Weekly Market Reports


13 January 2017

admin Macwool - Friday, January 13, 2017

WEEKLY MARKET REPORT

Week Ending 13th January, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S28/16

This Week

M28/16

Last Sale

S24/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1943

1899n

1788

+155

1554

+389

18

1861

1839

1732

+129

1531

+330

19

1733

1712

1624

+109

1451

+282

20

1587

1576

1496

+91

1391

+196

21

1495

1479

1415

+80

1384

+111

22

1444n

1436n

1381n

+63

1369n

+75

26

941n

939n

939

+2

978

-37

28

662

663

658

+4

834

-172

30

579

568

598

-19

778

-199

MC

1164

1163

1132n

+32

1140

+24

A LATE CHRISTMAS PRESENT!

The market exploded into action at this week’s resumption from a well earned 3 week Christmas recess.  Even as far back as the Friday before Christmas, the opening week of the recess, business had been brisk (to say the least) with plenty of wool being booked up and far more enquiry than local traders can remember in a sale recess for quite some time.  Concerns of a drop off in supply and increasing demand coupled with the $A falling below 72 cents and the 3 week recess, forced exporters to start the year off with buying vigour not seen for a long time. Talk of the market opening up to 50 cents dearer was spot on in Melbourne on Tuesday, the gains in the order of 35 to 75 cents. This momentum continued on in earnest on Wednesday and Thursday. By week’s end <18 micron saw climbs of 130 to 165 cents. 21 to 18.5s benefitted by 80 to 110 cents while 22s and broader up by 50-60 cents. The EMI posted a 67 cent jump to 1422 and a 56 cent lift in $US terms to 1056. Just 34 bales of fleece were passed-in in Sydney, clearing 99.4%.

Skirtings were also caught up in the price hike of their fleece counterparts. Finer lots <19 micron containing <5% VM were quoted 80 to 120 cents higher with the medium types with over 5%VM adding 60-70 cents to their pre Christmas values with 9 lots of “BKN” making  1050 to 1246 cents. Cardings were also caught up in the big price rises with all types in this sector 30-40 cents to the good. The 3 carding indicators range from 1163 to 1171, now into record territory.  We had “CRT” make over 1000 cents and “LKS” from the same clip 828 cents. The Crossbred sector was stagnant, 25 to 28 and 32 micron in sellers’ favour with 30 micron down by 20 cents with most commentary on this sector predicting more pain to come before any sort of recovery at least 6-12 months away.

A great sale to be in if you’re offering Merino wool but still not so good for Crossbred growers. Bidding at times was frantic and at times “buy at best” was the only option buyers looked to have up their sleeve. The EMI, at 1422, is at its highest level since June 2011 - five and a half years ago and now only 3 cents shy of that peak. Good news for fine-wool growers as the recovery for finer, <19 micron continues as fine, long wool types are back in vogue. The gap continues to widen between fine and broad microns - 238 cents from 21 to 19s and a 274 cent gap from 20s to 18 micron.  55,000 bales are on offer next week but keen demand should see the trade absorb this quantity without too much trouble. We sell late in Thursday with 1465 bales on offer.

Ag Concepts Fwd Prices at 13 January 2017

Micron

Date

Low

High

Micron

Date

Low

High

19

8-Mar-17

1635

1635

21

14-Jun-17

1419

1420

21

22-Mar-17

1425

1425

21

8-Nov-17

1350

1350

21

10-May-17

1435

1440

19

14-Mar-18

1550

1550

 

Main Buyers (This Week) 

1

Techwool

8712

2

Fox & Lillie

5415

3

Aust. Merino Exp

3699

4

Chinatex (Aust)

3229

5

Michell Aust

2604

6

Lempriere (Aust)

2470

7

Modiano

2091

8

Tianyu

2065

9

Kathaytex Aust

1819

  

Eastern Market Indicators (AUD cents/kg clean)

1422 cents é 67 cents compared with 16/12/2016

Northern Market Indicators (AUD cents/kg clean)

1490 cents é 78 cents compared with 16/12/2016

AUD/USD Currency Exchange

0.7464 é 0.0042  compared with 16/12/2016

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