Weekly Market Reports


1 March 2019

admin Macwool - Friday, March 01, 2019

WEEKLY MARKET REPORT 

Week Ending 1st March, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S35/18

This Week

M35/18

Last Sale

S34/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2612

2524

2620

-8

2826

-214

18

2525

2468

2533

-8

2407

+118

19

2396

2374

2422

-26

2136

+260

20

2357

2339

2390

-33

2001

+3563

21

2338n

2333

2368

-30

1928n

+410

26

1436n

-

1414n

+22

1152n

+284

28

1151n

1133

1153n

-2

805

+346

30

-

971

983 (M)

-12 (M)

576 (M)

+395 (M)

MC

1210

1176n

1215

-5

1339n

-129

THINGS BACK TO NORMAL??

An 8 sale run of rises for the EMI came to a halt this week as the market drifted by 11 cents to 2016, the best start to the year since 2006. With Chinese mills not operating in South Africa and their decision to hold wool sales this week and our local volume lifting by 8,500 bales in the space of 4 days due to last sale’s big gains many theories were being touted as to what might happen. Could the market lose 10/15% in SA and our market following suit here with the European orders heading across the Indian Ocean to what may have been a substantially cheaper market or stay here to support our market?? When will the Chinese resume buying in SA? Growers and brokers were understandably worried about this week’s outcome on both sides of the Indian Ocean.

The market held up well as a cheaper opening trend led to a stronger finish to see 18.5s and finer up to 10 cents cheaper while broader microns gave back 25 to 35 cents. It was interesting to note Fremantle had both days of increases. Merino skirtings had a solid sale to finish in sellers’ favour. Crossbreds had a mixed week as the finer and very broad types gained 20 cents while 28/30micron lost 10 cents. Cardings gave up 10 to 15 cents for most types in this sector. The market in SA was nowhere near as bad as predicted, just a 0.6% fall and, worthy of note, the big top-maker from China (Tianyu) bought 1700 bales this week, headed to who knows where!!

Considering the events over the past few weeks global wool markets looked to have dodged a bullet. The suspension of sales in SA and the embargo from Chinese Customs on their wool imports could have led to a massive fall in their market with the potential repercussions felt here as buyers chased the potentially cheaper wool in SA. This didn’t eventuate as the good selection of finer types were in good demand from Europe.

In no real surprise to anyone the release of testing figures for February from AWTA was down 5.5% from the previous season’s weight of wool tested. This has the year-on-year decline at 11.2%; auction offerings are at 13.4% lower than last season (174,000 bales) or 4/5 selling weeks. We sell late on Wednesday next week as the national volume drops slightly to 46,000 bales. Market direction is still hard to pick but plenty of business was written on Wednesday night that didn’t really flow through to the sale room on Thursday - hopefully next week.


            Ag Concepts Fwd Prices as at 1 March 2019               

Micron

Date

Low

High

21 17-Apr-19 2280 2280 
21 29-May-19 2250 2250

Main Buyers (This Week)

1

Techwool

9007

2

Seatech Ind.

3980

3

Tianyu Wool

3814

4

Kathaytex

3061

5

Fox & Lillie

2827

6

PJ Morris Wool

2673


Eastern Market Indicators (AUD cents/kg clean)

2016 cents ê 11 cents compared with 22/02/2019


Northern Market Indicators (AUD cents/kg clean)

2063cents ê 11 cents compared with 22/02/2019


AUD/USD Currency Exchange

0.7147 ê 0.0013 compared with 22/02/2019

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