Weekly Market Reports


16 January 2015

admin Macwool - Friday, January 16, 2015

WEEKLY MARKET REPORT

Week Ending 16th January, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S29/14

This Week

M29/14

Last Sale

S28/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1281

1265n

1272

+9

1397

-116

18

1266

1252

1243

+23

1340

-74

19

1191

1197

1205

-14

1281

-90

20

1155

1157

1173

-18

1243

-88

21

1150

1151

1160

-10

1237

-87

22

-

1125

1143n (M)

-18 (M)

1231 (M)

-106

26

837n

834n

848n

-11

757n

+80

28

764

761

770

-6

676

+84

30

721

715

728

-7

635

+86

MC

828

841n

829

-1

812

+16

DOLLAR UP, MARKET DOWN

Currency pressure influenced the market’s downward slide this week as an almost 2 cent rise in the exchange rate (to 82.5 US cents on Tuesday night) was enough to see all 3 regional indicators and the EMI lose 4 to 5 cents. The currency shift meant the market, in US terms, actually rose by 8 cents - now 865, still a difference of nearly 200 cents with the EMI at 1054. This slight fall was met with a certain degree of resistance from growers with 12% of all fleece passed in.

As far as fleece wools are concerned the market seemed to split into two directions. A good selection of fine and super-fine types from Launceston and Goulburn (over 6,500 bales) was good enough to see the 18.5 indicator and finer post rises of 5 to 25 cents with the <40nkt lots with low mid-breaks up to 50 cents higher. On the flip-side the lower spec lots in this micron range with low nkt readings and high mid breaks were neglected and lost 30 to 40 cents. Lots broader than 19 micron had a tough sale as falls of 10 to 20 cents were the order of the day. Premiums were few and far between, a few lots from Bathurst looked 10 to 20 cents higher than their indicators with some lots from Warren and Nyngan 10 to 25 cents better - some of these part-tender and over 2% VM with one lot below 60% yield, this normally attracting up to a 50 cent discount.

It wasn’t all smooth sailing in room 2 as the better style, low VM, super-fine skirting types failed to ignite the buyer’s interest. These lots >3% VM lost 5 to 10 cents while the burrier types up to 8% caught buyer’s attention to be up to 10 cents better. Cardings and oddments took a breather from the big rises of last sale. All types and descriptions were quoted as fully firm all week but AWEX must’ve found something a bit cheaper, putting the MCI back by 1 cent to 828. Crossbreds also came under currency pressure as falls in this sector ranged from 5 to 10 cents.

Buyers put the brakes on the market as the exchange rate played its part and some types in room 2 were probably nearing their peaks. Most exporters were reporting business was a bit on the quiet side especially for fleece types. At these levels it may become easier to book up wool but don’t expect ‘boat loads to be sold’ as one buyer put it to us. Fleece prices may look to stay around this range for the immediate future with some suggesting an upwards move mid to end of February. Price levels for skirtings, cardings and crossbreds, while flat this sale, are still at or near historical highs.

Since the announcement from AWEX that the minimum bale weight will be raised 10kg to 120kg from next January, there has been plenty said and written for and against this new policy. Some interesting points are in the “letters to the editor” in this week’s edition of The Land. Again, we think this will have very little impact on most of our clients. Growers or their contractors may have to have a bit more communication with the wool-presser close to mob or shed cut-outs to ensure heavy bales aren’t pressed at the end of shearing then not to leave wool in bins that won’t make the weight.

Another point of interest is the Wool selling system review that AWI is undertaking at the moment (also mentioned in Rural Press publications). This has become a hot topic for brokers and buyers alike and not the first time that some adjustment or change to the transfer of ownership of wool has been discussed and failure to come up with a better system has been the outcome. This, again, will come under heavy scrutiny at the upcoming woolbrokers forum to be hosted by AWI in mid February. Next week will see the first national offering for 6 weeks below 50,000 bales. This smaller selection and the dearer finish in Fremantle yesterday augers well for a solid market next week. We sell last on Thursday with 900 bales on offer.

 

Ag Concepts Fwd Prices at 16 January, 2015

Micron

Date

Low

High

21

27-Jan-16

1137

1137

 

Main Buyers (This Week)

1

Techwool

7103

2

Fox & Lillie

5577

3

Chinatex

3760

4

Tianyu

3381

5

Modiano

3293

6

Lempriere

3278

7

Kathaytex (Vic)

2369

8

Aust. Merino Exp

2324

9

H Dawson Sons

1723

 

Eastern Market Indicators (AUD cents/kg clean)

1054 cents ê 5 cents compared with 9/01/2015

AUD/USD Currency Exchange

0.8207 é 0.0110  compared with 9/01/2015

Northern Market Indicators (AUD cents/kg clean)

1079 cents ê 5  cents compared with 9/01/2015

 

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