Weekly Market Reports


11 May 2018

admin Macwool - Friday, May 11, 2018

WEEKLY MARKET REPORT

Week Ending 11th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S45/17

This Week

M45/17

Last Sale

S44/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2771n

2583n

2752n

+19

2354

+417

18

2389

2241

2345

+44

2223

+166

19

2154

2105

2086

+68

1939

+215

20

2074

2072

1980

+94

1630

+444

21

2044

2048

1964

+80

1506

+538

22

-

2018

1946n

+63 (M)

1420n (M)

+598 (M)

26

1344

1330n

1341n

+3

1043

+301

28

999

999

998

+1

768

+231

30

703

706

708

-5

588

+115

MC

1397n

1426n

1377

+20

1171n

+226

RECORD BOOKS REWRITTEN – AGAIN!!

History again looked to repeat itself as all participants on the Eastern seaboard are keen watchers as to where the market in Fremantle finishes. Given the 2 hour time difference sales are well and truly done with here and, more often than not, how the market ends in the west is a guide as to which way the market will track here the next day. It was a welcome surprise to see Fremantle finish so strongly last Thursday and was just a sign of things to come as markets exploded into action on Wednesday as records were smashed. By week’s end all 3 centres made massive gains with fleece indicators climbing by 40 to 90 cents. The AWEX EMI set new daily and weekly records adding 55 cents to 1891, 23% higher than 12 months ago. The regional Indicator in the west is an incredible 2018 cents. 20 to 23 microns are at record highs as all types, regardless of yield, VM or strength were swept up in the scramble to secure quantity in most cases not worrying about faults.

Skirtings also benefitted from the supply squeeze as all types across all microns and VM levels posted gains of 50 to 60 cents. Cardings also were caught up in the buying frenzy as the 3 selling centres recorded double digit rises and the 3 MCIs are averaging 1410 cents across the country as all types in this sector rose by 15 to 30 cents. Crossbreds took a breather this sale as 28s and finer were in sellers’ favour with 30 micron and broader up to 5 cents off the pace.

A great sale to be in as there was no real indication that the market was going to rise in the fashion that it did. Futures trades pointed to a dearer market but nothing to the extent of the gains from the opening lot on Wednesday. The forecasts of a drop in the supply of wool not only in the short term but well into next year due to the state-wide drought in NSW and reduction in sheep numbers and the best FRX in a year (as the A$ sits well below 75 cents - 74.75 this morning) looked to be the catalyst for the renewed buyer activity as some lots were bought without limits and mills have virtually no wool in front of machinery waiting to be processed as hand-to-mouth operations have been the standard practice for some time.

Where to from here - that is the million$ question. The EMI, all regional indicators, 20 to 23 micron and 26s are at record levels and most merino microns at 5 year highs so for the market to keep improving would be quite the scenario given the climatic conditions affecting the quality of the clip and processors’ ability to pass on the higher costs. Next sale’s quantity is similar to this series. Will there be a correction, who knows??? 

           Ag Concepts Fwd Prices as at 11 May, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

27-Jun-18

1960

1960

21

24-Oct-18

1800

1830

21

22-Aug-18

1880

1880

21

13-Feb-19

1700

1700

      

Main Buyers (this week)

1

Techwool

5277

2

Fox & Lillie

5133

3

Aust. Merino Exp

2747

4

PJ Morris

2544

5

Seatech Ind

2375

6

Modiano

2030

7

Endeavour Wool

1893

8

Lempriere

1666

9

Kathaytex Aust.

1534

Eastern Market Indicators (AUD cents/kg clean)

1891 cents é 55 cents compared with 4/05/2018

Northern Market Indicators (AUD cents/kg clean)

1940 cents é 48 cents compared with 4/05/2018

AUD/USD Currency Exchange

0.7477 ê 0.0044 compared with 4/05/2018


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