Weekly Market Reports


18 May 2018

admin Macwool - Friday, May 18, 2018

WEEKLY MARKET REPORT

Week Ending 18th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S46/17

This Week

M46/17

Last Sale

S45/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2786n

2800n

2771n

+15

2354

+432

18

2437

2427

2389

+48

2219

+218

19

2204

2215

2154

+50

1942

+262

20

2143

2154

2074

+69

1628

+515

21

2128

2138

2044

+84

1499

+629

22

2115n

2114

-

+96 (M)

1441n

+674

26

1396n

1389n

1344

+52

1049

+347

28

1009

1006

999

+10

763

+246

30

703

714

703

0

570

+133

MC

1422

1448n

1397n

+25

1176

+246

MARKET HEADS TOWARDS THE STRATOSPHERE!

There was absolutely no hint of a correction this week as the wool market went on another upward trajectory similar to last series. The AWEX EMI added 52 cents to its value to smash through the 1900 cent mark to finish the sale at 1943, yet another all-time record. In US$ terms the gains were much the same - a 49 cent rise to 1462 (its highest level in 7 years) as the FRX did move around a bit, at one stage dropping to below 74.5 cents then regaining some ground to 75.25 this morning. They are now referring to this extended period of gains as a “super-cycle” that has lasted 112 weeks outdoing the raging market in the late 1980s. Most merino fleece types added 35 to 85 cents with no wools neglected (just 1% passed in) as 18 to 22 micron are now in all-time record territory in the 3 centres.

Skirtings also took a quantum leap as < 18 micron skyrocketed by 90/100 cents with the 19s and broader 60 cents to the good as buyers almost completely disregarded faults like colour, cott or VM.  Cardings took their lead from the other merino sectors as all types in this category lifted by 15 to 40 cents to have all 3 regional MCIs above 1400 cents. Crossbreds had a relatively quiet sale bar 26 micron which jumped by 50 cents, others up to 10 dearer as 26s and 28 micron re-write the record books with new highs.

No-one could have anticipated the rises of the past few sales as the growers lucky enough to have wool in the last 3 weeks have benefitted from a “buying frenzy”.  Can it keep going, when/if the correction will come and how big will that correction be??? These were hot topics of discussion at the 87th Congress of the International Wool Textile Organisation in Hong Kong this week. A plethora of items were on the table from drought and supply concerns in Australia (notably NSW) and foreseeable low levels of production for the next 2 years to the demand side - global economic conditions are very good with consumer confidence levels still very high. The recent survey of wool textile conditions from IWTO is positive right through the industry. Retail and online sales have risen in China by 8 and 22% with an ever-increasing emphasis on sustainability. Also a good session was “wool’s contribution to wellness” the benefits of wool’s impact on human skin health, especially babies. Next sale’s roster drops even lower to 32,000 bales. Where to for the market, who knows???

                   Ag Concepts Fwd Prices as at 18 May, 2018

Micron

Date

Low

High

21

6-Jun-18

2005

2005

21

29-Aug-18

1900

1955

21

24-Oct-18

1860

1860

 

     Main Buyers (this week)

1

Techwool

5407

2

Fox & Lillie

5000

3

Kathaytex Aust.

2887

4

Aust. Merino Exp

2622

5

Seatech Ind

2472

6

Tianyu

2292

7

PJ Morris

1846

8

Modiano

1769

9

Endeavour Wool

1559

Eastern Market Indicators (AUD cents/kg clean)

1943 cents é 52 cents compared with 11/05/2018

Northern Market Indicators (AUD cents/kg clean)

1995 cents é 55 cents compared with 11/05/2018

AUD/USD Currency Exchange

0.7527 é 0.0050 compared with 11/05/2018

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