Weekly Market Reports


10 February 2017

admin Macwool - Friday, February 10, 2017

WEEKLY MARKET REPORT

Week Ending 10th February, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S32/16

This Week

M32/16

Last Sale

S31/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2080

2040

2038

+42

1553

+527

18

2002

1937

1971

+31

1512

+490

19

1795

1771

1752

+43

1412

+383

20

1562

1556

1549

+13

1373

+189

21

1449

1439

1438

+11

1368

+81

22

1398n

1375n

1377n

+21

1359

+39

26

909

915

903

+6

962

-53

28

667

666

655

+12

826

-159

30

531n

528

544

-13

746

-215

MC

1162

1162

1158n

+4

1106

+56

MARKET KEEPS ON KEEPING ON!

Last sale’s consolidation was followed up by an even more pronounced rise in the benchmark AWEX EMI posting a 15 cent rise to 1437; just 2 cents shy of the record set in the 2nd sale of the year. In $US terms the gain was 9 cents to 1096, outdoing their record by 11 cents set 3 weeks ago. The only type to finish in the red was 30/32 microns - back by 5 to 15 cents.  Buyers looked keen to secure wool from the outset as the final designated super-fine sale of the season saw a large volume of superior types offered in Sydney. Consistent rises over both days (led by European and Italian indent  orders) had 19s and finer 30 to 50 cents higher with some “crackers” 100 to 150 better than previous sales and ultra-fine microns <16 a massive 200 to 500 cents above the market. Medium microns also came under renewed buyer pressure as 19.5 to 23s added 10 to 25 cents to their values. Growers warmed to these new price levels, clearing over 98%.

Skirtings followed the lead of the fleece room: the sub 18 micron, <5% VM better types keenly sought after as rises of 40 to 60 cents were common with some finer lots <17 micron up to 100 cents higher with the burrier, broader types 10 to 25 cents to the good. Again the sell rate was over 98%. Cardings also had a good sale as all types in this sector were solid to 20 cents higher as the records set 3 weeks ago will come under threat next week. At long last some XB types finally had a positive sale, 24 to 28 micron up 5 to 20 cents with the broader microns, as mentioned, cheaper along with carbonising types, almost unsaleable at the processing end thus almost unwanted in the sale room.

Again a good week for merino growers as 19 and finer continue to improve to acceptable levels, finer than 18 now all above 2000 cents clean but still, as mentioned last week, 50 to 300 cents from the winter peaks of 2011. The gap from 21 to 18 micron now 550 cents, about where it should be, while 18 to 16.5 just an 85 cent difference. The “back legs out” debate touched on in last report is an interesting issue. We had an excellent example of hind legs out of fleece lines this week from Nyngan. Fleece averaged 4.2% VM, 970c/kg while the back legs had 12% VM to sell for 730 cents. We think with the back legs in the fleece lines VM rises up to 7/8% and prices back to low 800 cent range but it’s a case by case situation as to make a back leg line or not. Next week’s catalogue climbs to 47,500 bales. Current sentiment suggests there is quite a bit of covering and forward buying still outstanding to see the market solid at the very least.

Ag Concepts Fwd Prices at 10 February 2017

Micron

Date

Low

High

19

1-Mar-17

1730

1730

19

12-Apr-17

1710

1710

19

27-Sep-17

1640

1640

 

Main Buyers (This Week) 

 

1

Techwool

6669

2

Fox & Lillie

4661

3

Tianyu Wool

3209

4

Aust Merino Exp.

3035

5

PJ Morris

2914

6

Modiano

2680

7

Michell Aust.

2123

8

Kathaytex Aust.

1854

9

Chinatex

1836

  

Eastern Market Indicators (AUD cents/kg clean)

1437 cents é 15 cents compared with 03/02//2017

Northern Market Indicators (AUD cents/kg clean)

1518 cents é 19 cents compared with 03/02/2017

AUD/USD Currency Exchange

0.7625 ê 0.0019  compared with 03/02/2017

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