Weekly Market Reports


10 May 2019

admin Macwool - Friday, May 10, 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

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=738426&A=Trackback
Trackbacks
Post has no trackbacks.