Weekly Market Reports


13 September 2019

admin Macwool - Friday, September 13, 2019

WEEKLY MARKET REPORT 

Week Ending 13th September, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S11/19

This Week

M11/19

Last Sale

S10/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1930

1969

1842

+88

3008

-1078

18

1853

1874

1783

+70

2708

-855

19

1755

1833

1578

+177

2439

-684

20

1682

1785

1497

+185

2303

-621

21 1645n 1769 1487n +158 2274 -629
26 1165n - 1100n +65 1493n -328

28

953n

961

853n

+100

975

-22

30

813n

818n

703 (M)

+115 (M)

738n

+75

MC

906n

1007n

814n

+92

1563

-657

HISTORIC RISES BUT WHERE TO FROM HERE??

What an incredible week for the market as the recovery was nothing short of spectacular. After last sale’s stable market and signs of a level being found last Thursday, futures trading was pointing to a 30/40 cent lift and by Tuesday night predictions were in the 80 to 100 cent range. Both were wrong! The sale in Sydney was condensed to a one day sale due to lack of quantity with gains of 70 to 90 cents for < 18 micron and the broader types 130 to 185 higher. The AWEX EMI added 170 cents to 1535 - the largest weekly gain on record - with the 130 climb on Wednesday the biggest daily rise of all time. Skirtings added 80 to 100, XBs rose 65 to 100 and cardings put on 50 to 100 cents. Despite this steep rise for all sectors, the pass-in rate was 6.2%

After loosing 389 cents (24.5%) since the resumption of sales over the past 5 weeks the market made a stunning comeback to gain 170 cents (12.2%) in one week to wipe out 44% of the losses.  Buyers were frantic to secure quantity as discounts shrank and premiums for better types rose to extreme levels. As one buyer said, “Exporters stopped selling the market down” as the volume of wool on offer compared to the wool actually sold over the past 5 sales had declined by 40/50% due to the high passed-in rates and withdrawn lots. Another factor was the sudden rush of woolen clothing imported to the US from China before last week’s additional 15% import duty came into effect as US retailers tried to beat the 1st September deadline. For June and July the year-on-year % of wool imports rose by 30%. This major increase in exported clothing may have left some manufacturers short on stock in China and with small offerings to pick from, panic looks to have set in. Also adding to the good news was the softening stance between the US and China over tariffs and agreeing to a resolution may not be just a dream but reality sooner rather than later which can only help consumer confidence north of the equator.

Kerin Poll held their ram sale this week with a total clearance of 450 rams to average $2500 topping out at $10,000. At the feature sale in Adelaide 2 rams were bought by syndicates for $100,000 (poll) and $72,500 (horn). These results augur well for the stud selling season despite the on-going drought and less ewes to join and maybe not as many rams needed for upcoming joinings. After the overdone falls in August and this sale’s correction anything is possible in this current volatile market. Who knows what for next week??

Ag Concepts Fwd Prices as at 13 September, 2019       

Micron

Date

Low

High

21

27-Nov-19

1520

1535

21

22-Jan-20

1600

1600

Free knitted woollen jumpers for poddy lambs. Call into our office in Dubbo or Macdonald Rural at Brewarrina and take as many as you need. Many colours and styles to choose from!

Main Buyers (This Week)

1

Fox & Lilliel

3267

2

Techwool

1997

3

Modiano

1334

4

Endeavour Wool

1303

5

PJ Morris

1298

6

Aust. Merino

972

Eastern Market Indicators (AUD cents/kg clean)

1535 cents é 170 cents compared with 06/09/2019

Northern Market Indicators (AUD cents/kg clean)

1534 cents é 126 cents compared with 06/09/2019

   AUD/USD Currency Exchange

0.6878 é 0.0059 compared with 06/09/2019

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