Weekly Market Reports


21 March 2014

admin Macwool - Friday, March 21, 2014

WEEKLY MARKET REPORT

Week Ending 21st March, 2014

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S38/13

This Week

M38/13

Last Sale

S37/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1288

1256n

1303

-15

1378n

-90

18

1225

1211

1253

-28

1293

-68

19

1176

1160

1202

-26

1259

-83

20

1141

1130

1164

-23

1206

-65

21

1138

1130

1156

-18

1197

-59

22

1128n

1129

1148n

-20

1181

-53

26

743n

744n

748n

-5

819n

-76

28

659

660

670

-11

629

+30

30

629

627n

635

-6

583

+46

32

564n

-

564n

0

493n

+71

MC

808

818

814

-6

752

+56

STILL FALLING.....WHERE'S THE BOTTOM??

The market continued on its downward spiral this week as the benchmark AWEX EMI conceded another 19 cents to 1035. In US cent terms the fall amounted to 22 cents (now down to 933) a massive 189 cents (17%) drop when compared to this time last year - this big disparity due to the fall in the exchange rate (back 14 cents compared to 12 months ago). Re–offered wool made up 10% of the offering indicating that some growers are putting passed-in wool back into the market and letting it go before the market worsens even more, but still there is some grower resistance as the pass-in rate was 16%. Most microns gave up 20 to 30 cents, with 17s back by 15 and finer types falling by 30 or more. The typical autumn offering has arrived, with fewer quantities of best top-making types and larger volumes of low spec lots with higher VM and more dust and tender wool due to the very dry conditions over the summer. The drop in the quality of the selection is weighing on the market, but is not the major factor driving the market down.

Skirtings tended to be less affected than their fleece counterparts as the price differential between the two sectors continues to shrink. Most types and descriptions lost 15 to 20 cents over the course of the sale. Even with a reduced quantity of crossbred wool, 20% of the selection on the eastern seaboard, the market lost 5 to 10 cents across all types. Cardings weren’t immune from the negative market sentiment as all three centres slipped by an average of 7 cents as locks and crutchings backed off by 10 cents in Sydney.

With the falling market comes less opportunity to lock wool in at reasonable levels. At the moment we only have 3 growers with cover ranging from 1250 to 1140 cents for a total of 10,000 kg. We have forward orders waiting to be booked ranging from 1200 to 1300 cents for 27,500 kg. These levels look completely out of reach considering where the market is, and more importantly, where the market might be heading. These growers might have to reconsider their target price as some cover at a lower price will be better than no cover at all. A forward price above 1100 cents may well be a good price through the winter.

It seems that nothing at the moment can stop the falling wool market. A lack of demand is the major problem we face at the present time with short supply, small offerings and seasonal conditions affecting quality not influencing buying patterns. Twelve months ago the market was in free-fall losing ground all the way through to mid May when 966 was the low point of the market (a figure that is only 70 cents away). Let’s hope we don’t get there. National quantities remain in the low 40,000s for the foreseeable future, but this won’t help the market. We sell next Thursday with 1100 bales on offer.

                                                                  Ag Concepts Fwd Prices at 21 March 2014

Micron

Date

Low

High

21

25-Jun-14

1140

1140

 

Main Buyers (This Week)

1

Techwool

5049

2

Fox & Lillie

2386

3

Chinatex (Aust)

2283

4

Lempriere (Aust)

2257

5

Tianyu Wool

2165

6

Aust. Merino Exp

2096

7

QLD Cotton

1711

8

PJ Morris

1626

9

Modiano (Aust)

1117

 

Eastern Market Indicators (AUD cents/kg clean)                                    AUD/USD Currency Exchange

1035 cents ê 19 cents compared with 14/03/2014                                 0.9019 ê 0.0048 compared with 14/03/2014

Northern Market Indicators (AUD cents/kg clean)

1053 cents ê 18 cents compared with 14/03/2014

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=380946&A=Trackback
Trackbacks
Post has no trackbacks.