Weekly Market Reports


12 June 2015

admin Macwool - Friday, June 12, 2015

WEEKLY MARKET REPORT

Week Ending 12th June, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S50/14

This Week

M50/14

Last Sale

S49/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1618

1627

1624

-6

1240

+378

18

1578

1577

1607

-29

1177

+401

19

1521

1519

1553

-32

1148

+373

20

1478

1481

1516

-38

1141

+337

21

1469

1466

1499

-30

1139

+330

22

1426n

1421

1458n

-32

1131n

+295

26

1165n

-

955

+10

825n

+340

28

971

974

863

+16

678n

+293

30

865

869

743n

+2

636n

+229

MC

1112

1134

1096

+16

805

+307

ALWAYS A CASE OF ‘WHEN’, NOT ‘IF’

The market finally did what most people, sellers mainly, had feared. After the resumption of sales since Easter the EMI has risen 267 cents (16 of the 17 selling days in positive territory before this week). The correction came this sale as the EMI lost 17 cents (1.2%) to 1356. In US terms the losses were minute - 8 cents to 1053. The currency remained pretty static for the week trading from mid 77s to high 76s. To say it was a strange sale would sum it up most accurately. We were lucky to draw Wednesday where, in Sydney, the market finished in sellers’ favour contrary to the forecasts of a cheaper trend. The cheaper trend did occur in Melbourne as our well informed source did predict. Fremantle did have a one-day sale where they were forced to play catch-up. They had missed 3 selling days where the EMI had risen a massive 97 cents; their MPGs all recording 100 to 150 cent gains as their regional indicator leapt 104 cents. Thursday was back to normal as both centres on the east coast took a step backwards as all microns (broader than 17.5) gave up 30 to 40 cents with the finer types just 5 to 10 cents back. The one highlight was 21s getting to 1500 cents on Wednesday as some of our better types were up to 20 cents higher than their indicators with some spinner types adding up to 50 cents but some of the off-types certainly not in demand as they have been over the past month.

Skirtings had a mixed sale as the opening day’s session of a solid tone was negated by losses of up to 10 cents on the final day. Cardings fared the best of any sector as gains of 10 to 15 cents were common as the MCI in Sydney rose 16 cents to break through the 1100 cent mark - now 1112 cents. Crossbreds also showed the merino sector how it was done. Despite Thursday’s hiccup, finer microns (25 to 28s) finished 10 to 15 cents up as the coarser types from 30 microns were up to 5 cents off.

It was no real surprise to see the market taper off this week as talk of a correction was on the showfloor for a few sales. As the market faltered the pass-in rate jumped, up to 5%, the largest in 4 weeks. Next sale has Fremantle sitting out as the east coast has only 24,000 bales up - the smallest offering for 12 months. This small selection however may not be enough to stave off another correction according to most good judges. If the large Chinese indent interest continues some large buyers may well question their decision to sit on the fence this sale but, if these are now mostly filled, it could be a master-stroke. Time will tell. One buyer in particular, Chinatex, dominated the fleece sector securing 30% (5956 bales) as indent orders again held sway over forward sellers. The same scenario led to two large buyers snapping up 38% of the crossbred selection and Michells taking home 30% of the oddments on offer.    

Euromonitor International is predicting China to oust the US as the world’s largest apparel and footwear market from this year. This market was worth US$220 billion 5 years ago but increased to US$350 billion this year (up 37%) compared to the US value of 335 billion - staggering figures with Chinese economic growth to increase over the next 5 years.

Ag Concepts Fwd Prices at 12 June

Micron

Date

Low

High

21

5-Aug-15

1350

1400

21

23-Sep-15

1360

1370

21

9-Dec-15

1300

1300

19

13-Jan-16

1400

1400

21

23-Mar-16

1280

1280

 

Main Buyers (This Week)

1

Chinatex

7042

2

Fox and Lillie

4718

3

Techwool

3122

4

Lempriere

2098

5

Michell

2037

6

Australian Merino

1836

7

G Schneider

1003

8

H Dawson Sons

984

9

Kathaytex (Vic)

717

Eastern Market Indicators (AUD cents/kg clean)

1356 cents ê 17 cents compared with 5/06/2015

Northern Market Indicators (AUD cents/kg clean)

1382 cents ê 15 cents compared with 5/06/2015

AUD/USD Currency Exchange

0.7766 é 0.0035 compared with 5/06/2015

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