Weekly Market Reports


17 August 2018

admin Macwool - Friday, August 17, 2018

WEEKLY MARKET REPORT

Week Ending 17th 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 1st 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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