WEEKLY MARKET REPORT
Week Ending 19th August, 2016
AWEX Northern Micron Indices Comparison
AWEX INDEX |
This Week S07/16 |
This Week M07/16 |
Last Sale S06/16 |
Sydney Change |
Last Year Sydney |
Sydney Yearly Change |
17 |
1583 |
1542 |
1571 |
+12 |
1554n |
+29 |
18 |
1541 |
1513 |
1533 |
+8 |
1537 |
+4 |
19 |
1484 |
1476 |
1492 |
-8 |
1466 |
+18 |
20 |
1461 |
1453 |
1471 |
-10 |
1420 |
+41 |
21 |
1455n |
1446 |
1462 |
-7 |
1411 |
+44 |
22 |
1440n |
1432 |
1446 |
-6 |
1394 |
+46 |
26 |
1136n |
1133n |
1123n |
+13 |
1085n |
+51 |
28 |
753n |
770 |
738 |
+15 |
927 |
-174 |
30 |
663n |
674 |
- |
- |
868 |
-205 |
MC |
1046 |
1046 |
1041n |
+5 |
1067 |
-19 |
MARKET EDGES HIGHER AS VOLUMES DIMINISH!
Buyers were still unsure as to how the market might play out early in the week as the national catalogue fell to 41,000 bales and the A$ kept moving either side of 77 cents. The market did start off sluggishly - modest falls of up to 5 cents across all microns was the result but the market did firm up right at the end of the opening day. This positive tone was carried into the final day’s offering with most emphasis on 18.5 and finer as broader types drifted lower. By week’s end the market had split in two, 18 and finer posting a 10 to 15 cent increase while 19 and broader lost 5 to 10. The aggressive buying pattern for Spinners/Best style types continued on as they commanded premiums of up to 100 cents as good spec medium types looked to be up to 20 cents better than their micron indicators. The overall gains were the barest minimum for both EMIs up by just 1 cent to 1298 for the AWEX indicator and 1001 in US cent terms.
Skirtings couldn’t keep pace with their fleece counterparts as all types across the full micron and VM spectrum were being quoted 10 to 20 cents cheaper. Crossbred looked to be the best performing sector of the sale as most microns added 15 to 25 cents with the outstanding performer being 32 microns in Melbourne, up a whopping 59 cents!! Cardings clawed back some of last week’s losses after a final day rally of up to 10 cents for most types.
Out of the sale room there was plenty of chatter regarding one of the largest wool buyers and Landmark. A report in last Wednesday’s Financial Review had Lempriere Australia in due diligence to buy Landmark for $1.2 billion from its US based parent company Agrium. Lempriere is a 5th generation wool buying Co. with its origins dating back to the late 1800s in France but forged a partnership with Chinese textile giant Shandong RuYi in 2012 following the purchase of Cubbie Station at Dirranbandi for $240 m. Both parties declined to comment on the speculation. Landmark’s revenue to last December was $2.3 billion, 3rd only to Graincorp and Nufarm for agricultural companies in Australia. Ruralco was also mentioned as a possible contender for the retail business of Landmark.
Still with Landmark, but is fact, is their purchase of rival Victorian woolbroker, Arcadian Wool. It has secured the remaining 50% of the business after founding the company in 1985 with an original 40% that was built up to 47% by 2013. This now gives Landmark 19% of the wool sold through Melbourne, some 160,000 bales/year. With just the 2 Eastern seaboard centres in action next week, with only 31,000 bales on offer, anything less than a firm market would be akin to Michael Phelps drowning!!
Ag Concepts Fwd Prices at 19 August 2016
Micron |
Date |
Low |
High |
21 |
14-Sep-16 |
1420 |
1420 |
19 |
12-Oct-16 |
1450 |
1450 |
21 |
26-Oct-16 |
1385 |
1385 |
21 |
22-Feb-17 |
1355 |
1355 |
Main Buyers (This Week)
1 |
Fox & Lillie |
4641 |
2 |
Techwool |
4392 |
3 |
Chinatex |
4285 |
4 |
PJ Morris |
3362 |
5 |
Aust. Merino Exp |
3118 |
6 |
Lempriere (Aust) |
2865 |
7 |
Tianyu Wool |
2374 |
8 |
Modiano |
1824 |
9 |
Kathaytex Aust |
1312 |
Eastern Market Indicators (AUD cents/kg clean) 1298 cents é 1 cent compared with 12/08/2016 |
Northern Market Indicators (AUD cents/kg clean) 1320 cents ê 1 cents compared with 12/08/2016 |
AUD/USD Currency Exchange 0.7713 é 0.0004 compared with 12/08/2016 |
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