Weekly Market Reports


11 January 2019

admin Macwool - Friday, January 11, 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 2nd 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

     
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