Weekly Market Reports


17 January 2020

admin Macwool - Friday, January 17, 2020

 WEEKLY MARKET REPORT 

Week Ending 17th January, 2020

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S29/19

This Week

M2919

Last Sale

S25/19

Sydney

Change

Last Year (Wk24)

Sydney

Sydney Yearly

Change

17

2122

2082

2005

+117

2523

-401

18

2005

1930

1907

+98

2407

-402

19

1909

1838

1818

+91

2304

-395

20

1878

1803

1792

+86

2256

-378

21 1870 1783 1783n +87 2225 -355
26 1195n 1166 1180n +15 1339 -144

28

914n

865

914n

0

941n

-27

30

-

711

729 (M)

-18 (M)

719 (M)

-8 (M)

MC

1123n

1089n

1071n

+52

1202

-79

NEW YEAR BUT SAME RESULT!

As has been the case for a number of years now the market started the new year with a bang. After last week’s 5% rise in the South African market talk on the showfloor was of a similar scenario. The chatter was spot on as all merino microns added 100 to 120 cents on Tuesday on the Eastern Seaboard. On Wednesday, as Fremantle came on line, Sydney was a fraction cheaper (10 cents) Melbourne mixed and after an explosive start Fremantle could only add 30/40 cents to their pre-Christmas values as talk of a correction was common. The big downward price adjustment came on Thursday with Sydney not selling with the other 2 centres as all microns lost 25 to 100 cents. After the wild fluctuations the AWEX EMI did post a 51 cent rise to 1609.

Skirtings also benefitted from the initial jump in the market to have this sector 70/90 cents to the good with cardings ranging from 40 to 70 cents higher. The crossbred sector couldn’t go with their merino counterparts and added just 10 cents to their values. With the market’s jump the EMI is equal to its spring peak in late September (1609) and just the 2nd occasion since August that 1600 cents has been achieved. Even though the market rose there are big price discrepancies between the 3 centres. As Sydney escaped the big closing falls on Thursday we are well ahead of Melbourne’s levels (78 cents on 18s and 19 to 21s, 40 cents for 16.5 to 17.5 and 18.5s.) This could signal more price reductions next sale as growers rushed wool into next week after Tuesdays jump to try and capture the rises pushing the roster to 59,900 bales, a 14% (8,100 bales) increase since Monday. It will be the largest sale since April 2018. This opening sale (52,200 bales) was the largest since the corresponding sale last year. Buyers are somewhat perplexed as to why growers continue to rush wool onto the market after big rises pushing volumes to levels where finances aren’t enough to buy all the wool on offer at competitive levels. If the rises weren’t so large, like before Christmas and late October, we could avoid the situation of big rises leading to large offerings, then buyers virtually running out of money to buy all the available wool and the market losing all the previous gains. Buyers seem to think that volumes over 45,000/sale becomes a bridge too far. That doesn’t augur well for next week and then Chinese New Year the following sale. Some exporters did write some business last night - enough to steady the market next week is anyone’s guess.

Southern Aurora Fwd Prices              

Micron

Date

Low

21

February 20

1760

Main Buyers (This Week)

1

Techwool

8058

2

Tianyu Wool

3433

3

Aust. Merino

3410

4

Kathaytex

2839

5

Fox & Lillie

2783

6

Michell Wool

2498


Eastern Market Indicators (AUD cents/kg clean)

1609 cents é 51 cents compared with 20/12/2019


Northern Market Indicators (AUD cents/kg clean)

1678 cents é 79 cents compared with 20/12/2019

   

AUD/USD Currency Exchange

0.6907 é 0.0062  compared with 20/12/2019

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