Weekly Market Reports


1 February 2019

admin Macwool - Friday, February 01, 2019

WEEKLY MARKET REPORT 

Week Ending 1st February, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S31/18

This Week

M31/18

Last Sale

S30/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2538

2508

2538

0

2705

-167

18

2437

2443

2432

+5

2330

+107

19

2304

2287

2313

-9

2090

+214

20

2273

2251

2277

-4

1901

+372

21

2249

2224

2245n

+4

1789

+460

22

-

2223n

2213n (M)

+10 (M)

1728 (M)

+495 (M)

26

1343n

1333

1298n

+45

1039n

+304

28

1024n

1031

934n

+90

718

+306

30

839n

848

741 (M)

+107 (M)

542

+297

MC

1165

1123n

1186

-21

1300n

-135

HAPPY CHINESE NEW YEAR … HOPEFULLY!

The wool market plodded along this week with mixed results in all 3 centres as national weekly offerings are now averaging 40,000 bales following on from the 2 big opening sales of the new year. The AWEX EMI pushed ahead by 7 cents to 1934 with most microns moving by single figures either way in Sydney. In US$ terms the EMI added 33 cents to 1405, this due the rising A$ as the sale progressed, up by 1.5 cents (2.2%) for the week. With the volume of drought affected wool increasing each sale only the long, low VM higher yielding types are immune from any major price discount. Buyers are finding it harder to place the burrier, tender, short and sub 60% yielding fleece types and are adjusting prices accordingly as only the best types attract solid premiums.

Skirtings also improved by modest margins - 10 to 20 cents for most types bar the very high VM lots. Again LKS weighed heavily on the carding sector as < 17 micron types were reduced by 30/50 cents with STN giving up 20 to 30 cents. The best performing of all sectors were the XBs. After an excellent opening 2 sales they were in hot demand again as finer than 26 micron added up to 50 cents while 28/30s climbed by 100 cents as some exporters are blending these with fine wools - the reason for the renewed interest as 28 micron is at a 5 year peak.

The 2 fundamentals that remain in place (supply and demand) will dictate above all which way the market goes but we do face some headwinds. The market looks to be coping with the FRX fluctuations as this sale demonstrated although new forward business is hard to come by at current market levels given the quality of wool on offer as processors try to balance the need to keep machinery running and the inability to pass the current price levels to downstream customers. Some overseas manufacturers are looking to other sources to continue processing but the move to blending XBs with merino rather than a shift to blend synthetics is working thus far. The ongoing US/China trade war, the messy Brexit in Europe and the slowing Chinese economy could all play their part at some stage on wool prices. AWTA reports that 12% less wool was tested in January 2019 compared to the same month last year and wool sold year to year is 19% (201,000) lower than last season to date. As we approach Chinese New Year, most pundits forecast good types to hold while off style wools could struggle.

Ag Concepts Fwd Prices as at 1 February 2019

Micron

Date

Low

High

21

17-Apr-19

2190

2190

21 9-Oct-19 2060 2060 

Main Buyers (This Week)

1

Techwool

4599

2

Seatech Ind.

3449

3

Fox & Lillie

3409

4

Aust. Merino

3008

5

Endeavour Wool

2678

6

Kathaytex

2467

Eastern Market Indicators (AUD cents/kg clean)

1934 cents é 7 cents compared with 25/01/2019

Northern Market Indicators (AUD cents/kg clean)

1978 cents é 8 cents compared with 25/01/2019

AUD/USD Currency Exchange

0.7267 é 0.0144 compared with 25/01/2019

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=736511&A=Trackback
Trackbacks
Post has no trackbacks.