Weekly Market Reports


16 October 2015

admin Macwool - Friday, October 16, 2015

WEEKLY MARKET REPORT

Week Ending 16th October, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S16/15

This Week

M16/15

Last Sale

S15/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1419

1385

1442n

-23

1305

+114

18

1401

1373

1429n

-28

1266

+135

19

1286

1283

1314n

-28

1191

+95

20

1229

1227

1248n

-19

1159

+70

21

1216

1213

1245n

-29

1151n

+65

22

1207n

1203

1230n

-23

1146n

+61

26

1013n

998n

1064n

-51

816n

+197

28

826

825

854

-28

680

+146

30

781

779

809

-28

653

+128

MC

1060

1046

1073n

-13

786

+274

YET ANOTHER BAD WEEK!

Another poor week for the wool market as its slide continued on unabated. The run of losses now stretches for 13 sale days out of 14 dating back to early September (Sale 11). In that time the EMI has fallen 97 cents - 1266 to 1169 (8%). In US terms the losses are nowhere near as dramatic - a 23 cent fall (about 3.5%) - this due to the wild swings the exchange rate has been on - a range of 0.695 cents US to this week’s highs of 0.735 cents. Fleece losses were across the board as medium types broader than 19.5 gave up 20 to 30 cents. The only indicators to fare better were 16.5s and finer (back by 13 cents) but plenty of these super-fine types in the “spinners” category and better that measured over 40nkts commanded 100+ cent premiums over their less stylish types - some comfort for the superfine grower that can present the right article. Volumes of good strength wools (above 40 nkt) are diminishing. This sale just 21% of adult fleece wool had an nkt reading above 40, the least amount offered for nearly 2 years. All other fine microns that weren’t up to scratch between 19 and 17 lost 25 to 40 cents with some non-mulesed lots gaining good premiums over their mulesed counterparts.

The falling price pattern was evident in the secondary room as well. The excellent selection of low VM superfine types wasn’t enough to stop the market from sliding as 5% < VM (finer than 18 micron) fell by 20 cents as the broader burrier types, much less in volume, held their ground. Despite this continuing slide, prices are still good. A lot of BKN from Coonamble with 8% VM made 598 cents, 2 lots with 2.5% < made around 790 and a lot from Cobar with 4.5% VM made 670 cents. Cardings continued their slide with the 1100 cent level now looking a long way off. The MCI lost 13 cents, to 1060, the falls in the other 2 centres 25 to 35 cents, their indicators 1046 and 1049. Locks look to be the main offender again as they fell 20 cents while CRS drifted by 10 cents and stains remained unchanged. As we had feared earlier the rising volume of crossbred wool coupled with the rising exchange rate has dealt this sector a savage blow over the past few weeks. Unfortunately this sale was no different as losses were heavy in all microns bar 32 and broader, back by 13 cents, as all others lost 30 to 50 cents. The crossbred selection now making up 20% of the eastern seaboard offering but, as the above table illustrates, still well ahead of this time last year. We sold 2 stylish clips from Wellington and Gollan that both averaged over $1,100/bale.

Growers look to be resisting some of the price levels, especially in the fleece sector, as prices for medium types -19.5 and coarser - fall to around 1200 cents clean. There was a big volume of withdrawn wool this sale, the largest since February with 11.5% of all fleece passed in this week. The original national roster of 46,000 bales failed to eventuate, as just 40,000 were offered with 10% passed-in. Some growers are cashing in their skirtings and oddments as price levels are still at historical highs and hanging onto their fleece in the hope of a recovery in prices soon.

Ram sales continue on in earnest this week. Some local results include: Wyuna at Armatree - top price of $3,000 to average $1,260; down at Wellington, Mumblebone cleared all 120 rams for a top price of $7,500 to average $1,825, up by $200 on last year’s average; other noted Wellington stud, Allendale, cleared 95% to top at $4,400 for an average of $1,400; Cassilis Park from Cassilis topped out at $1,200 to average $965; moving down south Merrignee (at Boorowa) achieved a top price of $3,600 averaging $1,270 while neighbours, Grassy Creek, sold 95% to average $1,980 with a top price of $4,500; and Calga/Uardry Dohne Stud from Coonamble held their sale at Wanganella with a top price of $7,000 to average $1,390. Next week sees us first up on Wednesday.

Hard to see the market stage any sort of recovery unfortunately!

           

Eastern Market Indicators (AUD cents/kg clean)

1169 cents ê 26 cents compared with 9/10/2015

 

Northern Market Indicators (AUD cents/kg clean)

1198 cents ê 25 cents compared with 9/10/2015

 

AUD/USD Currency Exchange

0.7351 é 0.0158  compared with 9/10/2015

 

Main Buyers (This Week)

1

Techwool

4672

2

Global Wool Exp.

3461

3

Fox & Lillee

3339

4

Modiano (Aust)

3131

5

Lempriere

2557

6

Australian Merino

2339

7

Tianyu Wool

2020

8

Chinatex

1928

9

PJ Morris

1730


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