Techwool

5848

2

Fox & Lillie  

5763

3

Aust Merino Exp.

4737

4

Lempriere Aust.

4586

5

PJ Morris

4333

6

Modiano

4008

7

Tianyu

3011

8

MichellAust.

2620

9

Kathaytex Aust.

1702

 

Eastern Market Indicators (AUD cents/kg clean)

1550 cents é 28 cents compared with 14/07//2017

Northern Market Indicators (AUD cents/kg clean)

1614 cents é 26 cents compared with 14/07/2017

AUD/USD Currency Exchange

0.7877 é 0.0170  compared with 14/07/2017

14 July 2017

Friday, July 14, 2017

WEEKLY MARKET REPORT

Week Ending 14th July, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S02/17

This Week

M02/17

Last Sale

S01/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2196

2192

2192

+4

1577

+619

18

2108

2072

2118

-10

1543

+565

19

1824

1854

1845

-21

1501

+323

20

1607

1610

1618

-11

1479

+128

21

1530

1538

1529

+1

1469

+61

22

1477n

1474

1462n

+15

1456n

+21

26

1108

1110n

1101n

+7

1103n

+5

28

766

778

759

+7

755

+11

30

560

568

549

+11

636

-76

MC

1139n

1153n

1164

-25

1084

+55

A SOLID ENDING – ONLY JUST!

The final sale before the annual 3 week winter recess saw 46,000 bales up for sale. The AWEX EMI struggled to move as markets on the Eastern Seaboard were mixed, back 5 cents in Sydney and unchanged in Melbourne resulting in the EMI giving up just 2 cents to 1522. To make matters more confusing, Fremantle’s indicator rose by 9 cents to 1570. The upward shift in the FRX by 1 cent to 77.07 had the market gaining 15 cents in $US terms to 1173 - this rise in the A$ failing to dampen demand overall. For the 2nd sale running the predicted solid to dearer market didn’t really eventuate except for sub 17.5 and 22 micron that rose by 5 to 15 cents. 18 to 20s fell 10 to 25 cents. Premiums were hard to come by unless lots had exactly the “right specs” but some passed-in lots from a fortnight ago sold up to 80 cents higher and a few “non-mulesed” types came under renewed buyer pressure.

Skirtings finished the sale on a stronger note as buyers scrambled to secure what quantity was on offer. Buyer emphasis concentrated on the < 18 micron types with < 4%VM, these lifting by 15 to 25 cents (the odd lot up by 50 cents) as most other types remained rock solid bar some carbonising lots with heavy colour/cott. Two lots from Dunedoo and 3 lots of BKN from Orange made 1000 to 1148 cents - great money!! In fact, one lot of WNR BKN made more on a clean basis than one of its fleece lines did, 1986 to 1972. Cardings looked to have run their race for the moment. Last sale’s losses were compounded even more as most types in this sector were cheaper. LKS looked to be the hardest hit-30 to 50 cents back- while STN/CRT fell by 10 cents. Crossbreds finished the sale on a rising note mirroring last sale’s gains, broader types up by 5/10 cents while < 25 micron quoted 20 to 30 cents to the good.

The last 2 sales clearly demonstrate the ability of the market to hold its levels (or thereabouts) in the face of adverse factors such as larger volumes and RFX movements as subtle shifts either way for various microns has occurred.  Buyers were keen to purchase wool but still very choosy with what they bought and price sensitive. New demand was mainly for merino fleece < 19 micron, skirtings and crossbreds as some broader fleece types and cardings took a hit from a lack of demand. The largest local exporter and biggest Chinese indent buyer again led the way as other buyers fell into line to pick away at the offering. When Fremantle joined in another large local exporter exerted more pressure on the better fleece types to swamp all rival orders as other buyers had to up the ante to complete outstanding orders. Topmakers were also more active on the higher VM and “off” types in the fleece room as well as skirtings to pretty much keep machinery running while the supply of wool globally comes to a standstill for the next 3 weeks. Most participants, more-so buyers, head off on a 3 week recess with wool sales to recommence 9th August. We should have a catalogue of 1200 bales to offer. 

Ag Concepts Fwd Prices at 14 July 2017

Micron

Date

Low

High

21

16-Aug-17

1525

1525

21

30-Aug-18

1505

1505

Main Buyers (This Week) 

1

Fox & Lillie

4758

2

Techwool

4443

3

Tianyu

4413

4

Aust Merino Exp.

4394

5

Lempriere Aust.

2831

6

PJ Morris

2824

7

Modiano

2689

8

Seatech Ind.

2542

9

Kathaytex Aust.

1093

 

Eastern Market Indicators (AUD cents/kg clean)

1522 cents ê 2 cents compared with 7/07//2017

Northern Market Indicators (AUD cents/kg clean)

1588 cents ê 5 cents compared with 7/07/2017

AUD/USD Currency Exchange

0.7707 é 0.0107  compared with 7/07/2017

7 July 2017

Friday, July 07, 2017

WEEKLY MARKET REPORT

Week Ending 7th July, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S01/17

This Week

M01/17

Last Sale

S52/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2192

2160

2200n

-8

1579

+613

18

2118

2085

2130

-12

1554

+564

19

1845

1864

1859

-14

1516

+329

20

1618

1624

1634

-16

1503

+115

21

1529

1541

1543

-14

1492

+37

22

1462n

1468

1476 (M)

-8 (M)

1469n

-7

26

1101n

1103n

1103

-2

1072n

+29

28

759

765n

756

+3

755

+4

30

549

558n

558

-9

650

-101

MC

1164

1163n

1184n

-20

1088

+76

MARKET ESCAPES ALMOST UNSCATHED!

The opening sale of the season saw the largest national catalogue (51,000 bales) on offer since the Easter Show sale in April. Forecasts of a solid market seemed to fade as the week progressed. The favourable FRX and a trickle of business that was written late last week wasn’t enough to have the market hold onto current levels. A general softening of prices had all merino indicators 5 to 15 cents lower than last sale. As has been the pattern of buying for a long time, good types with the right “specs” came under spirited competition as the burrier lots (4% VM) looked to be under pressure from the increase in volume of these types and were discounted accordingly. The AWEX EMI gave up just 1 cent to 1524 and fell by 9 cents to 1158 in US$ terms. These levels are actually above last sale’s levels (1507 and 1154), this due to the readjustment of the 3 regional indicators and the EMI which is done periodically by AWEX.

For the 2nd sale running skirtings defied their fleece counterparts and mostly moved ahead. The better style, sub 18 micron types with < 6% VM lifted by 20 cents while all others were rock solid bar lots with heavy col/cott still attracting large discounts with some 10/15% VM types irregular. Cardings started the sale on par with the previous session but a change of sentiment on the final day saw all types in this sector fall by 20 to 30 cents. Crossbreds started the season with mixed results as finer types < 28 micron finished either side of last sale’s levels as broader microns (> 28) lost 5 to 10 cents.

This was a somewhat disappointing result to the opening sale of the new season. After a bit of business was written late last week and the currency falling to, at one point, below 76 cents from a high of over 77.55 hopes that the big offering could be absorbed evaporated early this week even though, on reflection, the fall could have been a lot larger than we had. The market held up in part due to one of China’s largest indent buyers re-entering the market after a quieter past 4 weeks seemingly not deterred by the increased volume. Other buyers in the fleece room soon sensed no slow down in their buying strategy so these rivals had to pick up the slack to acquire inventory to fill sold positions or provide future trading fodder.  Most buyers initially stuck to a buy-in price level rather than letting volume dictate purchasing patterns. New business was sporadic early in the sale but as prices failed to fall away less than most expected, demand increased and looks set to filter into next sale - the final before the 3 week winter recess.     

In news from AWTA, testing figures now reveal that Dubbo is now the 5th largest testing site in the country testing 104,000 bales last season. Fremantle was the biggest coring centre followed by Geelong, Adelaide and Melbourne with Goulburn behind us. Next week has 47,000 bales on offer; we sell late on Thursday with 1688 bales catalogued.

Ag Concepts Fwd Prices at 7 July 2017

Micron

Date

Low

High

21

23-Aug-17

1500

1505

21

12-Sep-18

1350

1350

Main Buyers (This Week)

1

Techwool

7690

2

Fox & Lillie

4078

3

Seatech Ind.

3902

4

Aust Merino Exp.

3562

5

Tianyu

3381

6

Lempriere Aust.

3337

7

Michell

2838

8

PJ Morris

2782

9

Modiano

2429

  

Eastern Market Indicators (AUD cents/kg clean)

1524 cents ê 1 cents compared with 30/06//2017

Northern Market Indicators (AUD cents/kg clean)

1593 cents ê 6 cents compared with 30/06/2017

AUD/USD Currency Exchange

0.7600 ê 0.0055  compared with 30/06/2017

30 June 2017

Friday, June 30, 2017

WEEKLY MARKET REPORT

Week Ending 30th June, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S52/16

This Week

M52/16

Last Sale

S51/16

Sydney

Change

Last Year

Sydney(Wk53)

Sydney Yearly

Change

17

2200n

2173n

2232

-32

1548

+652

18

2130

2087

2165

-35

1516

+614

19

1859

1864

1892

-33

1481

+368

20

1634

1618

1672

-38

1462

+172

21

1543

1547

1583

-40

1449

+94

22

-

1476

1516n (M)

-40 (M)

1431n (M)

+45 (M)

26

1103

1096n

1109n

-6

1104n (M)

-8 (M)

28

756

765

769

-13

779n

-23

30

558

560n

548

+10

678n

-120

MC

1184n

1170n

1184n

0

1084

+100 

BIG VOLUME – NO PROBLEM … HOPEFULLY!!

After regaining some of the lost ground in May, the market ran out of steam following 5 days of rises in the past 2 weeks that saw the AWEX EMI go from 1467 to 1533. Talk of the larger national catalogue in the opening 2 weeks of July of over 90,000 bales certainly gave the buyers a chance (excuse??) to relax their buying patterns. Big falls on the opening day were somewhat negated by a more positive tone in the final session. By week’s end the EMI lost 26 cents to 1507. The fall in $US terms was minute, just 4 cents to 1154 as the A$ strengthened against the $US by 1 cent (1.38%). Losses ranged from 25 to 45 cents across all the merino microns and, in some cases, 100 cents for < 18.5 off types and burrier lots. Once again, if lots had the right specs, they were in high demand as wools from Goolma, Cunnamulla and Parkes made from 50 to 130 cents higher than their indicators.

Room 2 types (skirtings, cardings and crossbreds) looked to escape the carnage of the merino fleece types.  The odd fine lot of superior type PCS/BLS were extreme with < 3%VM fully firm and burrier lots actually 10 to 20 cents better. Cardings remained unchanged - LKS were in sellers’ favour with STN/CRS in buyers’ favour. Crossbreds looked to split into 2 markets as finer than 28s were 5 to 15 cents off the pace with 30 micron and broader 10 to 15 cents higher.

As mentioned earlier, upcoming volumes rather than demand drove the market’s direction especially on the opening day. Overseas users took advantage of the new level of prices set in this session as this renewed demand went straight into the sale rooms on Thursday to completely stop the sliding market as most buyers quoted 19 micron and broader 10 to 15 cents dearer. The predicted outcome for next week (despite the large volume) is solid but very sensitive to any currency shift.

The final sale of the season was disappointing but it ended a season of highlights. The EMI set a record for the highest level for an end to a season (1507), 210 cents (16%) better than 12 months ago. The average for the EMI was 1401 for the year, up 147 cents (12%) while in $US terms it was a 20% jump to 1154 cents. This was the 4thyear in a row that the average of the EMI increased and the eighth increase over the past decade. There were 80,600 bales more offered this season than last season which saw 56,000 bales sold to the trade higher than the previous year. Of the 1,721,000 sold, Techwool Trading secured 255,573 bales (15%) with Fox & Lillie in 2nd spot (174,000). The next 5 buyers bought between 133,000 to 110,000 bales as the top 10 buyers grabbed 72.8% or 1,253,000 bales. 

Ag Concepts Fwd Prices at 30 June 2017

Micron

Date

Low

High

21

16-Aug-17

1490

1490

21

20-Sep-17

1430

1430

Main Buyers (This Week) 

1

Techwool

3975

2

Aust Merino Exp.

3718

3

Fox & Lillie

3663

4

Lempriere Aust.

2914

5

Chinatex

2083

6

Modiano

1775

7

Michell

1606

8

PJ Morris

1573

9

Tianyu

1562

 

Eastern Market Indicators (AUD cents/kg clean)

1507 cents ê 26 cents compared with 23/06//2017

Northern Market Indicators (AUD cents/kg clean)

1578 cents ê 21 cents compared with 23/06/2017

AUD/USD Currency Exchange

0.7655 é 0.0101  compared with 23/06/2017

23 June 2017

Friday, June 23, 2017

WEEKLY MARKET REPORT

Week Ending 23rd June, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S51/16

This Week

M51/16

Last Sale

S50/16

Sydney

Change

Last Year

Sydney(Wk52)

Sydney Yearly

Change

17

2232

2212n

2197n

+35

1532

+700

18

2165

2149

2123

+42

1505

+660

19

1892

1922

1870

+22

1471

+419

20

1672

1669

1638

+34

1435

+237

21

1583

1580

1554

+29

1423

+160

22

1518n

1516

1485n

+33

1402n

+116

26

1109n

1129n

1109n

0

1091n (M)

+38

28

769

769n

767n

+2

784n

-15

30

548

543n

533n (M)

+10 (M)

686n

-138

MC

1184n

1188n

1181

+3

1079

+105

HAS THE MARKET PEAKED??

Last week’s recovery continued on this sale as renewed demand, lack of volume and a stable A$ all week ensured buyers were on the front foot with their purchasing patterns. The opening session saw the largest increases (while they looked a bit more selective on the final day) but still pushed the market higher. By week’s end the AWEX EMI added another 27 cents to its value, now 1533. The rise in US$ terms was about half, 12 cents to 1158 this due to the FRX coming back to the mid 75 cent level from last week’s highs of over 76. Once again, the rises were across the board and extended to the “off” types with colour, cott and VM levels that had been somewhat out of favour in previous sales. 20 to 45 cent gains covered 17 to 22 micron with 16.5 and finer just in sellers’ favour as the 17 MPG is now 10 cents higher than 16.5s. Once again, sub 19 micron types with the right specs were extreme as a lot from Goolma and 2 lots from Dunedoo made 100 to 200 cents over their indicators.

Skirtings kept pace with their fleece counterparts this sale as the better style low VM ( < 3%) types posted 40/50 cent rises while the 5% VM and higher 20 cents to the good. Cardings made subtle gains in Sydney, all types in sellers’ favour to have the indicator up by 3 cents to 1184. Melbourne played catch-up in this sector, their MCI up by 21 cents to 1188. Crossbreds also benefitted from increased demand as all types added up to 10 cents.

The size of the Eastern Seaboard only offering certainly played into growers’ hands this week. The smallest merino fleece selection - 11,344 bales - for 8 years with the smallest skirting and carding offering of the season helped the market to clear 95%.The FRX went in favour of overseas buyers by 0.8% but, despite this helping the market, exporters reported a widespread lack of new business being written and virtually no stocktaking at these new levels, as buyers pushing to finish outstanding orders the main driver in the upward trend.

Indent buyers led the initial charge only to be non existent on the final day in Melbourne as fleece prices fell 15/20 cents. Sydney, however, was far stronger to add 15 to 20 cents to their previous levels to bring both centres to closer alignment with each other as all fleece indicators in both centres are within 15 cents (bar 17s and 19 micron, 20 and 30 cents apart). Next week sees all 3 centres selling with 37,000 bales on offer and some talk of purchasing hesitancy as the new season volumes rise sharply when compared to recent sales - the market certain to move one way or the other. 

Ag Concepts Fwd Prices at 23 June 2017

6icron

Date

Low

High

21

9-Aug-17

1500

1500

21

27-Sep-17

1438

1450

21

13-Dec-17

1425

1425

Main Buyers (This Week)

1

Techwool

2402

2

Fox & Lillie

2329

3

Lempriere Aust.

2293

4

Aust Merino Exp.

2125

5

Tianyu

1432

6

Modiano

1187

7

Natsun Aust.

841

8

United Wool Co.

730

9

G Schneider Aust.

381

 

Eastern Market Indicators (AUD cents/kg clean)

1533 cents é 27 cents compared with 16/06//2017

Northern Market Indicators (AUD cents/kg clean)

1599 cents é 24 cents compared with 16/06/2017

AUD/USD Currency Exchange

0.7554 ê 0.0056  compared with 16/06/2017