18 April 2019

WEEKLY MARKET REPORT

Week Ending 18th April, 2019

AWEX Northern Micron Indices Comparison

AWEX INDEX	This Week S42/18	This Week M42/18	Last Sale S41/18	Sydney Change	Last Year Sydney	Sydney Yearly Change
17	2483	2358n	2497	-14	2768n	-285
18	2404	2355	2410	-6	2355	+49
19	2291	2291	2293	-2	2088	+203
20	2264n	2255	2272	-8	1981	+283
21	-	2238	2238n (M)	0 (M)	1951 (M)	+287 (M)
26	1450n	1501n	-	+41 (M)	1247	+203
28	1244	1266	1205n	+39	926	+318
30	-	976	-	-22 (M)	688 (M)	+288 (M)
MC	1084	1072n	1096	-12	1368n	-284

MARKET FINALLY SETTLES!

The wool sale was held at the Royal Easter Show this week and had an overall positive tone to finish this run of sales before the 1 week recess for Easter and ANZAC Day. The AWEX EMI posted a 7 cent increase due mainly to Melbourne’s momentum, up 11 cents, compared to the 1 cent rise in Sydney. The Sydney market opened on a solid note only to see sub 18 micron fade late in the final session to end the sale 5 to 15 cents cheaper and broader types either side of unchanged by 5 cents. Again buying strategies were a mirror image of previous sales - good types with the right specs were in hot demand as the vast quantity of poorer types were cheaper dragging the indicators lower.

Skirtings made little inroads into their run of falls over the past month as the best style lots lifted by 10/20 cents while all other types were firm. The carding market continued to fall with LKS losing 15 to 30 cents as all other descriptions remained unchanged. The appetite for XB wool seems insatiable at the moment as more records were set for 28/30 microns - rises ranged from 20 to 40 cents.

The market finally put the brakes on the long run of falls, 7 weeks and 91 cents, the longest falling run since late 2003. While this run of falls is disappointing, it was preceded by an 8 week run of increases that started in the final sale of 2018 and the gain was 178 cents, so still an indicator that is 87 cents to the good since December.

More news to come out of the IWTO Conference: Giovanni Schneider (MD of the Schneider Group) gave an update of the wool textile industry in Italy. Wool makes up just 1% of global consumption of fibres. Italy accounted for 11% of fibre used in their textile industry (men’s knitwear). Conditions in the worsted weaving business were difficult with manufacturers and retailers holding excess stocks of suits and a major challenge for the industry worldwide was the ever increasing demand from consumers for sustainable products. Another presentation on the British wool market highlighted the low prices for > 32 micron wool which are now very competitive compared to nylon. Brexit would not affect the price of wool but the British Wool Marketing Board has started a new marketing campaign to lift grower returns. Wool sales recommence on 1^st May.

Main Buyers (This Week)

1

Techwool

4123

2
Tianyu Wool
4039

3

Fox & Lillie

3143

4
Aust. Merino
3031

5
Seatech Ind.
2824

6

Endeavour Wool

2711

Eastern Market Indicators (AUD cents/kg clean)

1943 cents é 7 cents compared with 12/04/2019

Northern Market Indicators (AUD cents/kg clean)

1979cents é 1 cent compared with 12/04/2019

AUD/USD Currency Exchange

0.7193 é 0.0030 compared with 12/04/2019

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Weekly Market Reports

18 April 2019

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