Weekly Market Reports


18 September 2015

admin Macwool - Friday, September 18, 2015

WEEKLY MARKET REPORT

Week Ending 18th September, 2015

  AWEX Northern Micron Indices Comparison

 

AWEX INDEX

This Week

S12/15

This Week

M12/15

Last Sale

S11/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1462

1452

1474

-12

1246

+216

18

1437

1422

1459

-22

1211

+226

19

1356

1354

1393

-37

1161

+195

20

1294

1291

1336

-42

1128

+166

21

1278

1278

1320

-42

1117n

+161

22

1269n

1273

1304n

-35

1112 (M)

+151 (M)

26

1145n

1138n

1136n

+9

798n

+347

28

934

929

948

-14

668

+266

30

886

880

897

-11

651n

+235

MC

1097

1102

1089

+8

778

+319

IT’S MALCOLM TURNBULL’S FAULT!

This week’s wool market continued on its downward trend falling 26 cents to leave the EMI at 1,234. The sentiment that suddenly changed last Thursday looks to have set in as predictions of a cheaper market were all the talk on the showfloor as early as Monday. The Liberal party election of Malcolm Turnbull to Prime Minister (his dream finally realised) saw the currency climb by 2 cents to 71.90 by Thursday, the rising currency playing its part to cheapen the market. In US terms the market actually edged higher by 5 cents to 887. This was certainly not the case in AUD$ terms as the falls ranged from 20 to 40 cents for 17.5 and broader, the finer microns back by up to 10 cents.  Growers were caught by surprise as 20% of all fleece wool was passed for the week. Big discounts for any type of fault (colour, cott, VM and high mid-breaks) were back in vogue as buyers became more and more selective on certain types with some lots attracting token bids or being heavily discounted. The EMI is almost back to the level of early August after two spikes but more downward direction since the winter recess.

Room 2 looked to have more buyer support then their fleece counterparts, but only just. Similar falls on both days saw a reduction of 30 to 40 cents for all types of skirtings. Price levels are still historically high for this sector as growers are much more receptive to meeting the marker as just 6% was passed in.  Merino cardings looked to be the highlight of the week as both days produced minor increase to the MCI as Melbourne and Fremantle cracked the 1,100 cent barrier, now 1102 and 1103. Sydney is only a hair’s breadth away at 1097. Most types in this sector posted a 5 to 15 cent gain. The 2 East Coast centres now only 10 to 20 cents from the record highs set in June and at 1,103 Fremantle has re-written their record. Crossbreds had a mixed sale as 26s and finer added 10 cents, 28 and 30s lost 10 to 15 and broader types unchanged.  

The Nanjing wool conference was held last weekend and can best be described as the most quiet for a number of years, although new business was written but nowhere near the extent of past conferences as a wait and see approach looks to be the way to go for Chinese mills for the time being as all urgency has gone from their purchasing patterns.

Ram sales continued this week with studs very happy with the results. Clearance rates have been extremely high and averages have been up on previous years. Some results of note: Gullengamble at Yeoval averaged $1,940 ($150 up on last year) with a top price of $5,400; a few Dohne sales have been conducted this week; Calga Uardry at Coonamble, 100% clearance with top price $8,250 averaging $1,920; leading SA and VIC studs gathered in Adelaide last week with top poll stud, Moorundie Park, having 2 sale toppers at $38,000 and $30,000. The catalogue averaged an incredible $9,000 as 88% were sold; the famed Merryville stud from Boorowa topped out at $4,800 to average $1,870 - a $500 better average than a year ago. It seems wool growers have got the confidence in the wool job unlike our friends in China as alack of clear market signals is hindering business.

To blame Malcolm Turnbull might sound a bit tough for the wool market’s demise but he did lift the value of the A$!!! China’s woes in their stock market and general lack of confidence in the economy’s ability to grow rather than shrink is weighing heavily on the wool market and things look to be in a real holding pattern till someone makes a move. Next week we will offer 660 bales on Wednesday and hopefully the Chinese can pull a rabbit out of the hat.

 Main Buyers (This Week)

1

Fox & Lillee

4140

2

Australian Merino

3267

3

Chinatex

3203

4

Techwool

2671

5

Global Wool Exp.

2596

6

Lempriere

2300

7

G Schneider Aust.

1615

8

Vic Wool Proc.

1484

9

Tianyu Wool

1371

Eastern Market Indicators (AUD cents/kg clean)

1234 cents ê 26 cents compared with 11/09/2015

Northern Market Indicators (AUD cents/kg clean)

1256 cents ê 27 cents compared with 11/09/2015

AUD/USD Currency Exchange

0.7190 é 0.0189  compared with 11/09/2015



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