17 August 2018

WEEKLY MARKET REPORT

Week Ending 17^th August, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX	This Week S07/18	This Week M07/18	Last Sale S06/18	Sydney Change	Last Year Sydney	Sydney Yearly Change
17	3007	3006	2816	+52	2282	+725
18	2682	2659	2478	+89	2201	+481
19	2465	2459	2292	+40	1924	+541
20	2376	2387	2232	+17	1724	+652
21	2341	2367	2210	+18	1668	+673
22	-	2350	2184n	+16 (M)	1602 (M)	+748 (M)
26	1507	1554	1430n	+35	1180	+327
28	944	984	871	+30	899	+45
30	709	736	648	+30	682	+27
MC	1515	1558n	1466	+14	1110	+405

BUT WAIT......THERE’S MORE??

The improving market late last week gave no real indication as to what might unfold this sale. All participants were pleased with the outcome of the opening series and a slight improvement in the market and slowly gaining momentum as sales commenced to the tune of 20 cents and maybe up to 50 cents was the most likely scenario for this week. How wrong we were!! The market exploded into action from the 1^st lot with all fleece indicators across the 3 centres skyrocketing by 100 to 160 cents smashing regional indicator and individual micron records. The final day wasn’t as frantic as just the Eastern seaboard was in action - still most microns increasing by double digits (up to 90 cents). By week’s end the AWEX EMI had escalated by 126 cents (6.33%) to 2116 easily surpassing the June record of 2073. The depreciating FRX against the US$ (down by 2.20 cents - 3.2% - on Wednesday night to 72.20) had the EMI in US$ adding 56 cents to last sale’s value to 1537. Nothing was immune to the intense competition as all microns and types, regardless of style, VM or other faults put on 130 to 200 cents as 99% of fleece was snapped up by the trade.

Room 2 wools weren’t to be outdone either. Skirtings were in hot demand like their fleece counterparts. Big opening day rises followed by steadier increases to finish the sale had all types and descriptions, regardless of faults, climb by 110 to 150 cents. Just 28 bales of the 5684 offered nationally failed to sell, a 99.4% clearance. Cardings also looked to be caught up in the frantic buying frenzy to secure quantity as LKS and CRT led the charge in this category. Fine types

< 19.5 and < 5% VM jumped by 50 to 80 cents while STNs remained solid. Crossbreds shook off last week’s negative tone to recapture those losses. Prices improved by 60 to 80 cents across all the micron ranges and categories - Fremantle selling all of its 115 bale selection!!

A great sale this week as the combination of high demand, reduced supply and favourable FRX combined to have buyers scrambling for quantity as price limitations took a back seat and buyers took no prisoners in the battle to get volume as the competition from, not only China, but Europe and India at the forefront of the bidding war as no one mentioned “panic buying” moreso “aggressive”!!. The 99 cent gain on Wednesday and the weekly rise of 126 cents were the largest daily and weekly gains since 2002 to push 18 to 24 micron prices in all 3 centres into new record territory. Quantity again is reduced next week as just the 2 East coast centres offer 29,000 bales - where to from here???

Ag Concepts Fwd Prices as at 17 August, 2018

Micron	Date	Low	High
21	26-Sep-18	2205	2280
21	12-Dec-18	2150	2150
21	13-Feb-19	2110	2110

Main Buyers (this week)

1	Techwool	5543	2	Fox & Lillie	1091	3	Aust. Merino	2562
4	Seatech Ind.	2561	5	Lempriere	2553	6	Endeavour Wool	2180
7	Kathaytex Aust.	2156	8	PJ Morris Wool	1980	9	Michell Aust.	1806

Eastern Market Indicators (AUD cents/kg clean)

2116cents é 126 cents compared with 10/8/2018

Northern Market Indicators (AUD cents/kg clean)

2163 cents é 136 cents compared with 10/8/2018

AUD/USD Currency Exchange

0.7262 ê 0.0176 compared with 10/8/2018

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Weekly Market Reports

17 August 2018

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