Weekly Market Reports


15 June 18

admin Macwool - Friday, June 15, 2018

WEEKLY MARKET REPORT

Week Ending 15th June, 2018

 

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S50/17

This Week

M50/17

Last Sale

S49/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2857

2821

2863n

-6

2197n

+660

18

2509

2491

2519

-10

2123

+386

19

2280

2286

2271

+9

1870

+410

20

2261

2277

2256

+5

1638

+623

21

2259n

2272

2254

+5

1554

+705

22

2246n

2270n

2231n

+15

1485n

+761

26

-

1494n

1491n

-

1109n

+385 (M)

28

-

1003

1020n

-

767n

+263 (M)

30

-

695

700n

-

-

-

MC

1474n

1475n

1479n

-5

1181

+293

 

WOOL MARKET PEAKED – NO !

 

It seemed last week that our market had peaked, but spurred along by insistent demand from China and curbed supply from how sheep numbers of Australia’s Woolgrowers are again feeling the benefits of the resurgence in wool.

This week’s market finished in a positive territory after loosing ground last week. The EMI rose by 10c to 2021c. The main push was in the 19.5-22.5 microns which rose by 10 to 40c while 18.5 micron and finer had falls of 5 to 30c. Interesting to hear a comment made to me by an exporter this week that the market we now have is driven by demand from mills and not by our short supply, the key driver of course is China who import close to 80% of our clip.

The skirting sector was similar to the fleece in that 19 micron and finer lost ground by 20 to 40c, lots with 4% vegetable matter and greater were most affected. The broader types rose by 10 to 20c.

Carding wools rose by 4c for the week and Crossbreds improved with mixed results. 27 micron improved while 28 to 30 micron eased slightly. Crossbred lambs wool was again sought after by the trade.

This week saw $58.45 million spent on wool purchases and so far this season we have seen a $3.32b spent, which is a far cry from 1998 when prices hit a low average of $5.10/kg, which was well below cost of production.

We have been hearing from the exporting trade that certain Chinese mills are wanting more wool that is 110-115mm long, because they cannot get enough due to the fact that many wool producers shore early to cash in on the market and some are shearing at 6 and 8 months. These longer wools are used in the worsted section with their end use being apparel or fabric. Most of the combing wools we see on the show floor now are measuring 60-90mm.

So next week we see only Sydney and Melbourne selling with approximately 21,326 bales on offer – the smallest offering of the year. Macdonald and Co will, on Thursday the 21st June offer 1688 bales.

Can we maintain these levels or go higher? Stay tuned.

 

 

Ag Concepts Fwd Prices as at 15th June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

18

12 Dec 18

2255

2255

19

8 Aug 18

2200

2200

21

29 Aug 18

2021

2100

22

26 Sep 18

2050

2050

 


Main Buyers (this week)

1

Fox & Lillie

3298

2

Techwool

2761

3

Seatech Ind.

2530

4

Tianyu

2318

5

Michell Wool

1555

6

Modiano

1472

7

United Wool Co.

1220

8

Endeavour Wool

929

9

Kathaytex

916

 

Eastern Market Indicators (AUD cents/kg clean)

2021 cents é 10 cents compared with 7/6/2018

Northern Market Indicators (AUD cents/kg clean)

2059 cents é 2 cents compared with 7/6/2018

 

AUD/USD Currency Exchange

0.765 ê 0.0016 compared with 6/6/2018

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