Weekly Market Reports


16 December 2016

admin Macwool - Friday, December 16, 2016

WEEKLY MARKET REPORT

Week Ending 16th December, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S24/16

This Week

M24/16

Last Sale

S23/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1788

1753n

1767

+21

1530

+258

18

1732

1714

1717

+15

1508

+224

19

1624

1620

1608

+16

1430

+194

20

1496

1485

1481

+15

1359

+137

21

1415

1410

1401

+14

1350

+65

22

1381n

1374n

1367n

+14

1338n

+43

26

939

950n

954n

-15

1000n

-61

28

658

666

681

-23

844

-186

30

598

605n

600

-2

797

-199

MC

1132n

1134

1139n

-7

1117

+15

A SOLID FINISH. MERRY CHRISTMAS & A HAPPY NEW YEAR!!

More than 55,000 bales were offered this week - the largest national total since January and the final sale of the 2016 calendar year. Unlike in recent weeks where the market has been subject to large price increases or corrections, Wk 24 saw a gradual increase in prices across all centres on all selling days, although most price increases were experienced during Wednesday’s selling. After steady price rises throughout the sale all merino sectors generally finished the week 10 to 20 cents above levels recorded in the previous sale. A pleasing aspect were the culprits (off style, lower types) that dragged the market back last sale which were in higher demand than their more fancied counterparts, dearer by 40 cents.

The skirting market performed better than the fleece in Sydney and Fremantle (on average 20 cents dearer for the week) while Melbourne was firm unchanged compared to the previous week. It was the largest offering of Crossbreds in 2 years and 34% larger than last week. Prices drifted lower and poorly prepared lots, in particular, were neglected then increasingly discounted as the sale progressed. Prices were generally discounted between 5 and 20 cents with the coarser end least affected. The oddment market was one of small mixed movements. Small price rises and increases saw an average decrease of 5 cents in the Eastern Merino Carding Indicators and a 2 cent increase in the Western Region, all 3 centres MCIs now within 4 cents of each other - 1131 to 1134.

A good finish to the year considering the increased volume over the past 4 sales contributing to a 55,000 bale increase in wool offered to date YOY. The continued good demand for merino combing wool and the favourable exchange rate helped the merino sector finish on a good note. The same can’t be said for crossbreds. They lurch from bad to worse with several broad burry types virtually neglected. Any sign of improvement seems a long way off.    

The EMI finished the 2016 calendar year 90 cents higher (+7.1% YOY) at 1355 cents - the highest ‘calendar year’ closing figure on record. Turnover for 2016 was just over 2.5 billion dollars (AUD) - the largest amount since 2002 (2.9 billion during that year when volume was 62% higher). Average dollars per bale in 2016 (excl. NZ) was $1478, the highest on the AWEX database (since ’97).

Sales resume on the week beginning the 9th January, 2017, with selling in Sydney, Melbourne and Fremantle with an expected catalogue of 55,000 bales. Merry Christmas and a safe and Happy New Year to all our clients!

 

Ag Concepts Fwd Prices at 16 December 2016

Micron

Date

Low

High

21

25-Jan-17

1400

1400

21

15-Feb-17

1410

1410

19

12-Apr-17

1575

1575

 

Main Buyers (This Week) 

1

Techwool

9639

2

Fox & Lillie

4449

3

Tianyu

4234

4

Modiano

3169

5

PJ Morris

3130

6

Kathaytex (VIC)

2903

7

Lempriere (Aust)

2779

8

Aust. Merino Exp

2762

9

Michell Aust

2653

  

Eastern Market Indicators (AUD cents/kg clean)

1355 cents é 6 cents compared with 9/12/2016

Northern Market Indicators (AUD cents/kg clean)

1412 cents é 9 cents compared with 9/12/2016

AUD/USD Currency Exchange

0.7422 ê 0.0080  compared with 9/12/2016

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