Weekly Market Reports


18 January 2019

admin Macwool - Friday, January 18, 2019

WEEKLY MARKET REPORT 

Week Ending 18th January, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S29/18

This Week

M29/18

Last Sale

S28/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2523

2508

2557n

-34

2672

-149

18

2407

2438

2435

-28

2374

+33

19

2304

2286

2296

+8

2137

+167

20

2256

2234

2240

+16

1942

+314

21

2225

2233

2200

+25

1786

+439

22

-

2202n

2204 (M)

-2 (M)

1699 (M)

+503 (M)

26

1339n

1341

1259n

+80

1128

+211

28

941n

954

886n

+55

808

+133

30

739n

719

706 (M)

+13 (M)

594 (M)

+145 (M)

MC

1202

1172n

1179

+23

1513n

-311

BUYERS ABSORB BIG VOLUME!

Despite the largest national offering of the season to date (51,700 bales) the market absorbed the excess volume easier than most pundits thought. As far as the merino fleece sector was concerned, it was a sale of contrasts as finer types        <18.5 fell by 10 to 35 cents due mainly to the sub-standard quality of the offering feeling the effects of the drought, bar the lots with the “right specs” that were 25 to 120 cents dearer than their indicators. The 19s and coarser improved by 10 to 25 cents. The AWEX EMI gained 13 cents to 1923 helped along by the rises in fine XBs and merino cardings and skirtings.

Skirtings had a solid sale as all types and descriptions were 10 to 20 cents to the good. Cardings kept their momentum going from last sale as all types added 15 to 30 cents to their previous values to put the MCI in Sydney at 1202 cents. Crossbreds also had another stellar sale to follow on from last series as 28s and finer climbed by 50/80 cents.

Speculation of supply concerns is all the talk on the showfloor, too much in these opening 2 sales and a sharp decline for the next 4 weeks. As we stand at the present time there has been 175,000 bales less offered than the same time last season, a 17% decline or about 4 sales!! A telling factor of the 2 sales since the new year was the re-emerging of one of the bigger local trading companies taking on the Chinese indent buyers to see price levels in the medium types benefit from an increase in competition as price determination in the finer sector is now truly driven by poor quality and a rise in volume due to the drought.

The fine XB sector (25 to 28 micron) has had the largest increases of any type recently, 100 cents. The main reason is Australia is still the primary source of “good white” wools in this category and mills can keep combing machinery running at similar settings to full length merino fleece types. At the other end of the market carding wools look to be back in favour as well. European retailers are reporting improving winter sales after a slow start to the season. Hopefully the recent blast of cold weather can keep sales ticking along. Next week has quantities falling back to 41,000 bales with all the talk being a solid to dearer market.

Ag Concepts Fwd Prices as at 18 January 2019

Micron

Date

Low

High

21

12-Jun-19

2150

2160

Main Buyers (This Week)

1

Techwool

5956

2

Seatech Ind.

4106

3

Fox & Lillie

4097

4

Aust. Merino

3344

5

Tianyu

3242

6

PJ Morris

3242

Eastern Market Indicators (AUD cents/kg clean)

1923 cents é 13 cents compared with 11/01/2019

Northern Market Indicators (AUD cents/kg clean)

1960 cents é 12 cents compared with 11/01/2019

AUD/USD Currency Exchange

0.7151 ê 0.0028 compared with 11/01/2019

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