Weekly Market Reports


19 February 2016

admin Macwool - Friday, February 19, 2016

WEEKLY MARKET REPORT

Week Ending 19th February, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S34/15

This Week

M34/15

Last Sale

S33/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1578

1568

1569

+9

1339

+239

18

1540

1525

1531

+9

1307

+233

19

1443

1441

1454

-11

1206

+237

20

1406

1399

1406

0

1167

+239

21

1402

1395

1401

+1

1166

+236

22

1388n

1390

1386n

+2

1164

+224

26

976

971n

972n

+4

888n

+88

28

838

828

831

+7

814

+24

30

730

726

743

-13

777

-47

MC

1107

1131

1094

+13

910

+197

FLAT MARKET A BIT DISAPPOINTING

The Chinese New Year may have come and gone but there looked to have been a delayed hangover as the market was undecided as to which direction to go. After a promising start to the sale the market faltered on the closing day to have the EMI creep just 1 cent higher to 1285.In US$ terms the rise equated to 8 cents to 921, helped by the lift in the exchange rate to 71.65 cents. This lift in the A$ looked to be the impetus for the market’s retreat on Thursday as well as the sudden 18% (7,500) lift in volumes to 50,000 for next sale taking the urgency out of some buyer’s strategies. By week’s end the movements were minimal, 19.5 and broader just in sellers’ favour, 18.5 to 19 back by 10 cents while 18s and finer posted 10 cent gains, bar 17.5s back by 5 cents.

Skirtings had a similar sale as fine types <19 micron with 3% VM added 10 cents to their values while the burrier lots looked 5 cents better on the opening day and held their values on the final day. Cardings were the best performing sector as fears of a continually falling market were allayed (for the moment). The regional MCIs rose from 25 cents in the west to 15 to 20 on the eastern seaboard - all 3 centres back above 1100 cents as all types gained 10 to 20 cents. Price movements for XB wool were split as <28s were up to 5 cents higher while 30 micron and broader fell 10 to 15 cents..

Away from the sale rooms there is plenty to report on. The Wool Selling System Review final report is out and the main recommendations include pushing for sale by description and the adoption of the proposal of online Wool Exchange Portal (WEP). These 2 proposals have been met with much trepidation from the buying fraternity. If mills can’t be given a guarantee of “unsighted wool” they may well source wool from other countries and is another method of selling wool needed along with the 5 or 6 that are in place now?? (The Land, page 5). The review also questioned the role of the AWTA as a tax-free statutory body that is lacking effective neutrality recommending money going to research and development (page 17). Also in the headlines (page 16) is confirmation that the world’s leading mills (34 directors) have signed a petition urging our wool industry to lift animal welfare standards. The petition has reignited fears of consumer rejection of mulesing. They have called on the industry to (a) make pain relief a legal requirement at mulesing time and (b) make compulsory the declaration of growers’ mulesing status. State and territory government’s endorsement of animal welfare standards and guidelines for sheep recommended that mulesing take place on 2 to 12 week old lambs and pain relief to be used only on lambs 6 months and older. Leading processor, Laurence Modiano, says this approach could damage the image of wool as many global brands would love to use wool but fear being associated with animal cruelty. Just a reminder for growers who are shearing now that Sale 39 will be held at the Royal Easter Show and Sale 41 will be held in conjunction with the IWTO Conference at the Four Seasons Hotel in The Rocks.

Ag Concepts Fwd Prices at 19 February

Micron

Date

Low

High

21

6-Jul-16

1350

1350

 

Main Buyers (This Week)

1

Techwool

5567

2

Chinatex

5107

3

Tianyu Wool

3379

4

Lempriere (Aust)

2917

5

Aust. Merino

2571

6

Fox & Lillie

2524

7

Global Wool Exp.

1915

8

Modiano

1786

9

Michell Aust.

1573

 

 

Eastern Market Indicators (AUD cents/kg clean)

1285 cents é 1 cent compared with 12/02/2016

Northern Market Indicators (AUD cents/kg clean)

1313 cents é 4 cents compared with 12/02/2016

AUD/USD Currency Exchange

0.7167 é 0.0059  compared with 12/02/2016

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