WEEKLY MARKET REPORT
Week Ending 14th April, 2017
AWEX Northern Micron Indices Comparison
AWEX INDEX |
This Week S41/16 |
This Week M41/16 |
Last Sale S40/16 |
Sydney Change |
Last Year Sydney |
Sydney Yearly Change |
17 |
2317 |
2287 |
2267 |
+50 |
1509 |
+808 |
18 |
2173 |
2138 |
2103 |
+70 |
1465 |
+708 |
19 |
1895 |
1933 |
1798 |
+97 |
1411 |
+484 |
20 |
1608 |
1600 |
1486 |
+122 |
1375 |
+233 |
21 |
1507 |
1508 |
1375 |
+132 |
1361 |
+146 |
22 |
1405n |
1410 |
1303n |
+102 |
1340n |
+65 |
26 |
1041 |
1043 |
1008n |
+33 |
1014n |
+27 |
28 |
735 |
736 |
730n |
+5 |
791n |
-56 |
30 |
584n |
590 |
575n |
+9 |
681n |
-97 |
MC |
1159 |
1184n |
1176 |
-17 |
1074 |
+85 |
GROWERS AND BUYERS LEVEL PEGGING. HAPPY EASTER!
The inkling we got last Thursday that the market may have bottomed out
and was in recovery mode, was spot on. Futures trading suggested a dearer
market to the tune of 20/30 cents. This was exactly the case and more as the
market built momentum as the sale progressed. Two days of solid rises saw the
AWEX EMI finish at 1512 cents, a leap of 53 cents for the week, and when
converted into $US terms saw a 33 cent jump to 1134 aided by the fall in the
exchange rate to below 75 cents. Medium types -19 to 22s- led the charge lifting
by 100 to 135 cents to close within reach of their peaks of 4 weeks ago. Sub 19
microns were a bit more subdued than previous sales as <17.5 gained 45/50
cents while 18 to 18.5 were quoted 70 to 80 cents better to have 17 and finer
equal to or a touch higher and 17.5 to 19 micron still 30 to 60 cents from
those March peaks.
Skirtings took till the final day of selling to add to their previous
weeks quotes. By the finish of the sale 18 micron and finer posted 10 to 20
cent gains with the odd “cracker” up to 50 cents higher while the coarser types, 19 and broader, with
heavier VM (>8%) leapt by 30 to 50 cents. Crossbreds also followed the lead
of the skirting’s as a quiet opening day led to renewed buyer activity in the
final session to see all microns add 5 to 30 cents. The only sector to suffer
losses was the cardings, the MCI back by 17 cents to 1159 as all types looked
about 20 cents cheaper.
We need to look no further than the past 3 sales to see how sentiment can change so quickly, 2 sales of a market almost in free-fall to a complete reversal in the space of a week. The market fell 87 cents over a 2 week period only to stage a 53 cent rebound. Every-one was confidant of the lift in prices was on the cards, but no-one predicted the extent of the recovery and how quick it happened. 3 to 4 buyers (un-named) drove the price lift led by the largest Chinese indent buyer. The erratic shift in prices is due to 2 major influences, local buyers and exporters know exactly the sentiment of their major clients and transfer demand –or lack of it-instantly into the sale rooms. Also affecting the situation is the hand-to-mouth method of purchasing from the Chinese is the preferred way to acquire wool. This has local exporters exposing themselves to less risk selling promptly so manufacturers avoid the pitfalls of buying too far into the future. After 14 frantic sales we take a week’s breather to get set for the run to June. Sales recommence on Wednesday 26th April with a national catalogue of 50,000+ bales, we will on that day with 1400 bales.
Ag Concepts Fwd Prices at 7 April 2017
Micron |
Date |
Low |
High |
19 |
7-Jun-17 |
1800 |
1800 |
19 |
9-Aug-17 |
1725 |
1725 |
19 |
25-Oct-17 |
1700 |
1700 |
Main
Buyers (This Week)
1 |
Techwool |
6584 |
2 |
Fox & Lillie |
4101 |
3 |
PJ Morris |
2215 |
4 |
Lempriere Aust. |
2194 |
5 |
Kathaytex (Vic) |
1003 |
6 |
Modiano |
883 |
7 |
Tianyu |
791 |
8 |
Vic Wool Proc. |
720 |
9 |
Aust Merino Exp. |
647 |
Eastern Market Indicators (AUD cents/kg clean) 1512 cents é 53 cents compared with 06/04//2017 |
Northern
Market Indicators (AUD cents/kg clean) 1608 cents é 59 cents compared with 06/04/2017 |
AUD/USD
Currency Exchange 0.750 ê 0.0005
compared with 06/04/2017 |
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