Weekly Market Reports


17 March 2017

admin Macwool - Friday, March 17, 2017

WEEKLY MARKET REPORT

Week Ending 17th March, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S37/16

This Week

M37/16

Last Sale

S36/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2318

2284n

2235

+83

1503n

+815

18

2235

2211

2143

+92

1446

+789

19

1944

1962

1902

+42

1372

+572

20

1638

1630

1638

0

1333

+305

21

1509

1503

1501

+8

1333

+176

22

1431n

1422n

1439n

-8

1315n

+116

26

1015

1023

1003

+12

971n

+44

28

756

748

756

0

830

-74

30

581

589

583

-2

703

-122

MC

1234n

1225

1231n

+3

1077

+157

Where to now?

The market took yet another step into unchartered waters as a similar pattern of weekly rises has now been in place for the past month. The EMI added another 24 cents to its value, now at 1546. The market defied the bounce back in the $US, now back to the high 76 to low 77 cent mark after falling below 75 cents 3 weeks ago. No more evidence of this when looking at the rise in the market in $US terms, up by 43 cents to 1188. Once again the price hike was led by 18.5 microns and finer, 75 to 115 cents to the good while 19s climbed 40 cents and 19.5 to 21s gaining up to 10 cents and 22s back by a similar amount. Just 114 bales of fleece were passed-in in Sydney, clearing 98%.

Skirtings also benefitted from keen competition as the majority of the selection on offer (under 19 micron and <3% VM) sky-rocketed by 70 to 100 cents. The broader and burrier types >5% VM were quoted up by 30/40 cents. Cardings had a steadier sale with both centres on the eastern seaboard adding just 3 cents while the over-heated carding market in Fremantle came back to levels of the east coast (back by 15 cents). All 3 centres are now within 10 cents of each other - 1225 to 1235. Crossbreds also looked to take a breather after their 5 week rally. Finer types (up to 26 micron) and 32s put on another 10 cents while 28/30 microns were unchanged.

The unbroken rise in the market now extends 7 weeks, back to early February, the EMI climbing 124 cents as demand far outstrips supply even with wool production about 3% higher than last season and 6% more first-hand wool being offered so far this season as brokers report very low stocks of growers holding onto wool - Sale 99 wool as we call it - as they cash in on the new price levels. Growing demand for merino has in fact been building for years. The growing use of wool against the skin in sports and outdoor wear exploded to be the main driver of renewed demand. The improved diversity of products derived from wool is also a key factor as business conditions improve and consumers become more discerning in their spending.

Last week I took umbrage over Wal Merriman’s comments about tin sheds and Dubbo and it was pleasing to see our report is more widely read than we thought. The history of “tin shedders” goes back 25 years when it was used by “the establishment” to refer to us as being somewhat of a lower standard. Wal Merriman has contacted me this week concerned that growers may get the wrong message regarding the issue of office relocations and redundancies and AWI’s actions. I was not casting an opinion or being critical of their actions, just taking offence as to why a tin shed in Dubbo would be the first thing to pop into his head when asked to respond to senate estimates. Mr Merriman has assured me that these decisions, particularly the redundancies, will save AWI substantial amounts over the next few years. I did say that scrutiny of how grower’s levies are spent should be a good thing, and I stand by that. A larger offering next week will be a good test of market strength.

Ag Concepts Fwd Prices at 17th March 2017

Micron

Date

Low

High

21

12-Apr-17

1485

1485

19

23-Aug-17

1750

1750

19

25-Oct-17

1695

1700

 

Main Buyers (This Week) 

 

1

Techwool

5916

2

Fox & Lillie

4640

3

Lempriere

3897

4

Chinatex

3471

5

Aust Merino Exp.

3239

6

PJ Morris

2228

7

Tianyu Wool

2227

8

Michell Aust.

1955

9

Modiano

1593

  

Eastern Market Indicators (AUD cents/kg clean)

1546 cents é 24 cents compared with 10/03//2017

Northern Market Indicators (AUD cents/kg clean)

1636 cents é 31 cents compared with 10/03/2017

AUD/USD Currency Exchange

0.7685 é 0.0161  compared with 10/03/2017

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