Weekly Market Reports


1 December 2017

admin Macwool - Friday, December 01, 2017

WEEKLY MARKET REPORT

Week Ending 1st December, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX   

This Week   

S22/17   

This Week  

M22/17   

Last Sale 

S21/17 

Sydney 

Change 

Last Year 

Sydney 

Sydney Yearly 

Change 

17    

2459  

2467n  

2460  

-1  

1797  

+662  

18    

2270  

2291  

2277  

-7  

1753  

+517  

19    

1999  

2009  

1985  

+14  

1653  

+346  

20    

1773  

1770  

1758  

+15  

1527  

+246  

21    

1649  

1644  

1636  

+13  

1449  

+200  

22    

1569n  

1561  

1553n  

+16  

1411n  

+158  

26    

1035  

1051  

1055  

-20  

962  

+73  

28    

718  

734  

731  

-13  

681  

+37  

30    

534  

536  

559  

-25  

578  

-44  

MC    

1382n  

1389n  

1381n  

+1  

1144n  

+238  

 

MARKET SET FOR A GOOD RUN HOME TO CHRISTMAS!

The market clawed back some of the previous series’ losses as buyers looked to have overcome their finance problems that restricted some of them operating to full capacity over the past fortnight. The benchmark AWEX EMI added 7 cents to its value (1676), 298 cents higher than the same time 12 months ago, an increase of 21%. The gain in US$ terms was the barest minimum, just 1 cent to 1271, as the A$ spent most of the sale just shy of the 76 cent mark. Some degree of urgency came back into the sale rooms this week as buying patterns intensified under renewed interest but bidding was measured as price increases were gradual. This was the final “designated superfine sale” of the year, but this didn’t benefit all microns. 17 to 18s failed to fire to slip by up to 5 cents (volume related) as 16.5 jumped by 35 cents. All other microns from 18.5 to 22 put on an average of 15 cents. Most types met with good competition regardless of VM, colour or other faults as the “right spec” lots were up to 30 cents higher than their indicators.

The skirting buyers also took a much more cautious approach but overall the market remained pretty much unchanged, bar some 17 micron and broader types just in buyers’ favour. The carding market also followed suit as the only movements in this sector were LKS < 17 micron that added 10 cents and washing LMS (< 0.3 VM) quoted as extreme. Once again XBs failed to fire or even hold the previous sales’ levels as all microns (25 to 32s) gave up another 10 to 25 cents.

Most of the show-floor talk still revolved around finances. The recent larger weekly offerings and higher prices had most buyers stretched to the limit but the pressure valve should be alleviated as we march towards the 3 week recess as November shipments are due and L/Cs (letters of credit) are opened allowing buyers to regain full budget limits for purchasing for the final 2 sales of the year. Demand for prompt shipment and the need of most mills to buy wool pre-Christmas to keep production going over the recess and into the new year should ensure, at the very least, a solid market. Competition was more evenly spread this sale as the top 3/4 buyers slowed their purchasing patterns allowing other buyers  to fill the void.

The latest testing figures from AWTA shows November was down 2.3% compared to the same month last year but July to November this year had 5% more bales tested than last season. We sell late on Thursday with 700 bales on offer; this could be the high point of the sale!! Hope everyone gets the much anticipated rain.

Ag Concepts Fwd Prices at 1 December 2017

Micron

Date

Low

High

21

21-Feb-18

1610

1610

21

11-Apr-18

1590

1590

21

27-Jun-18

1550

1550

Main Buyers (this week)

1  

Techwool

6903  

2

Tianyu Wool

3793  

3

Seatech Ind.

3267  

4  

PJ Morris

3009  

5

Lempriere

2834  

6

Modiano

2494  

7  

Michell Aust.

2277  

8

Fox & Lillie

1783  

9

Australian Merino

1673  

Eastern Market Indicators (AUD cents/kg clean)

1676 cents é 7 cents compared with 24/11/2017

Northern Market Indicators (AUD cents/kg clean)

1756 cents ó 0 cents compared with 24/11/2017

AUD/USD Currency Exchange

0.7585 ê 0.0026 compared with 24/11/2017

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