Weekly Market Reports


15 May 2015

admin Macwool - Friday, May 15, 2015

WEEKLY MARKET REPORT

Week Ending 15th May, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S46/14

This Week

M46/14

Last Sale

S45/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1486

1481

1503

-17

1268

+218

18

1446

1437

1453

-7

1196

+250

19

1381

1377

1408

-27

1153

+228

20

1329

1308

1348

-19

1132

+197

21

1301

1295

1323

-22

1123

+178

22

1253

1251

1274

-21

1110n

+143

26

1018

1005n

1006

+12

745n

+273

28

896

878

886

+10

661

+235

30

830

822

826

+4

629

+201

MC

1055

1071

1036

+19

786

+269

RISING DOLLAR COULD SPELL TROUBLE

The market did what everyone feared, a slight correction after last sale’s big climb. The drop was minute - a 6 cent fall in the EMI to 1235 (0.4%) to be precise. The opening day saw the fleece indicators in buyers’ favour on the East Coast but Fremantle bucked that trend. Some of their indicators were up by 15 cents giving some hope that a fall was still a few weeks away.  The opening day’s dearer trend in Room 2 helped the regional indicators lift 2 to 3 cents in Sydney and Melbourne but a final day fall saw all microns lose ground. Most microns fell by similar amounts, 10 to 20 cents, as the pass-in rate lifted to an average of 6% of fleece wools across the 3 centres. Premiums were hard to come by but 2 lots from Tottenham looked 10 to 20 cents better than their indicators with some fine/tender lots from Coolah attracting very little discount.

Skirtings hung on better than their fleece counterparts. An opening day rally was negated by a fall on the final day as medium types <5%VM gave up 10 cents while finer lots and the burrier types >10% finished the sale in buyers’ favour. An opening day surge in cardings was also caught up in the falls on Thursday. All types opened 20 to 40 cents better only to see stains give up 10 to 20 cents in the final session. The MCIs still managed 20 cent rises on the east coast, now 1055 and 1071. Great levels for these types as 40 and 50mm LMS wool from Baradine and Yass made 916 and 1056 and LKS from Coonamble reached 687 cents. Crossbreds defied the spike in the A$ to hold their ground after an opening day’s rise. Finer microns, 25 to 28, posted a 10 cent rise while 30s and broader were quoted up to 5 cents higher.

The run of rises that stretched for 13 days came to an end on Thursday. From the end of March to Wednesday the EMI had jumped 149 cents - 1094 to 1243 (13.2%) eclipsed only by the 15 day rise in mid 2011. The sudden lift in the exchange rate from 79.75 to 81.25 cents on Wednesday night provided the impetus for the pull-back in prices. Worry over the slowdown in the US economy, as their stock market falls thus weakening their $ to a four month low, has sent other currencies higher. Our $ has been as low as 75 cents in mid March and mid April but, until the US$ and Wall St recovers some lost ground, other global currencies will stay high and struggle to fall.

The annual IWTO Congress will be held in Zhangjiagang, China from next Monday to Wednesday. Now in its 84th year, this will be just the 4th Congress to be held in China and co-organised by the China Wool Textile Association with participants from growers through to retailers and other organisations in the wool pipeline with the aim to build a professional and sustainable industry. 43,000 bales will up next week. Hopefully the market won’t fall away much further.

Ag Concepts Fwd Prices at 15 May

Micron

Date

Low

High

21

24-Jun-15

1230

1260

21

26-Aug-15

1225

1225

21

21-Oct-15

1200

1200

19

9-Dec-15

1300

1300

 

Main Buyers (This Week)

1

Chinatex

8956

2

Techwool

6828

3

Lempriere

3631

4

Fox and Lillie

3594

5

Australian Merino

2853

6

PJ Morris

2294

7

Kathaytex (Vic)

1377

8

Modiano (Aust)

1094

9

Kathaytex Aust.

933

 

Eastern Market Indicators (AUD cents/kg clean)

1235 cents ê 6 cents compared with 8/05/2015

 

Northern Market Indicators (AUD cents/kg clean)

1269 cents ê 4 cents compared with 8/05/2015

 

AUD/USD Currency Exchange

0.8127 é 0.0148 compared with 8/05/2015

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