11 January 2019

WEEKLY MARKET REPORT

Week Ending 11th January, 2019

AWEX Northern Micron Indices Comparison

AWEX INDEX	This Week S28/18	This Week M28/18	Last Sale S24/18	Sydney Change	Last Year Sydney	Sydney Yearly Change
17	2557n	2524	2532	+25	2635	-78
18	2435	2415	2402	+33	2389	+46
19	2296	2291	2247	+49	2164	+132
20	2240	2254	2178	+62	1976	+264
21	2200	2240	2145	+55	1808	+392
22	-	2204n	2155 (M)	+49 (M)	1723 (M)	+481 (M)
26	1259n	1288	1205n	+54	1143	+116
28	886n	898	855n	+31	818	+68
30	-	706	693n (M)	+13 (M)	596 (M)	+110 (M)
MC	1179	1178n	1146	+33	1544n	-365

OFF TO A FLYING START!

Buyers hit the market with a vengeance to kick off the 2^nd half of the selling season after the 3 week Christmas recess. With the A$ commencing the new year at 70 cents (a fall of 2.30 cents from Sale 24) and dipping below that point for a night last week, most Chinese mills were keen to book up wool at the more favourable FRX. Despite the large forecast offering of 50,000+ bales (47,600 was the final figure offered) the market was dearer from the outset only to drift fractionally in the final session in Sydney and Fremantle when the FRX edged higher to its pre-Christmas level. Medium and broad types (19 to 23s) performed the best climbing 50 to 65 cents while finer microns added 15 to 35 cents as the AWEX EMI rose by 48 cents to 1910 and by 25 cents to 1371 in US$. The market in Euros and Chinese Yuan only rose less than 1% illustrating not all mills had to extend themselves from the pre-Christmas levels to buy wool.

Skirtings also kept pace with their fleece counterparts as all types and descriptions across all microns looked 30 to 40 dearer. Cardings recouped their losses from S24 as the 3 regional indicators averaged 35 cent increases as LKS/STN lifted by 35 to 40 cents. Crossbreds were back in favour to recover some of their heavy losses from early December as most microns added 30 to 70 cents despite the large quantity on offer this week - 27% of the national offering and a whopping 37% of the Melbourne catalogues were crossbred types.

A great start to the year is not uncommon as for several past Januaries the market has staged a very good rally in any of the 3 opening sales of the year. Can this week’s rise be sustained or even increase?? Opinion is divided. On one hand demand is good and the need to keep machinery running after 3 weeks of not buying wool is critical. On the flip-side, next week’s national catalogue of 54,000 bales could be the largest of the season so far and the FRX has recovered to 71.85, a figure that might look a bit too high to do business with so much wool to pick from. Year on year comparisons has just 735,000 bales sold against 935,000 last season - a massive drop of 21% in 6 months. AWTA figures show 161.3mkg tested this season to date down from 183.3mkg last season. We sell early next Thursday and, hopefully, the market can hold till then.

Ag Concepts Fwd Prices as at 11 January, 2019

Micron	Date	Low	High
21	27-Mar-19	2160	2160
21	8-May-19	2150	2150

Main Buyers (This Week)

1

Techwool

6210

2

Fox & Lillie

5207

3

Aust. Merino

2945

4
Modiano
2696

5

Endeavour Wool

2696

6

Tianyu Wool

2504

Eastern Market Indicators (AUD cents/kg clean)

1910 cents é 48 cents compared with 14/12/2018

Northern Market Indicators (AUD cents/kg clean)

1948 cents é 42 cents compared with 14/12/2018

AUD/USD Currency Exchange

0.7179 ê 0.0049 compared with 14/12/2018

Comments (0) | Trackbacks (0) | Permalink

Weekly Market Reports

11 January 2019

Comments

Post a Comment

Recent Posts

Tags

Archive