Weekly Market Reports


12 January 2018

admin Macwool - Friday, January 12, 2018

WEEKLY MARKET REPORT

Week Ending 12th January, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S28/17

This Week

M28/17

Last Sale

S24/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2635

2641n

2538

+97

1943

+692

18

2389

2363

2300

+89

1861

+528

19

2164

2161

2086

+78

1733

+431

20

1976

1961

1883

+93

1587

+389

21

1808

1800

1745

+63

1495

+313

22

1721n

1723

1642n

+79

1444n

+277

26

1143

1156

1115

+28

941n

+202

28

818

825

785

+33

662

+156

30

598

596

590

+8

579

+19

MC

1544n

1559n

1470

+74

1164

+380

 

RECESS OVER – RECORDS BROKEN!

Wool sales resumed this week after the 3 week Christmas recess with a high degree of uncertainty and anticipation. For several years now Jan/Feb has been quite rewarding for growers selling in this period but, with the A$ appreciating by 2 cents to high 78s and the largest national catalogue since mid January last year, opinion was divided as to how the market would open up. One buyer thought this sale would be either side of where it finished pre Christmas while another thought a rise of 40/50 cents was on the cards before the FRX movements but 10 to 20 cent gains were on the cards. Both wrong!! Melbourne started this series cautiously on Tuesday but as the 3 centres sold on Wednesday the market exploded into action and consolidated these rapid rises on the final day. Gains ranged from 116 cents (16.5s) to 65 cents for 18.5 with 19 to 20 micron averaging a 100 cent climb in Fremantle. The AWEX EMI jumped 58 cents to 1818, a new record with the rise in US$ terms bigger (82 cents to 1431) due to the higher FRX. Just 45 bales of fleece were passed-in in Sydney clearing 99.1% as all microns and types, regardless of faults, benefitted from the mad scramble to secure wool. In Sale 23 we had 1 lot crack the 2000 cent barrier. This sale 5 lots from Coolah made over 2000 cents, the top being 2130 for a 14.9 micron lot at 3128 cents clean. This was the highest clean price in Australia on Thursday.

Skirtings also were swept up in the buying frenzy of Room 1 although not to the extent of fleece types as gains of 70 to 80 cents for < 19 micron and < 8% VM covered most types in that range with burrier lots (up to 15%) 20 cents dearer and heavy (20%) VM types with colour/cott unchanged. That same grower from Coolah averaged over 1700 cents for his “BKN”, 15.8 micron and 4.6% VM. Cardings also rewrote the record books as LKS skyrocketed by 60/80 cents with STN/CRT posting 50 to 60 cents gains with LMS extreme, the 3 MCIs now range from 1544 to 1564. The largest XB catalogue since December, 2015, (32%) fared well as 26 to 30 micron gained 10 to 30 cents while 32s lost 20 cents.

A great start to the year as buyers were desperate to secure volume to keep mills running after 3 weeks of recess. Demand is still outstripping supply as forecasted rosters show national quantities back to the 40K to 45K after next week’s 54,000 bale sale. This reduced quantity to come should be enough to keep buyers under pressure to buy the amount of wool to keep mills turning over. All merino indicators are at 5 year highs and record levels for 19 micron and broader as are skirtings and cardings. Sydney has its 1st 3 day sale since August with 16,000 bales on offer with Macwool selling first on Wednesday with 1145 bales up for grabs.

Ag Concepts Fwd Prices as at 12 January, 2018

Micron

Date

Low

High

21

28-Mar-18

1755

1755

21

27-Jun-18

1700

1700

21

12-Sep-18

1580

1580

 

Main Buyers (this week)

1

Techwool

9200

2

Fox & Lillie

7211

3

Aust. Merino

3060

4

Lempriere

3041

5

PJ Morris

3013

6

Seatech Ind.

2946

7

Michell Aust.

2743

8

Endeavour Wool

2692

9

Kathaytex (Vic)

2374

 

Eastern Market Indicators (AUD cents/kg clean)

1818 cents é 58 cents compared with 15/12/2017

Northern Market Indicators (AUD cents/kg clean)

1908 cents é 67 cents compared with 15/12/2017

 

AUD/USD Currency Exchange

0.7874 é 0.0204 compared with 15/12/2017

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