Weekly Market Reports


2 February 2018

admin Macwool - Friday, February 02, 2018

WEEKLY MARKET REPORT

Week Ending 2nd February, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S31/17

This Week

M31/17

Last Sale

S30/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2705

2677n

2684

+21

2038

+667

18

2330

2318

2345

-15

1971

+359

19 

2090

2086

2101

-11

1752

+338

20

1901

1913

1900

+1

1549

+352

21

1789

1798

1785

+4

1438

+351

22

1720n

1728

1723n

-3

1377n

+343

26

1039n

1049n

1046

-7

903

+136

28

718

731

735

-17

655

+63

30

542

539

550

-8

544

-2

MC

1300n

1228n

1334n

-34

1158n

+142

MARKET STABILISES – SHORT TERM OUTLOOK GOOD

History shows that after such a tough sale like last week, the market stabilises or even rebounds and, again, this was the case. The AWEX EMI slipped by just 6 cents to 1738 and by the barest of margins (1 cent) in $US terms to 1399 as cardings and medium fleece microns (18s to 19.5) took the brunt of the falls. A cheaper opening session was followed by renewed buyer interest on the final day to see most losses cut in half by the end of the sale. As has been the case since Christmas, sub 17.5s continued to improve adding 10 to 30 cents to their values - a nice tune-up for the designated super-fine sale next week. 18 to 19.5 micron continued their slide by 10 to 25 cents whereas 20s and broader were unchanged.

The skirting catalogue followed a similar pattern to the fleece types. An opening cheaper session led to the sale ending on a firmer note to be around 20 cents off for the week for < 5% VM with higher VM lots irregular. Cardings are still to find their level as overall losses averaged 40 cents for the 3 centres as most types in this sector gave up 40/50 cents. The crossbred market was cheaper by 10 to 20 cents for 26 to 30 micron, solid for the finer microns and 32s up by 10 - good news after last sale’s big losses.

A good sale considering the pasting XBs and Cardings took last week as the market looks to have found a level according to showfloor talk this morning. As the above table illustrates, all microns are well ahead of the same week 12 months ago, bar 30 micron. Whilst China was cautious early in the series, other countries stepped in at the lower levels to execute some inventory purchasing but, by the final day, China joined the fray to see the market regain some losses. In the ultra-fine sector (< 16.5 micron) competition was fierce as a high quality mill in China out-bid some Italian orders to push these types higher by 160 cents. The improvement in the final session could be a precursor for the next few sales as demand and enquiry ramped up on Wednesday night and this morning as volume pressure could be a factor. The next 3 weeks will be flat out to average 40,000 bales.  This is in contrast to the latest testing figures for January that show 14% more wool tested than Jan., 2017, and is 3% ahead of last season - 213.7mkg to 207.3mkg. We sell late on Thursday with 925 bales on offer.                       

Ag Concepts Fwd Prices as at 2 February, 2018      

Micron

Date

Low

High

21

7-Feb-18

1750

1750

21

11-Apr-18

1730

1730

Main Buyers (This Week)

1

Techwool

4625

2

Fox & Lillie

3552

3

Endeavour Wool

2792

4

Aust. Merino

2474

5

Kathaytex (Vic.)

2317

6

PJ Morris

2209

7

Lempriere

2003

8

Tianyu Wool

1986

9

Seatech Ind.

1865

Eastern Market Indicators (AUD cents/kg clean)

1738 cents ê 6 cents compared with 26/01/2018

Northern Market Indicators (AUD cents/kg clean)

1829 cents ê 16 cents compared with 26/01/2018

 AUD/USD Currency Exchange
0.8048 é 0.0020 compared with 26/01/2018
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