Weekly Market Reports


20 April 2018

admin Macwool - Friday, April 20, 2018

WEEKLY MARKET REPORT

Week Ending 20th April, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S42/17

This Week

M42/17

Last Sale

S41/17

Sydney Change

Last Year

Sydney (Wk41)

Sydney Yearly Change

17

2768n

2753n

2763

+5

2317

+451

18

2355

2344

2293

+62

2173

+182

19

2088

2090

2037

+51

1895

+193

20

1981

1983

1929

+52

1608

+373

21

1952

1951

1893

+59

1507

+445

22

-

1929

1854 (M)

+75 (M)

1410 (M)

+444 (M)

26

1247

1261n

1208

+39

1041

+206

28

926

943

899

+27

735

+191

30

674

688

638

+36

584n

+90

MC

1368n

1381n

1352n

+16

1159

+209

BACK INTO RECORD TERRITORY

With last week’s 54,000 bale offering behind us and production forecasts now prophesying a decline in wool production it wasn’t that surprising to see the market push further into record territory. The offering of 39,605 bales saw the EMI end the week just 9 cents short of its all time high set late February but it was the 21 and 22 micron indicators that set new highs. It is quite conceivable that we could see 21 microns reach 2000 cents clean in the coming weeks!

The pace gathered slowly as the week progressed and clearly it was the medium wools where the strongest competition was. Fine wools, which led the rises late last year appeared to have plateaued with fewer of the best style lines on offer. Seasonal conditions are now impacting the quality of the offering with fleece wools under 65% making up over half the offering. Buyers are struggling to fill orders with enough high yielding, sound lines so discounts for lower average types will likely increase. Competition was mainly from Chinese interests but this week saw increased interest from Indian connections who punted some time back that the market would fall. It seems their stock levels will have depleted so it was either suck it up and wade into the market or shut up shop.

Crossbred wools this week also posted solid gains to hit a two year high with fair to average XB clips back to averaging over $1000 a bale. Merino oddments also saw another strong week with the carding indicator rising for the fourth consecutive week, about 100 cents for the month.

Next week is looking promising as Fremantle (which sells for two hours after Sydney and Melbourne close) continues to strengthen, normally a positive sign for the coming week. There is a slightly higher offering next week of 43,648 bales which shouldn’t pose too many problems. There is almost no wool stored on hold and brokers receivals are starting to lighten off as the impact of essentially 12 months of below average rain stalls production. Winks might be the safest bet in town but the next safest bet would be that this market won’t drift much over the coming weeks. Wool sales straddle Anzac Day next week with MacWool to offer a stylish catalogue of 1085 bales on the second day.

                                                         Ag Concepts Fwd Prices as at 20 April, 2018

Micron

Date

Low

High

21

16-May-18

1930

1930

21

11-Jul-18

1810

1810

21

14-Nov-18

1730

1730

Main Buyers (this week)

1

Techwool

5729

2

Fox & Lillie

4782

3

Modiano

3004

4

PJ Morris

2735

5

Seatech Ind

2359

6

Tianyu

2143

7

Endeavour  Wool

2072

8

Aust. Merino Exp.

1681

9

Michell Aust.

1411

Eastern Market Indicators (AUD cents/kg clean)

1825 cents é 49 cents compared with 13/04/2018

Northern Market Indicators (AUD cents/kg clean)

1881 cents é 35 cents compared with 13/04/2018


AUD/USD Currency Exchange

0.7808 é 0.0058 compared with 13/04/2018

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