Weekly Market Reports


1 May 2015

admin Macwool - Friday, May 01, 2015

WEEKLY MARKET REPORT

Week Ending 1st May, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S44/14

This Week

M44/14

Last Sale

S43/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1404

1392

1382

+22

1297

+107

18

1372

1369

1356

+16

1259

+113

19

1313

1319

1291

+22

1216

+97

20

1269

1265

1254

+15

1199

+70

21

1248

1252

1227

+21

1191

+57

22

1202

1196n

1192n

+10

1166n

+36

26

971n

959n

951n

+20

758n

+213

28

858

847

860

-2

670

+188

30

799

797

809

-10

631

+168

MC

994

1008

983

+11

783

+209

 

 MARKET DEFIES DOLLAR AND US PROBLEMS

For the third sale in a row we saw the market on (what some might describe) a “bull-run” as the three centres recorded good rises ranging from 16 to 22 cents. The EMI rose 19 cents to 1172 (a 3 year peak) as the northern indicator is now at 1199. In US terms the rises have been more pronounced. This week a 43 cent jump to 937, due to the falling US $ and most other global currencies strengthening against it.

It was a somewhat strange week as most pundits thought the market would settle with no real movement either way and, in fact, the outlook did worsen as the sudden shift in exchange rates gave the perfect opportunity for the Chinese to force the market down. Everyone was caught on the hop when news from the US on Monday night painted a not so pretty picture. Economic growth had virtually stalled in the 1st quarter of the year due to a number of reasons. The record breaking blizzard conditions on the eastern seaboard for the 3rd consecutive winter had hampered consumer spending with the bulk of the population staying indoors – where are all the tree hugging, climate change, global warmers now!!! The ports dispute on the west coast that delayed exports leaving LA, San Francisco and Seattle and the big US oil companies slow-down of investments due to oil prices remaining low all hampered economic growth. Despite 200,000 jobs being created each month, this has not helped as a majority of these are part-time positions but the unemployment rate is down to 5%. Despite the A$ 2.6 cent jump to above 80 cents (the highest level since January), the market made steady gains early in the sale to have a final day surge to see all fleece indicators climb 15 to 30 cents, bar 22s - up by 10 cents. Again nothing was neglected and good spec types commanded good premiums with one 18.5 lot from Goolma 100 cents better than the indicator.

Skirtings had a great sale as a cautious start to the week (+ 10 cents) exploded to life on the final day as all descriptions and microns leapt by 40 to 50 cents with most emphasis on <3% VM. Crossbreds were the only sector to suffer from the higher A$, the 28 and 32s in buyers’ favour and 30 micron 10 cents cheaper with the finer types <26 micron posting gains of up to 20 cents. Cardings again rewrote the record books as the MCI broke through the 1000 cent mark for the first time in Melbourne, 1008, with Sydney set to join it soon but, for the moment, 994 cents. All types increased in value by 10 to 20 cents. In local A$ terms the MCIs have been in record territory since January but still 100 cents lower in US terms than mid 2011 - the MCI was 830 and the A$ 105 US cents. One surprising aspect is the large volume of withdrawn wool, 900 bales in Sydney, 8% of the selection. Next week will see 43,000 bales on offer. Hard to see when the brakes will be put on the rising market.

 Ag Concepts Fwd Prices at 1 May 

Micron

Date

Low

High

21

24-Jun-15

1190

1210

19

5-Aug-15

1270

1270

21

26-Aug-15

1174

1180

21

11-Nov-15

1175

1175

21

9-Dec-15

1175

1175

 

Main Buyers (This Week)

 

Chinatex

5126

2

Techwool

4933

3

Fox and Lillie

4000

4

Lempriere

3324

5

Australian Merino

2939

6

P J Morris

2885

7

Kathaytex Aust.

1723

8

Modiano (Aust)

1620

9

Tianyu

1356

 

Eastern Market Indicators (AUD cents/kg clean)

1172 cents é 19 cents compared with 24/04/2015

Northern Market Indicators (AUD cents/kg clean)

1199 cents é 22 cents compared with 24/04/2015

AUD/USD Currency Exchange

0.7992 é 0.0242 compared with 24/04/2015

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