Weekly Market Reports


17 November 2017

admin Macwool - Friday, November 17, 2017

WEEKLY MARKET REPORT

Week Ending 17th November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S20/17

This Week

M20/17

Last Sale

S19/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2494

2465

2488

+6

1667

+827

18

2303

2306

2283

+20

1636

+667

19

2009

2005

2005

+4

1570

+439

20

1783

1765

1764

+19

1451

+332

21

1647

1634

1645

+2

1383

+264

22

1571n

1548n

1562n

+9

1368n

+203

26

1075

1065n

1103

-28

985n

+90

28

768

773

815

-47

668

+100

30

584

603

616

-32

560

+24

MC

1382n

1389

1348

+34

1103n

+279

 DON’S IN, MARKET STEADY!

The market took a breather this sale as it looked pretty hard to figure out which way buyers were pushing the market. By week’s end the market had edged a touch higher by 2 cents to 1683. The weaker FRX didn’t seem to help the market but the weaker A$ resulted in the market falling by 13 cents in $US terms to 1279 as the $A moved lower by over 1 cent. The market opened on a slightly dearer note but tailed off somewhat by Thursday to have all merino indicators edging just into positive territory. Some microns did add 15 to 25 cents -16.5s, 17.5 to 18.5 and 19 - while all others progressed by up to 10 cents. The less stylish selection than what had been offered over the past few sales being a factor in price movements. Even with the steadier market growers were happy to take the money as the clearance rate was 99% for the fleece offering in Sydney.

Skirtings also had an up and down sale as a strong opening led to a softer finish to the week. Finer types < 19 micron, below 5% VM ended the sale with their noses in front (up by about 10 cents) while the broader/burrier types held their levels from the past few sales. Growers are still very happy with these incredible levels for skirtings as only 18 bales were passed-in, 99.1% sold. Cardings continued to re-write the record books as the 3 MCIs all rose. Sydney (1382) and Fremantle (1366) added 35 to 45 cents (all types in this sector posted 30 to 50 cents rises) while Melbourne rose by 12 cents to 1389. We had a line of LKS from Condobolin make 822 cents!! If we see even small increases next week the MCIs on the east coast could crack an amazing 1400 cent barrier. It was only 2 years ago that 21s were just 1200 cents while 18 micron and finer ranged from 1400 to just 1460 for 16.5s!! Just when we thought crossbreds were well and truly on the way to recovery, they couldn’t maintain their meteoric rises of the past 2 sales as losses ranged from 10 cents (32 micron) to 50 cents for 28s, these big falls contributing to the small movements in regional indicators. 

A week of consolidation as movements in all microns of merino fleece/skirtings were minimal as cardings kept rocketing away and Crossbreds lost ground. With just over 50,000 bales on offer this sale was the largest since the opening sale after the winter recess (August) with Melbourne selling 56% of the total, its biggest catalogue since January. The turnover this sale topped $96.77m - the highest weekly total since 2002 when 74,500 bales were offered. The easing of the market on the east coast on the final day of selling could be a sign that the peak has been reached (time will tell) but an encouraging factor was the Fremantle market finishing slightly dearer which can be a good pointer for things to come next sale under another big selection of 44,000 bales - we wait with baited breath for the outcome.

Good news to come out of the much anticipated AWI AGM held in Sydney today. Don has succeeded in his bid to be voted onto the board of directors after a month of lobbying eligible voters. His vote count (136,384) was only 2nd to one on the board’s incumbents, Collette Garnsey with a total of 205, 584. The final position that was up for re-election was won by James Morgan with 135,892 with Paul Cocking missing out with 128,608 votes. The new board met immediately after counting and voted Wally Merriman to retain his role as chairman.    

 Concepts Fwd Prices at 17 November 2017

Micron

Date

Low

High

21

24-Apr-18

1560

1560

21

23-May-18

1570

1570

Main Buyers (this week)

1

Techwool

8682

2

Seatech Ind.

5233

3

Tianyu Wool

4238

4

Fox & Lillie

4155

5

Australian Merino

3387

6

PJ Morris

2687

7

Modiano

2458

8

Lempriere

1691

9

Kathaytex Aust.

1675

  

Eastern Market Indicators (AUD cents/kg clean)

1683 cents é 2 cents compared with 10/11/2017

Northern Market Indicators (AUD cents/kg clean)

1776 cents é 9 cents compared with 10/11/2017

AUD/USD Currency Exchange

0.7600 ê 0.0089 compared with 10/11/2017

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