10 May 2019

WEEKLY MARKET REPORT

Week Ending 10th May, 2019

AWEX Northern Micron Indices Comparison

AWEX INDEX	This Week S45/18	This Week M45/18	Last Sale S44/18	Sydney Change	Last Year Sydney	Sydney Yearly Change
17	2480	2364	2493	-13	2771n	-291
18	2413	2347	2425	-12	2389	+24
19	2288	2279	2304	-16	2154	+134
20	2259n	2247	2278	-19	2074	+185
21	-	2246	2260 (M)	-14 (M)	2048 (M)	+198
26	-	1523	1511 (M)	+12 (M)	1330 (M)	+193 (M)
28	-	1323	1308 (M)	+15 (M)	999 (M)	+324 (M)
30	-	1005n	1005 (M)	0 (M)	703 (M)	+302 (M)
MC	1093	1089n	1094	-1	1397n	-304

MOMENTUM STALLS BUT FOR HOW LONG?

The week to week national catalogue was reduced by 24% to 32,800 bales. The FRX was in favour of the A$ that dropped to a 3 year low below 70 cents. Many buyers were reporting that processors need to purchase wool after orders had been placed and the short term forecast for quantities in the low 30,000 range should have augured well for a rising market?? Not necessarily as one of the 2 big buyers for China was still cautious in their purchasing patterns securing only 4% (down on their usual 10/15%) of the volume bought. Their absence and a “sit and wait” approach by most other exporters saw the market drift by 8 cents to 1952 and 13 cents to 1361 in US$ terms with most falls on the final day of sales. The indicators gave up 10 to 20 cents as good style types barely moved while dustier wools came off as much as 50 to 70 cents in some cases.

The skirting market split into two as < 17 micron lost 20/30 cents while all others were solid to sellers’ favour. Cardings had a steadier sale as the East Coast indicators were unchanged to a touch dearer while in Fremantle their MCI gave up 25 cents to have all 3 markets within 5 cents of each other (1089 to 1094). Crossbreds had subtle rises, up to 10 to 15 cents that continued to create new records since reporting these microns began, 1976 (30 micron) and 1983 for 28s and 26s within 20 cents of their all time record set in June, 2018.

Key data was released this week on Australian wool exports’ destinations and value. The season to March has volume exported down by 12% (an obvious fall in production) but an increase in value of 3% indicating just how good the market is going. Countries to lose volume were: China back by 17%, Czech Republic 36%, Egypt &Taiwan 24% and Malaysia down by 41%. China’s value was just 1% lower with India and Italy + 14%, Czech Republic -21%. The big mover is Thailand, their volume up by a massive 167% on the previous season and value climbed by 145%, a sign that more and more processing plants are relocating from other parts of Asia to the lower wages/costs countries. 33,300 bales are rostered next week. We will offer 1072 on Thursday and, hopefully, all exporters are operating to full capacity to secure the dwindling volume on offer.

Ag Concepts Fwd Prices as at 10 May, 2019

Micron	Date	Low	High
21	19-Jun-19	2260	2260
21	21-Aug-19	2240	2240
21	13-Nov-19	2125	2125

Main Buyers (This Week)

1
Fox & Lillie
3700

2
Aust. Merino
3473

3

Tianyu Wool

3355

4
Techwool
2880

5
Endeavour Wool
1294

6

Seatech Ind.

1181

Eastern Market Indicators (AUD cents/kg clean)

1952 cents ê 8 cents compared with 03/05/2019

Northern Market Indicators (AUD cents/kg clean)

1989 cents ê 8 cent compared with 03/05/2019

AUD/USD Currency Exchange

0.6974 ê 0.0047 compared with 03/05/2019

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Weekly Market Reports

10 May 2019

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