Weekly Market Reports


20 February 2015

admin Macwool - Friday, February 20, 2015

WEEKLY MARKET REPORT

Week Ending 20th February, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S34/14

This Week

M34/14

Last Sale

S33/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1339

1313

1363

-24

1339

0

18

1307

1294

1321

-14

1283

+24

19

1206

1201

1211

-5

1231

-25

20

1167

1167

1167

0

1196

-29

21

1166

1164

1158

+8

1190

-24

22

1164

1161

1157n

+7

1179n

-15

26

888n

880n

875n

+13

736n

+152

28

814

806

809

+5

671

+143

30

777

772

775

+2

624

+153

MC

910

823n

909

+1

810

+100

HOW TO DODGE A BULLET!

A “perfect storm” was brewing early in the week. Not the cyclones that are battering QLD and the NT but the combination of Chinese New Year, the largest anticipated offering in 4 years and a rise in the exchange rate all looked to be conspiring to potentially hand the market a belting. Buyers were questioning how so much wool could be on offer from the initial forecast of 44,000 bales up to 59,000 in 2 weeks. Quiet easy as the EMI added 50 cents in that time and are growers, who are holding wool waiting for a decent rise in the market, just going to sit  and hope for another lift???  As it turned out big withdrawal rates (4,800 bales) and 6,500 bales passed in saw only 46,500 bales sold to the trade, marginally higher than the 3 sales before.

The market did start poorly in Melbourne on Tuesday but by Wednesday looked to be in recovery mode. When we sold on Thursday things had turned around. By week’s end the market had split in two - finer microns from 18.5 couldn’t gain any traction and fell 15 to 25 cents. The medium types fared much better, 19 to 20s up to 5 cents off and broader microns 5 to 10 dearer with a few lots with the right specs up to 20 cents higher than the indicators.

Room 2 types shook off all the predicted doom and gloom to post good (if not spectacular) gains. Broader skirtings opened in sellers’ favour but, by the time we hit the selling rostrum, increases of 10 to 20 cents were common. One grower from Orange averaged 697 cents ($1,311/bale) for his BKN and BLS, incredible prices!! Crossbreds also maintained the rage, up by 10 to 15 cents for 25 and 26s and up to 5 cents higher for the broader microns. The 25 micron indicator is at 990 cents in Melbourne, again a fantastic price. Cardings took a breather to have a solid, but unchanged sale, both MCI’s on the eastern seaboard adding just 2 cents.

Away from wool sales there’s plenty happening. AWI’s review into the Wool Selling System has growers divided down the middle and some ideas and submissions that have been floated to AWI are frankly “PIE IN THE SKY” stuff to totally unworkable –see this week’s “The Land”, page 56. Then read page 18 letters, “Wool’s real challenge”, written by Josh Lamb who is very well known to key staff in this organisation and, in fact, have seen how he negotiates prices in China. His letter is spot on. The broker’s forum that AWI conducted last Friday went over previous ground re centralised selling, sale by description and electronic selling not more than 5 years ago to no avail. The wool buyers held their forum today and hierarchy at AWI would’ve been put under the blow-torch from the exporters regarding the 3 points above which are very sensitive to both brokers and buyers.

The market held on very well considering the mood early in the sale. Next week will see the final designated Super-fine sale of the season with no real expectations of any real movement in the market.

Don’t forget our Open Day and Last Chance Ram Sale tomorrow from 11.00am.  There will be guest speakers, rams for sale, display rams, auto-drafter demo, trade and product displays and the core machine in action. 

Main Buyers (This Week)

1

Techwool

6166

2

Tianyu

4815

3

Chinatex

4672

4

Fox & Lillie

3789

5

PJ Morris

2625

6

Aust. Merino Exp

2485

7

Kathaytex (Vic)

2298

8

Lempriere

2245

9

H Dawson Sons

1688

 

Eastern Market Indicators (AUD cents/kg clean)

1090 cents ê 2 cents compared with 13/02/2015

AUD/USD Currency Exchange

0.7797 é 0.0139 compared with 13/02/2015

Northern Market Indicators (AUD cents/kg clean)

1114 cents ê 1 cents compared with 13/02/2015

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