Weekly Market Reports


20 January 2017

admin Macwool - Friday, January 20, 2017

WEEKLY MARKET REPORT

Week Ending 20th January, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S29/16

This Week

M29/16

Last Sale

S28/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2016

1970

1943

+73

1554

+462

18

1931

1874

1861

+70

1531

+400

19

1761

1743

1733

+28

1451

+310

20

1583

1575

1587

-4

1391

+192

21

1478

1473

1495

-17

1384

+94

22

1426n

 

1444n

-18

1369n

+57

26

930

933

941n

-11

978

-48

28

665

664

662

+3

834

-169

30

575

551

579

-4

778

-203

MC

1165n

1171

1164

+1

1140

+25

TWO MARKETS IN ONE!

A vastly different market greeted growers this sale when compared to last week’s auction. When looking at the AWEX weekly report, a rise of 12 cents for the EMI to 1434 (a new record since AWEX took on market reporting way back in 1993) looks to be good but it was a market going in two different directions.

Again, it was the finer microns leading the way with <18.5 microns 55 to 85 cents higher despite a 5 to 25 cent fall on the final auction day. The 19 to 19.5s lifted by 10 to 30 cents but that’s where the good news ended as 20s and broader gave up 5 to 20 cents from last weeks  high.  The ever-increasing volume of higher VM took its toll as these fleece types (above 4% VM-19 micron and broader) were 50 to 100 cents cheaper than last week.

Skirtings looked to be the best performing sector of all. Buyers focused on the sub 18 microns, best style <5% VM pushing these up by 20 cents for 18s to 70/110 cents for 17 and finer. One particular clip from Orange averaged $1885/bale for skirtings and cardings (including dags) incredible money!! Cardings also held their nerve as finer than 18 micron across all types were quoted up to 10 cents dearer while broader lots looked fully firm. To highlight this, a burry clip from Tilpa saw its locks make 699 whilst its top fleece price was only 50 cents higher! This example of LKS/CRS being 2nd top price in burry clips will not be too uncommon.

Crossbreds had a mixed sale as a final day recovery saw 25 and 28 micron in the sellers’ favour as all other microns lost 5 to 40 cents with some carding and carbo types (above 15% VM) virtually unwanted as the pain could drag on in this sector for a while

Whilst the headlines in The Land herald record wool prices, and recent gains are certainly welcome, general prices are not in record territory. Whilst we have to go back a long way, fine wool prices have certainly been a lot higher several times over the last 30 years. What we do see happening as the seasonal conditions from last winter onwards convert to greasy wool, a gradual increase in micron and much more vegetable matter in fresh shorn wool. As yet the bulk of the VM has been trefoil but seed and shive will really test the strength of the market. The two halves we saw this week coincided with the increase in burry broader merino types. Put simply, fine and free should continue unabated whilst broad and burry may have hit some resistance. Discounts for the higher VM lines (up around 8-10%) opened out to close to 200 cents clean this week. None of these types are included in the market report micron indices.  So whilst they can crow about a record indicator level, they are not reporting a fair chunk of the wool sold!  Next week just over 47,000 bales down from 56,000 bales should help. We sell Tuesday with 800 bales.

Ag Concepts Fwd Prices at 20 January 2017

Micron

Date

Low

High

19

26-Apr-17

1670

1670

21

15-Mar-17

1430

1445

21

08-Feb-17

1450

1450

 

Main Buyers (This Week) 

1

Techwool

7307

2

Fox & Lillie

5393

3

Chinatex (Aust)

5255

4

Lempriere (Aust)

4703

5

Michell Aust

3038

6

P.J Morris Wool

2910

7

Aust. Merino Exp

2462

8

Modiano

2246

9

Tianyu

2166

      

Eastern Market Indicators (AUD cents/kg clean)

1434 cents é 12 cents compared with 13/01//2017

Northern Market Indicators (AUD cents/kg clean)

1506 cents é 16 cents compared with 13/01/2017

AUD/USD Currency Exchange

0.7522 é 0.0058  compared with 13/01/2017

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