Weekly Market Reports


1 June 2018

admin Macwool - 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


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