Weekly Market Reports


10 March 2017

admin Macwool - Thursday, March 23, 2017

WEEKLY MARKET REPORT

Week Ending 10th March, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S36/16

This Week

M36/16

Last Sale

S35/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2235

2202

2219

+16

1503n

+732

18

2143

2135

2117

+26

1446

+697

19

1902

1910

1899

+3

1372

+530

20

1638

1619

1628

+10

1333

+305

21

1501

1499

1494

+7

1333

+168

22

1439n

1425

1431n

+8

1315n

+124

26

1003

994n

1004

-1

971n

+32

28

756

753

745

+11

830

-74

30

583

591n

574

+9

703

-120

MC

1231n

1222n

1214

+17

1077

+154

AWI is jumping for joy!

Another big week for the wool market and another record breaking week for the EMI pushing further into unchartered waters. With over 5000 extra bales offered this week demand continued to push indicators higher with the exception of 21 and 22 as increased volumes of these traditional types allow buyers to ease back. Apart from woolgrowers being the winners over the past month or so it is AWI which is also cheering it on. The dollar value of wool sold this week was $73.3m which at 2% wool tax equates to close to $1.5m for the week into their coffers. As you might have read in last weeks Land newspaper, AWI were recently grilled over their spending by govt senate estimates, in particular severance payouts and offices in prime locations. Chairman Wal Merriman suggested it was better than operating out of a “tin shed” in Dubbo. Given he officially opened this tin shed five years ago I can only presume he has some other tin shed in mind! The government is a co-funder of AWI along with the wool grower, and we think it’s a good thing their spending is put under scrutiny. We’ve seen what’s happened in the past when institutions become flush with funds and growers need assurances their money is spent wisely.

Following a similar trend to recent weeks most of the action was sub 19.5 micron and particularly low vm wools. What isn’t reflected in the market reports was the increased discount for high vm, particularly over 4%. It was very noticeable in our catalogue with hardly a line of fleece wool under 3% that buyers would struggle trying to average orders even those at 4%. This apparently was the case as the 4% to 5% lines made the same money as the 7% lines, which was about 20 cents cheaper compared to the previous week. Skirtings and oddments continued to sell well although burr levels are quite high, seed levels aren’t too bad. Similar to the fleece sector strong gains were only seen in the low vm fine types with 18 micron 3% vm pieces making over 1300 cents greasy! Cardings again continued on their merry way as all three centres again posted strong gains with Fremantle leading the way closing at 1251. It wasn’t that long ago when the carding indicator at 1000 cents was a big milestone.

Crossbred wool had a reasonably good week subject to what sort of wool it was. Buyers were very choosy and some microns, mostly broader than 29 were as flat as a tack whilst the fine XB’s were very strong.

Macwool in conjunction with MLA and AWI will be hosting three Bred Well Fed Well workshops in Louth, Brewarrina and Coolah on March 27, 28 & 29 respectively. With sheep and wool prices where they are, there has never been a better time to see how you can squeeze a bit more out of your operation. If you have never been to one you owe it to yourself to come along. RSVP’s close March 23 please email kate@macrural.com.au for Louth and Bre or Sharon at admin@macwool.com.au for Coolah. Three centres will offer 44,000 bales next week.

 

Ag Concepts Fwd Prices at 10th March 2017

Micron

Date

Low

High

Micron

Date

Low

High

21

29-Mar-17

1470

1472

19

13-Sept-17

1680

1705

19

3-May-17

1700

1700

19

14-Feb-18

1630

1630

21

12-Jul-17

1400

1405

19

12-Sept-18

1610

1610

 

Main Buyers (This Week)

 

1

Techwool

8101

2

Fox & Lillie

5386

3

Chinatex

4615

4

PJ Morris

2360

5

Michell Aust.

1197

6

Kathaytex

1081

7

Tianyu Wool

965

8

Modiano

963

9

Aust Merino Exp.

656

  

Eastern Market Indicators (AUD cents/kg clean)

1522 cents é 7 cents compared with 8/032//2017

Northern Market Indicators (AUD cents/kg clean)

1605 cents é 23 cents compared with 2/03/2017

AUD/USD Currency Exchange

0.760 ê 0.0009  compared with 7/03/2017

 

 

 

 

 

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