Weekly Market Reports


20 December 2019

admin Macwool - Friday, December 20, 2019

WEEKLY MARKET REPORT 

Week Ending 20th December, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S25/19

This Week

M25/19

Last Sale

S24/19

Sydney

Change

Last Year (Wk24)

Sydney

Sydney Yearly

Change

17

2005

1989

1925

+80

2532

-527

18

1907

1863

1815

+92

2402

-495

19

1818

1789

1723

+95

2247

-429

20

1792

1771

1708

+84

2178

-386

21 1783n 1769 1705n +78 2145 -362
26 1180n 1164 1120n +60 1205n -25

28

914n

913

840n

+74

855n

+59

30

-

729

671 (M)

+58 (M)

693 (M)

+36 (M)

MC

1071n

1051n

1040n

+31

1146

-75

CONFIDENCE IS KING!!

Last sale’s upward shift in the market accelerated this week - the final sale before the 3 week recess. The AWEX EMI rose by 55 cents to 1558 and 32 cents in $US terms to 1066 despite the FRX staying well above 68 cents. Buyers were keen from the get-go with large increases in the opening session followed by a more measured approach on the final day but still good gains. All fleece microns posted gains of 75 to 95 cents regardless of style or any faults. Skirting’s were also in good demand as buyers pushed all types in this sector 60 to 90 cents higher. Crossbreds were also keenly sought after as most microns added 60/70 cents. The only sector to not explode in prices was cardings. Sydney and Fremantle averaged 20 cent rises while Melbourne lost 7 cents to have the 3 centres’ average price at 1070.

Despite the anticipated large offering (39,400), the high FRX and shipping logistics delays, the market had its largest weekly increase for 12 sales. The final volume offered was 12% lower than originally rostered due to a high withdrawal rate and with no chance to buy any meaningful quantity till mid January buyers were under pressure to fulfil outstanding commitments from the reduced selection on offer.

This year, particularly the final 6 months, has been one of the toughest periods for all in the industry. Firstly growers are still combatting the worst drought for over 100 years, massive reductions in sheep numbers, poor quality wool and a drop in the market of 17% (1862) from 12 months ago to 1558. The peak of the market was in mid February at 2027 and the low point was early September when the EMI got down to 1365, a 33% swing. At the high point in February just 252 cents separated 17 from 21 micron (2620 to 2368). At the cheapest point of the year the spread wasn’t much wider, 17s at 1842 and 21s were 1487 - a 355 cent difference. Exporters have had a year to forget as well. The high prices from last year into 2019 proved unsustainable as global events that we have spoken about in several reports conspired against them as consumer demand weakened. The market’s demise started in May and peaked in August, falling 163 cents in a single week only to stage a remarkable recovery in S11 climbing by 170 cents. Buyers, understandably, couldn’t trade with any confidence with such wild swings and are still feeling the effects now. The British election outcome and the softening of trade tariffs have boosted confidence that will hopefully carry on into the new year.

Southern Aurora Fwd Prices              

Micron

Date

Low

21

February 20

1690

Main Buyers (This Week)

1

Techwool

4996

2

Fox & Lillie

4068

3

Endeavour Wool

3581

4

Aust. Merino

3430

5

Tianyu Wool

2881

6

PJ Morris

2077


Eastern Market Indicators (AUD cents/kg clean)

1558 cents é 55 cents compared with 13/12/2019


Northern Market Indicators (AUD cents/kg clean)

1599 cents é 72 cents compared with 13/12/2019

   

AUD/USD Currency Exchange

0.6845 ê 0.0040  compared with 13/12/2019

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