Weekly Market Reports


13 February 2015

admin Macwool - Friday, February 13, 2015

WEEKLY MARKET REPORT

Week Ending 13th February, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S33/14

This Week

M33/14

Last Sale

S32/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1363

1327

1388

-25

1346

+17

18

1321

1313

1371

-50

1287

+34

19

1211

1217

1247

-36

1241

-30

20

1167

1173

1186

-19

1212

-45

21

1158

1170

1177

-19

1207

-49

22

1157n

1168

1167n

-10

1201n

-44

26

875n

873n

870n

+5

758n

+117

28

809

803

809

0

682

+127

30

775

774n

765

+10

640

+135

MC

909

921

888

+21

819

+90

HAPPY CHINESE NEW YEAR??? – NOT!

Firstly, an apology. Most people would’ve been pretty pleased with last week’s heading “Highest Point for 2 Years”. This was, in fact, incorrect. We were at the highest point for 12 months as one reader of our report conveyed to me and, sadly, that high point didn’t last. The AWEX EMI slipped by 9 cents to 1092 and worse in US terms (a 21 cent fall to just 836 cents). A look at the individual microns paints a bad picture as falls ranged from 25 to 50 cents for 19s and finer due, in part, to a style adjustment from the vast number of super-fine lots on offer the previous sale. Medium types took a hit also but not to the extent of their finer counterparts losing 10 to 20 cents. Growers reacted to the price adjustment as 24% of the fleece selection was passed-in on Thursday and 20% for the whole week as discounts for colour, cott, overlong and high mid-break lots were back in vouge.

Skirtings held their own after being out-performed by the fleece sector over the past few sales. Finer types (>3% VM) posted gains of 20 cents while burrier, medium micron lots looked 10 cents dearer. Cardings again re-wrote the record books as all types (regardless of micron and description) added 15 to 30 cents. Both MCIs on the eastern seaboard are now over 900 cents - 909 in Sydney and 921 in Melbourne. To illustrate the dizzy heights of this sector a prominent grower from the Marra was paid 585 cents for Lks and 621 for Crt, averaging $1103/bale and $1186/bale respectively, easily beating his Bkn prices!! Crossbreds also ignored the fleece sector’s hiccup as 26 and 30 microns lifted by 5 to 10 cents with all other indicators unchanged. The excellent prices for Room 2 wools were reflected in the clearance rate of over 98% in Sydney, the best for a long time.

At first glance a 9 cent drop in the EMI doesn’t look so bad but a quick look at the individual microns and the falls are indeed larger. In years gone by, when the EMI was made up solely from fleece microns, if 17s to 22 micron fell 20 to 30 cents the EMI would fall by the same number or thereabouts. Nowadays the EMI is a combination of Flc, Skts, Cardings and Crossbreds so we get a situation like this week whereby poor results in the fleece sector are counter-acted by good performances in other sectors to give a misleading and better than expected result via the EMI figure.

Chinese New Year - a sale that is shaping up to be the largest in 4 years (59,000) or the market just rising too quickly? Take your pick as to which scenario fits the current situation. The exchange rate can’t be it, although a fall towards 75 would help stabilise the market. Sentiment hasn’t changed any in the past week or so, demand is still there but, as always, when markets rise growers want a piece of the action. The anticipated big offering won’t happen - more like 56/57k. It’s just the Chinese New Year celebrations that might disrupt any advances in the market next week.   

Ag Concepts Fwd Prices at 13 February, 2015

Micron

Date

Low

High

21

29-Apr-15

1160

1160

 

Main Buyers (This Week)

1

Chinatex

5207

2

Techwool

4672

3

Fox & Lillie

4489

4

Tianyu

3686

5

Lempriere

3059

6

Modiano

2757

7

Aust. Merino Exp

2390

8

PJ Morris

2174

9

Kathaytex (Vic)

1964

 

Eastern Market Indicators (AUD cents/kg clean)

1092 cents ê 9 cents compared with 6/02/2015

AUD/USD Currency Exchange

0.7658 ê 0.0124 compared with 6/02/2015

Northern Market Indicators (AUD cents/kg clean)

1115 cents ê 12 cents compared with 6/02/2015

 

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