Weekly Market Reports


18 November 2016

admin Macwool - Friday, November 18, 2016

WEEKLY MARKET REPORT

Week Ending 18th November, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S20/16

This Week

M20/16

Last Sale

S19/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1667

1648n

1626

+41

1518

+149

18

1636

1626

1610

+26

1493

+143

19

1570

1569

1530

+40

1404

+166

20

1451

1451

1420

+31

1338

+113

21

1383

1373

1366

+17

1325

+58

22

1368n

1353

1348n

+20

1310n

+58

26

985n

990n

996n

-11

1030

-45

28

668

673

674

-6

876

-208

30

560

558

555

+5

831

-271

MC

1103n

1103

1092

+11

1069

+34

 

MARKET RECOVERS MOST LOSSES OF PAST TWO WEEKS

Last Thursday’s turn around in the market flowed through to this week’s sale as solid gains were made over the course of the sale. The benchmark AWEX EMI climbed back over the 1300 cent mark to 1314 - a 24 cent rise. In US$ terms it was a slight reversal of 6 cents to 983, this due to the exchange rate falling to below 74.50 on Thursday. All types across all microns benefitted from the renewed competitive tension in the sale rooms. Finer indicators led the charge, <20 micron up by 25 to 40 cents with 21s and broader 20 cents to the good. Once again lots with the right specs were keenly sought after with premiums up to 100 cents higher than the indicators even with >2.5% VM, colour and mixed length. Our best catalogue in months resulted in 91% (94 lots) of our fleece making over 1000 cents, just 12 lots below that.

The skirting sector faired the best of any sector. Solid gains over both selling days saw all types regardless of VM, style or micron jumping 50 to 80 cents. We sold 16 lots of “BKN” that made over 1000 cents - fantastic money!!  Cardings also shook off last sale’s falls, all 3 MCIs back above 1100 cents as all types posted 5 to 15 cent gains. Crossbreds had a mixed sale. The misery continued on for the finer types (<28 losing 5 to 10 cents) while 30s and broader stopped the rot for the moment adding 5 to 15 cents. The eastern seaboard offering was 26% crossbred, 11% passed-in.    

A stunning about-face for the market. The 3 weeks of 50,000 bales didn’t eventuate as the offerings dropped back to identical volumes of 47,000. The lower than anticipated catalogues and favourable exchange rates (<2.4%) certainly helped as did reports of practically zero stocks of greasy merino wool globally. The lift in the market saw just 66 bales of FLC and 44 bales of SKTS passed-in in Sydney. Futures trading ramped up and lock-in prices for Jan/Feb are 1405, 25 cents higher than the physical price indicating a very ‘solid to dearer’ market next week.

The AGM  for AWI was held this morning  with confirmation that following a 2 phase, 2 year program of consultation, review and discussion of the wool selling system, the Wool Exchange Portal Working Group has reported back to the board that the decision to pursue its establishment was a clear ‘yes” vote unanimously. The working group will report back to the board by April, 2017, on costings, timing and a business case model for funding approval.

 

Ag Concepts Fwd Prices at 18 November 2016

Micron

Date

Low

High

21

18-Jan-17

1405

1405

21

22-Mar-17

1395

1395

21

14-Jun-17

1370

1370

  

Main Buyers (This Week) 

1

Techwool

6985

2

Fox & Lillie

5855

3

Tianyu

3041

4

Lempriere (Aust)

2937

5

PJ Morris

2668

6

Michell Aust

2612

7

Aust. Merino Exp

2297

8

Modiano

2230

9

Kathaytex Aust.

1850

 

Eastern Market Indicators (AUD cents/kg clean)

1314 cents é 24 cents compared with 11/11/2016

Northern Market Indicators (AUD cents/kg clean)

1359 cents é 28 cents compared with 11/11/2016

AUD/USD Currency Exchange

0.7483 ê 0.0185  compared with 11/11/2016

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