Weekly Market Reports


16 November 2018

admin Macwool - Friday, November 16, 2018

WEEKLY MARKET REPORT

Week Ending 16th November, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S20/18

This Week

M20/18

Last Sale

S19/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2445

2403

2495

-50

2494

-49

18

2278

2248

2318

-40

2303

-25

19

2104

2100

2109

-5

2009

+95

20

2057

2071

2050

+7

1783

+274

21

2048

2058

2043

+5

1647

+401

22

-

2085n

-

-15 (M)

1548n (M)

+537 (M)

26

1140n

1126

1143n

-3

1075

+65

28

760

765

745n

+15

768

-8

30

663n

684

636n

+27

584

+79

MC

1100

1114n

1020

+80

1382n

-282

WOOLGROWERS VOTE FOR 1.5%

The recent Woolpoll voting results have finally been released after the closest vote on record. Like most political elections, preferences had to come into play to determine a winner as first-hand results were too close to call between the 2 favoured options, 1.5% and 2%. After the final tally of preferences the 1.5% levy won by 52.5% over 47.5% for the current rate of 2% to be retained. Despite the call for the levy to be held at 2% from AWI, various industry groups lobbied for the lower option despite the forecasted less revenue due to less wool being sold and with less finances coming in putting some projects at risk. The new levy will commence from July 2019.      

For just the 4th time in 13 weeks - since the big rise in mid August - the AWEX EMI took a turn for the better, with a modest 5 cent gain to 1781. Talk of a recovery or the market bottoming out has been in the wings for 2-3 sales now but only came to fruition this sale due mainly to a buoyant XB and carding market. The large volume of dusty, fine and tender types < 19 micron saw these wools lose 35 to 55 cents whereas the odd lot with “good specs” gained 40 to 60 cents. Broader microns managed to hold their ground to finish in sellers’ favour. A much higher acceptance of these current prices by growers saw just 6% of the Sydney fleece catalogue passed-in.

The big movers in the market were in Room 2. Skirtings had an up and down sale as the opening day’s losses of 20 to 30 cents were regained in the closing session to see this sector finish unchanged to sellers’ favour. The big mover was the carding sector. After getting hammered since the record peak of 1563 cents in mid September to last sale’s low of 1020 (a 543 cent collapse – 35%) the 3 centres averaged a 90 cent gain as all types in this sector added 50 to 150 cents to their previous values. Crossbreds were also buoyed by the renewed buyer competition increasing by up to 30 cents.

Could this finally be the bottom of this price cycle? It may well be if all other sectors follow the lead of cardings as a Chinese delegation was here this week and were keen to purchase carding types having been out of the market for several weeks. Also of note was the lift in prices of inferior fleece types by 40 cents late in the final session. The market in Euro terms gained 1.1% even with the ascendency in this currency by 3.5% over the past 3 weeks indicating increased support for the better European types despite China’s absence from the market. Many “good judges” are predicting a dearer market through to Christmas - hope their on the money!!

Ag Concepts Fwd Prices at 16 November 2018

Micron

Date

Low

High

21

5-Dec-18

1990

1990

 
21

22-May-19

1910

1910

Main Buyers (This Week)

1

Techwool

3842

2

Tianyu Wool

3232

3

Endeavour Wool

2641

4

Fox & Lillie

2420

5

Seatech Ind.

2367

6

Aust. Merino

2252

7

PJ Morris

1881

8

Vic. Wool Proc.

1012

9

Kathaytex

825

Eastern Market Indicators (AUD cents/kg clean)

1781 cents é 5 cents compared with 9/11/2018

Northern Market Indicators (AUD cents/kg clean)

1819 cents é 10 cents compared with 9/11/2018

AUD/USD Currency Exchange

0.7273 ê 0.0005 compared with 9/11/2018

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