Weekly Market Reports


18 October 2019

admin Macwool - Friday, October 18, 2019

 WEEKLY MARKET REPORT 

Week Ending 18th October, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S16/19

This Week

M16/19

Last Sale

S15/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1898

1884

1902

-4

2743

-845

18

1850

1839

1867

-17

2530

-680

19

1763

1770

1788

-25

2330

-567

20

1722

1708

1762

-40

2262

-540

21 1712n 1706 1753 -41 2223 -511
26 1160n 1156n 1170n -10 1301n -141

28

899n

909

940n

-41

846 (M)

+63 (M)

30

-

685

719 (M)

-34 (M)

758 (M)

-73 (M)

MC

987n

1004

991n

-4

1299

-312

MARKET HOPEFULLY HAS FOUND THE LEVEL!

The volatile nature of the market is still well and truly in play as price levels of last sale couldn’t be maintained this week but the degree of fluctuations not as bad (or good) as some over the past 6 weeks. The market opened on a softer note as the 3 centres fell but Fremantle did stage a late recovery on Wednesday. This flowed through to the eastern seaboard on Thursday as minor gains were recorded. By the end of the sale the AWEX EMI fell 26 cents to 1517, < 17.5 were in buyers’ favour while 18s and broader lost 20/40 cents. Skirtings followed a similar pattern to their fleece counterparts to finish the sale 20 cheaper. Cardings were the least affected sector as LKS/STN lost 10 to 20 cents while XBs retreated by 10 to 40 cents.

Trading looks to have returned to somewhat of a normal pattern as the EMI has settled just above 1500 cents - hopefully a bottom level of the market as writing business seems to be easier than a month ago but price movements are still largely driven by supply both for volume and wool types. The acceptance of these prices is widespread as most mills are committed to strategising loss-recovery plans from the hectic financial results caused by the dramatic downturn in price with sentiment at the other end of the wool textile chain still subdued.

Could the global economy be showing signs of recovery?? Now that Brexit is locked in to go ahead without any more hiccups and the US-China trade war not as bullish as the rhetoric may have sounded world economies might have dodged a bullet. Retail sales in China rose by 0.7% in August compared to 12 months ago and their trade surplus increased to US$40 billion in September, up by US$9 billion from September, 2018, putting the yearly trade surplus up to US$300 billion, $80 billion higher than the same period last year. Chinese exports did however drop by 3% but were offset by an import reduction of 8%. Their growth in retail sales is good news for woolgrowers as they buy 75% of our wool of which 45% is sold as woolen products in China, putting them at no1 for the largest consumer of wool in the world.

Next week has 33,000 bales on offer with only enough wool in Sydney for a 1 day sale as some growers hold onto their wool waiting for a dearer market and those who have passed-in wool wait for the market to recover up to that level or better. Going on Thursday’s dearer trend we hope the market can keep moving upwards.

Southern Aurora Fwd Prices         

Micron

Date

Low

21

November 19

1670

Free knitted woollen jumpers for poddy lambs. Call into our office in Dubbo or Macdonald Rural at Brewarrina and take as many as you need. Many colours and styles to choose from!

Main Buyers (This Week)

1

Techwool

4383

2

Endeavour Wool

3240

3

Aust. Merino

2911

4

PJ Morris

2759

5

Fox & Lillie

2323

6

Seatech Ind.

1537

Eastern Market Indicators (AUD cents/kg clean)

1517 cents ê 26 cents compared with 11/10/2019

Northern Market Indicators (AUD cents/kg clean)

1545 cents ê 22 cents compared with 11/10/2019

   AUD/USD Currency Exchange

0.6787 é 0.0039  compared with 1110/2019

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