Weekly Market Reports


13 December 2019

admin Macwool - Friday, December 13, 2019

 WEEKLY MARKET REPORT 

Week Ending 13th December, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S24/19

This Week

M24/19

Last Sale

S23/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1925

1950

1908

+17

2532

-607

18

1815

1815

1808

+7

2402

-587

19

1723

1727

1706

+17

2247

-524

20

1708

1711

1683

+25

2178

-470

21 1705n 1709 1681n +24 2145 -360
26 1120n 1149 1135n -15 1205n -85

28

840n

854

833n

+7

855n

-15

30

-

671

648 (M)

+23 (M)

693 (M)

-22 (M)

MC

1040n

1058n

1061n

-21

1146

-106

MARKET BACK OVER 1500!!

After 7 straight days of falls adding up to almost 100 cents, the market had an unexpected turnaround as the AWEX EMI posted an 11 cent gain to 1503. Several factors were pointing to further losses for the market: the large offering, adverse FRX rates, the ongoing poor quality and global economic concerns almost certain to lead to a cheaper market. High rates of withdrawn wool (12%, 6000 bales) saw a much more manageable quantity for buyers to handle and some hidden prompt that appeared was all the impetuous the market needed to strengthen.

Despite the small upward adjustment this series was one of the most impressive sales of the season insofar as the big players of each segment dominated, local based traders to China led the merino sector, the biggest top-maker in the world was atop the crossbred sector and the largest global carbo processor was No.1 for cardings and oddments. Most fleece microns added 10 to 25 cents to their values. Skirtings had a mixed sale as the opening sessions’ gains were given up on the last day to leave them just in sellers’ favour for the week. Cardings averaged 19 cent losses across the 3 centres as all types fell by 10 to 30 cents. Crossbreds also had mixed results as < 26 microns were 15 cents lower while broader types added 10/20 cents.

The steadying market was welcome news after 3 weeks of falls and no talk that the market was about to stop its downward trend. Even after the high percentage of withdrawals buyers were faced with the largest catalogue since May but the end result was pleasing to all participants. The national turnover for wool sold passed the $1billion mark this week but it took 7 more sales to reach this milestone than it did last season - a result of the falling market and less wool offered (80,650 bales 10%). In what will be good news for the global economy (and the wool market) the US has agreed to halve tariff rates on $350bn worth of Chinese goods, some of which were as high as 25% and, in return, China would boost purchases of US farm products. This latest agreement should avoid US threats to impose tariffs on more than $150bn worth of Chinese exports that were due to start next week. Stock market reaction was swift as Asian markets rose 2% and Wall Street again set new records. Confidence is a great thing!! The market should end the year on a solid to dearer note for the final sale of the year.

Southern Aurora Fwd Prices              

Micron

Date

Low

21

January 20

1670

Main Buyers (This Week)

1

Techwool

5954

2

Fox & Lillie

4166

3

Endeavour Wool

4068

4

Tianyu Wool

3195

5

Aust. Merino

2922

6

PJ Morris

2323


Eastern Market Indicators (AUD cents/kg clean)

1503 cents é 11 cents compared with 06/12/2019


Northern Market Indicators (AUD cents/kg clean)

1527 cents é 3 cents compared with 06/12/2019

   

AUD/USD Currency Exchange

0.6885 é 0.0046  compared with 06/12/2019

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