Weekly Market Reports


14 July 2017

admin Macwool - Friday, July 14, 2017

WEEKLY MARKET REPORT

Week Ending 14th July, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S02/17

This Week

M02/17

Last Sale

S01/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2196

2192

2192

+4

1577

+619

18

2108

2072

2118

-10

1543

+565

19

1824

1854

1845

-21

1501

+323

20

1607

1610

1618

-11

1479

+128

21

1530

1538

1529

+1

1469

+61

22

1477n

1474

1462n

+15

1456n

+21

26

1108

1110n

1101n

+7

1103n

+5

28

766

778

759

+7

755

+11

30

560

568

549

+11

636

-76

MC

1139n

1153n

1164

-25

1084

+55

A SOLID ENDING – ONLY JUST!

The final sale before the annual 3 week winter recess saw 46,000 bales up for sale. The AWEX EMI struggled to move as markets on the Eastern Seaboard were mixed, back 5 cents in Sydney and unchanged in Melbourne resulting in the EMI giving up just 2 cents to 1522. To make matters more confusing, Fremantle’s indicator rose by 9 cents to 1570. The upward shift in the FRX by 1 cent to 77.07 had the market gaining 15 cents in $US terms to 1173 - this rise in the A$ failing to dampen demand overall. For the 2nd sale running the predicted solid to dearer market didn’t really eventuate except for sub 17.5 and 22 micron that rose by 5 to 15 cents. 18 to 20s fell 10 to 25 cents. Premiums were hard to come by unless lots had exactly the “right specs” but some passed-in lots from a fortnight ago sold up to 80 cents higher and a few “non-mulesed” types came under renewed buyer pressure.

Skirtings finished the sale on a stronger note as buyers scrambled to secure what quantity was on offer. Buyer emphasis concentrated on the < 18 micron types with < 4%VM, these lifting by 15 to 25 cents (the odd lot up by 50 cents) as most other types remained rock solid bar some carbonising lots with heavy colour/cott. Two lots from Dunedoo and 3 lots of BKN from Orange made 1000 to 1148 cents - great money!! In fact, one lot of WNR BKN made more on a clean basis than one of its fleece lines did, 1986 to 1972. Cardings looked to have run their race for the moment. Last sale’s losses were compounded even more as most types in this sector were cheaper. LKS looked to be the hardest hit-30 to 50 cents back- while STN/CRT fell by 10 cents. Crossbreds finished the sale on a rising note mirroring last sale’s gains, broader types up by 5/10 cents while < 25 micron quoted 20 to 30 cents to the good.

The last 2 sales clearly demonstrate the ability of the market to hold its levels (or thereabouts) in the face of adverse factors such as larger volumes and RFX movements as subtle shifts either way for various microns has occurred.  Buyers were keen to purchase wool but still very choosy with what they bought and price sensitive. New demand was mainly for merino fleece < 19 micron, skirtings and crossbreds as some broader fleece types and cardings took a hit from a lack of demand. The largest local exporter and biggest Chinese indent buyer again led the way as other buyers fell into line to pick away at the offering. When Fremantle joined in another large local exporter exerted more pressure on the better fleece types to swamp all rival orders as other buyers had to up the ante to complete outstanding orders. Topmakers were also more active on the higher VM and “off” types in the fleece room as well as skirtings to pretty much keep machinery running while the supply of wool globally comes to a standstill for the next 3 weeks. Most participants, more-so buyers, head off on a 3 week recess with wool sales to recommence 9th August. We should have a catalogue of 1200 bales to offer. 

Ag Concepts Fwd Prices at 14 July 2017

Micron

Date

Low

High

21

16-Aug-17

1525

1525

21

30-Aug-18

1505

1505

Main Buyers (This Week) 

1

Fox & Lillie

4758

2

Techwool

4443

3

Tianyu

4413

4

Aust Merino Exp.

4394

5

Lempriere Aust.

2831

6

PJ Morris

2824

7

Modiano

2689

8

Seatech Ind.

2542

9

Kathaytex Aust.

1093

 

Eastern Market Indicators (AUD cents/kg clean)

1522 cents ê 2 cents compared with 7/07//2017

Northern Market Indicators (AUD cents/kg clean)

1588 cents ê 5 cents compared with 7/07/2017

AUD/USD Currency Exchange

0.7707 é 0.0107  compared with 7/07/2017

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