Weekly Market Reports


12 February 2016

admin Macwool - Friday, February 12, 2016

WEEKLY MARKET REPORT

Week Ending 12th February, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S33/15

This Week

M33/15

Last Sale

S32/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1569

1563n

1553

+16

1363

+206

18

1531

1526

1512

+19

1321

+210

19

1454

1445

1412

+42

1211

+243

20

1406

1404

1373

+33

1167

+239

21

1401

1395

1368

+33

1158

+243

22

1386n

1389n

1359

+27

1157n

+229

26

972n

967n

962

+10

875n

+97

28

831

839

826

+5

809

+22

30

743

739n

746

-3

775

-32

MC

1094

1113

1106

-12

909

+185

 CHINESE NEW YEAR HOLDS NO FEAR!

Chinese New Year and wool sales quite often don’t mix really well. More often than not the market takes a fall due to an almost complete shut-down of business for this most important holiday in the eyes of the Chinese people. In years gone by booking up wool was nearly impossible invariably resulting in a cheaper market. The fresh enquiry that was supposedly converted into sales a few weeks ago looks to have filtered through to the auction rooms this sale. The market had 3 good days of rises with all centres’ regional indicators lifting by 10 to 15 cents. The EMI has all but recovered the losses of the past 2 sales - a 19 cent jump to 1284. In US terms, as the $A fell the market recorded a 4 cent rise to 913. Most microns up by 20 to 35 cents, 19s the best performer, up by 42 cents, while 17 and finer gained 15 cents despite the cracking selection of Launceston super-fines offered early in the week. Some of these types up to 350 cents better than previous sales’ quotes as two Italian companies locked horns on these superior types. As is always the case, the lower spec types closed the price gap on their more fancied counterparts, the pass-in rate for fleece dropping to just 2.4% in Sydney.

Skirtings followed the fleece room’s lead but it wasn’t until the final day that prices saw heavier buying competition. All types and descriptions added 10 to 15 cents with the <19 micron under 3% VM up to 20 cents better, some carbonising types >15%  VM were erratic, some cheaper than previous sales with others dearer. The party looks to have ended for cardings as further price reductions saw the MCIs in Sydney and Fremantle fall below 1100 cents - still very good levels. The drop in prices ranged from 10 to 15 cents for most types and descriptions despite a firming in prices on the final day as buyer interest intensified. Some commented as to the “seasonality” of the carbonising business coming to an end recently but those mills are expected to renew orders soon so production can commence for the 2016/17 Northern Hemisphere autumn/summer retail period. Crossbreds had mixed results as the finer microns <28 were 5 to 10 dearer while the broader edge >30 gave up 5 cents, the offering back to 23% of the national catalogue.

The market’s resilience passed with flying colours this week under extreme pressure from the Chinese New Year holiday and the uncertainty in global stock markets and falling commodity prices, sending currencies on another yo-yo ride this week. Next week has a national roster of 42,000 bales with strong interest expected, particularly on the dwindling supplies of merino fleece wool, even with quite a large number of Chinese people still on holidays.

Ag Concepts Fwd Prices at 12 February

Micron

Date

Low

High

21

10-Aug-16

1330

1330

 

  

Main Buyers (This Week)

 

1

Fox & Lillie

4279

2

Techwool

4212

3

Tianyu Wool

3301

4

Chinatex

2649

5

Global Wool Exp.

2605

6

Aust. Merino

2263

7

PJ Morris

1868

8

Lempriere (Aust)

1665

9

Modiano

746

 

 

Eastern Market Indicators (AUD cents/kg clean)

1284 cents é 19 cents compared with 5/02/2016

Northern Market Indicators (AUD cents/kg clean)

1309 cents é 20 cents compared with 5/02/2016

AUD/USD Currency Exchange

0.7108 ê 0.0078  compared with 5/02/2016

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