Weekly Market Reports


15 November 2019

admin Macwool - Friday, November 15, 2019

 WEEKLY MARKET REPORT 

Week Ending 15th November, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S20/19

This Week

M20/19

Last Sale

S19/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2027

1984

1978

+49

2445

-418

18

1920

1894

1875

+45

2278

-358

19

1818

1811

1776

+42

2104

-286

20

1773

1763

1725

+48

2057

-216

21 1763n 1738 1713n +50 2048 -285
26 1204n 1215 1204n 0 1140n +64

28

910n

918

919n

-9

760

+150

30

-

724

728n (M)

-4 (M)

684 (M)

+40 (M)

MC

1053n

1062n

1055n

-2

1100

-47

JUST LIKE A BROKEN RECORD!!

The wool market continues to do the same thing, up and down, this time over the very short period of this week’s sale as the sale started with a bang and lost ground on the final day. Since September the pattern has been 2 or 3 days of gains followed by losses over the same period of time. Again it was a case of “rising too high too quickly” as most fleece types ascended by 45 to 65 cents only to lose up to 20 cents in the last session. By week’s end the AWEX EMI had lifted by 19 cents to 1574 with just a 2 cent rise in US$ terms to 1070 as the A$ lost ground to all major currencies to fall below 68 cents with all microns adding 35 to 50 cents across the merino fleece spectrum. Skirtings fared better than their fleece counterparts as the opening day’s lifts were maintained to see a 30/40 cent gain for all types with the < 17.5, low VM lots 40 to 60 cents to the good. Cardings recorded very little change as LKS were in buyers’ favour to have the MCI give up 2 cents to 1053. Crossbreds also had a flat sale as > 27 micron fell by 10 cents with all other types firm.

The market is like a broken record doing the same thing week after week but the volatility of price shifts has narrowed. In August/September the shift was 100 cents or more but the past 6 sales has seen the EMI move either way 25 to 40 cents bar one rise over 2 weeks that added 75 cents, this narrowing price adjustment much more palatable for buyers.

Volatility remains the bugbear of all in the processing pipeline. Exporters’ margins are savaged by the magnitude of the daily price shifts leading to a conservative “just in time” approach if they can’t cover their forward risk. This, in turn, reduces efficiency in the pipeline and disrupts a smooth flow of product which can constrict consumer demand.

Australian buying houses led the way followed by Chinese indent buyers and selected top-makers but, as the opening day’s levels rose beyond downstream users’ comfort zone, the inevitable pull back in price saw support drift on the final day seemingly now making the 2/3 weekly changes closer to erratic daily swings of price.

The AWI AGM will be held next Friday. Voting closes for the 3 spots on the board next Wednesday at 10am. Postal votes should be in today’s mail with online voting open up until 10am, Wednesday. The AGM will be webcast, go to www.wool.com/about-awi/how-we-consult/annual-reporting/ to watch. The scheduled 40,000 bales rostered for next week and the softer market on Thursday might put prices under pressure to hold their levels.

Southern Aurora Fwd Prices              

Micron

Date

Low

21

December 19

1740

Main Buyers (This Week)

1

Techwool

5068

2

Fox & Lillie

3970

3

Endeavour Wool

2980

4

PJ Morris

2632

5

Aust. Merino

2484

6

Tianyu Wool

2111


Eastern Market Indicators (AUD cents/kg clean)

1574 cents é 19 cents compared with 08/11/2019


Northern Market Indicators (AUD cents/kg clean)

1610 cents é 27 cents compared with 08/11/2019

   

AUD/USD Currency Exchange

0.6798 ê 0.0067  compared with 08/11/2019

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