Weekly Market Reports


13 April 2018

admin Macwool - Friday, April 13, 2018

WEEKLY MARKET REPORT

Week Ending 13th April, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S41/17

This Week

M41/17

Last Sale

S39/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2763

2723n

2764

-1

2317

+446

18

2293

2312

2301

-8

2173

+120

19

2037

2047

2037

0

1895

+142

20

1929

1918

1922

+7

1608

+321

21

1893

1878

1888

+5

1507

+386

22

-

1854

-

-4 (M)

1410 (M)

+444 (M)

26

1208

1204n

-

+6 (M)

1043 (M)

+161 (M)

28

899

908

859

+40

735

+164

30

638

638

610

+28

584n

+54

MC

1352n

1375n

1332

+20

1159

+193

BIG QUANTITY, NO PROBLEM!!

All participants, especially growers, were holding their collective breaths as this week’s sale commenced after the Easter recess last week. The large catalogue at the Easter Show and the forecast of a 57,000 bale offering had buyers wondering where all the wool was coming from?? Melbourne opened proceedings on Tuesday and what we feared did in fact happen. The market cheapened by 16 cents as < 18 micron retracted by 50/60 cents with others losing 10 to 20 cents. The market was mixed on Wednesday as Sydney fell to Melbourne’s level with them stabilising and Fremantle just in sellers’ favour. Futures traded better than pre-Easter levels which gave hope that the market may have bottomed. Thursday saw a significant turn-around in fortunes as all 3 centres posted double digit rises. By week’s end the EMI appreciated by just 4 cents to 1776 (16 micron the only real culprit) falling by 23 cents as all others were either side of unchanged.

Skirtings had a firm sale after a 20/30 cent fall on the opening day. All types recovered these losses in the final series to finish the sale solid. Cardings were the best performing sector of any as the 3 centres averaged 27 cent rises with LKS pushing the indicators up with gains of 25 to 50 cents with all other types fully firm and some LMS extreme. Crossbreds also looked to be in buyers’ favour as gains ranged from 20 to 40 cents for all microns bar 32s that fell around 10 cents.

An excellent result considering the sentiment early in the week. Despite all currencies used in wool trading appreciating between 0.7% and 1.2% against the AUD the wool market bucked that usually negative trend causing reaction on the AUD pricing locally and continuing upwards. The early sale results initially matched the general concern of buyers pre-sale that quality and the big quantity on offer was going to hamper the market’s ability to hold prices at the pre-Easter levels. By the end of the week this was not the case as forecast quantities for the next 3 weeks are averaging under 40,000 bales per week and the dearer futures market that led the turn-around in fortunes on Thursday indicates that the underlying factors in the market that demand is exceeding supply should hold wool growers in good stead for the short term. National quantities drop to 40,000 bales next week with Macwool offering 1050 bales on Wednesday with a favourable market predicted.

Ag Concepts Fwd Prices at 13 April, 2018

Micron

Date

Low

High

21

16-May-18

1855

1855

21

11-Jul-18

1780

1800

21

12-Jun-19

1600

1600

Main Buyers (This Week)

1

Fox & Lillie

6388

2

Techwool

6149

3

PJ Morris

3525

4

Aust. Merino Exp.

3503

5

Seatech Ind.

3338

6

Lempriere

3256

7

Tianyu

3214

8

Endeavour Wool

2518

9

Kathaytex Aust.

1151

Eastern Market Indicators (AUD cents/kg clean)

1776 cents é 4 cents compared with 29/03/2018

  Northern Market Indicators (AUD cents/kg clean)

1846 cents é 9 cents compared with 29/03/2018

  AUD/USD Currency Exchange

0.7750 é 0.0050 compared with 29/03/2018

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