WEEKLY MARKET REPORT

Week Ending 11^th December, 2015

AWEX Northern Micron Indices Comparison

WINDING UP FOR A GOOD FINISH!

This sale’s big anticipated selection of 49,000+ bales didn’t eventuate as the final roster totalled 47,700 and over 1,900 were withdrawn prior to auction finishing with 45,800 offered to the trade - still the biggest sale for 5 weeks. This, coupled with the $AU falling to 72 cents, was enough impetus to see the market edge ahead by 4 cents to 1251 cents after a shaky start on Tuesday in Melbourne. By week’s end the only indicator not recording a positive move was 17.5, back by 1 cent. All other microns out to 18.5 were in sellers’ favour to 5 cents with 19 and broader 10 to 20 dearer. Buyers were less selective in their purchasing patterns as types not fitting specific orders closed the price gap on their more fancied counterparts with premiums up to 50 cents for a wide spectrum of wool on offer.

Merino skirtings had a good sale as all types and descriptions finished fully firm with a pocket of BKN in the 17 micron range < 3% VM quoted 10 cents dearer. Cardings came off the boil as a pull back in prices was a matter of when, not if, following their bull run over recent sales. The damage was fairly limited as LKS looked to be the main culprit losing 20 cents while all other types in this sector were solid to sellers’ favour. Despite another massive offering on the Eastern Seaboard (10,000 bales, 28.5%), crossbreds continued their run of losses but the pace of the falls was somewhat tempered compared to recent weeks as most microns gave up 5 to 10 cents, bar the 28 to 30 microns, to the good by up to 5 cents - a good outcome considering the enormity of the selection.

The feature of this week’s sale came from outside the sale room as major currencies fluctuated wildly. The Euro was the standout mover, over 4% against the $AU. Also, as mentioned, the US to AU rate moved sharply from mid 73s last week to 72.10 on Wednesday only to strengthen back to high 72s on the back of excellent employment data released yesterday - more jobs created than expected and unemployment rate lowest for 3 years. Analysts are still split on the movement of the local currency. Weaker than thought global growth and a worsening Aussie budget next year could see the currency fall to low 60s but, on the flip-side, the rebound could go as high as 80 cents which is bad news for the wool market. Next week sees the final sale of the year with 44,000 bales to be offered. Not too much change is expected but price squeezes for specific types may occur as exporters fight to fill commitments prior to the 3 week recess.

 

Ag Concepts Fwd Prices at 11 December, 2015

 

                                                                Main Buyers (This Week) 

1	Techwool	5931	2	Tianyu Wool	4182	3	Fox & Lillie	3843
4	Global Wool Exp.	3597	5	Chinatex	3281	6	Lempriere (Aust)	2485
7	Michell Aust.	1985	8	Modiano (Aust)	1651	9	PJ Morris	1614

 

 

Eastern Market Indicators (AUD cents/kg clean) 1251 cents é 4 cents compared with 4/12/2015	Northern Market Indicators (AUD cents/kg clean) 1278 cents é 5 cents compared with 4/12/2015
AUD/USD Currency Exchange 0.7295 ê 0.0016  compared with 4/12/2015