Weekly Market Reports


2 September 2016

admin Macwool - Friday, September 02, 2016

WEEKLY MARKET REPORT

Week Ending 2nd September, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S09/16

This Week

M09/16

Last Sale

S08/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1599n

1569

1588n

+11

1458

+141

18

1567

1546

1553

+14

1406

+161

19

1513

1506

1496

+17

1343

+170

20

1490

1475

1478

+12

1294

+196

21

1480

1467

1471

+9

1286

+194

22

1462n

1458

1452n

+10

1274n

+188

26

1167n

1150n

1139n

+28

1061n

+106

28

791

786n

777

+14

905

-114

30

-

671n

677

-7 (M)

857 (M)

-186

MC

1056

1043

1053

+3

1063

-7

MARKET CLOSES IN ON 12 MONTH PEAK

 

Futures trading was spot on late last week as the 20 cent gain filtered through to the physical market as the EMI added 11 cents to its value (now 1320), an identical rise to last sale and equal with the 12 month high of Sale 01. In US$ terms the move was the barest minimum (1 cent) down to 995. Prices increased in a very orderly fashion, 10 to 15 cents for 17 to 23 micron with the super-fine indicators <17 just in sellers’ favour, somewhat disappointing considering this was the opening designated super-fine sale of the season. Despite the indicator’s muted gains, some types with the right specs were up to 100 cents better than their indicators with some 16.5 to 18.5s 170 to 200 cents higher than 3 weeks ago.

Skirtings also profited from the renewed competition as the superior selection saw buyers push the <3% VM lots 10 to 15cents higher while all others were in sellers’ favour. BKNs finer than 19 micron and <4% VM are commonly making 800 to mid 900 cents and up to 15% VM fetching over 600 cents - great money for these wools. Crossbreds enjoyed the lower exchange rate as finer types out to 28 micron posted 15 to 30 cent gains as 30s and broader looked up to 5 cents cheaper. Cardings had a solid sale edging marginally higher as the three regional MCIs sit around 1050.

All the good judge’s forecasts rang true as the favourable exchange rate (falling by over 2.5 cents in 2 weeks) drove buyer competition to new levels. The longer fibred wools (merino and crossbred fleeces) are in good demand as some overseas users are finding it somewhat problematic to get set for larger quantities from exporters to ensure supply at current rates. Surprisingly, the shorter wools and cardings remain subdued as manufacturers try to establish a new buy-in price that will stimulate sales of garments made from these types into the Northern Hemisphere winter.

Plenty of activity in the futures market as 75 tonnes was traded this week out till May 2017 - 21s at 1370/80 - with September trading at 1450/60 for the same micron, just 20/30 cents below the physical market and 1430 for early November. These prices are at historically high levels.

This current rain event will impact on shearing being delayed and wool receivals slowing to a walk. Volumes for Sale 12 and 13 will be smaller than forecasted applying pressure to buyers as the catalogues shrink in the short term and, with the anticipated wettest September for years (20+ days of rainfall is all the talk), this situation could drag on for longer than we think. The national catalogue is just shy of 43,000 bales next week. We open proceedings on Thursday with a 1000 bale catalogue and a firm to unchanged market is expected.

 

Ag Concepts Fwd Prices at 2 September 2016

Micron

Date

Low

High

Micron

Date

Low

High

21

28-Sep-16

1450

1450

28

25-Jan-17

765

765

28

26-Oct-16

775

775

19

22-Mar-17

1450

1450

21

9-Nov-16

1410

1410

21

24-May-17

1380

1380

 

Main Buyers (This Week)

1

Techwool

5592

2

PJ Morris

4528

3

Chinatex

3940

4

Fox & Lillie

3565

5

Aust. Merino Exp

3238

6

Lempriere (Aust)

3148

7

Tianyu Wool

2553

8

Modiano

1904

9

West Coast Wool

1555

 

 

Eastern Market Indicators (AUD cents/kg clean)

1320 cents é 11 cent compared with 26/08/2016

Northern Market Indicators (AUD cents/kg clean)

1344 cents é 11 cents compared with 26/08/2016

AUD/USD Currency Exchange

0.7543 ê 0.0068  compared with 26/08/2016

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