Weekly Market Reports


21 November 2014

admin Macwool - Friday, November 21, 2014

WEEKLY MARKET REPORT

Week Ending 21st November, 2014

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S21/14

This Week

M21/14

Last Sale

S20/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1298

1268n

1302

-4

1369

-71

18

1277

1267

1276

+1

1319

-42

19

1215

1220

1215

0

1283

-68

20

1183

1163

1179

+4

1258

-75

21

1160

1154

1163

-3

1248

-88

22

1146n

1142

1146n

0

1232n

-86

26

818

809n

818n

0

779n

+39

28

703

697

698

+5

669

+34

30

672

660

663

+9

634

+38

MC

791

786

782

+9

809

-18

STEADY AS SHE GOES …

The big anticipated offering failed to eventuate again this sale as growers withdrew 2,200 bales across the three centres to offer 48,000 - the 2nd largest sale for the calendar year. Wooltrade sales kept ticking over which gave us hope that the market should be okay despite the large selection and the A$ seemingly stuck around 87 cents and, of course, the recently signed FTA with China giving new hope for more prosperous times to come for woolgrowers!!

The market had the staggers early in the week as NZ Merino offered its largest catalogue since February (2800 bales of which 41% was passed-in) - the biggest daily pass-in rate in 8 years as 16 and 17 micron types struggled with losses of 20 to 30 cents. The remainder of the sale saw little change in Sydney as its regional indicator was unchanged for the week, 1075 cents, as 19.5s were the best performers up 5 cents while 18.5s lost 7 cents with all others somewhere in between. Fremantle recorded the most movements as gains of 5 to 20 cents saw its indicator crack 1100 cents to 1101. Melbourne dragged the chain under the weight of its big offering as all indicators were in buyers’ favour bar 16.5 to 17s and 20 and 21s, back by 15 cents. The EMI gave up 3 cents - now 1047 – and, in US terms, fell 13 cents to 900. As has been the case for some time, lots with the right specs, low mid-breaks the most critical, are making a premium of up to 30 cents above the indicators even with 2% VM. The highlight of the sale were the 4 bales of 1PP branded EWE TECH, from the New England region which made between 4500 and 4750 cents that measured 14.7 to 15 micron, 0.1 VM, avg 79mm, 77% yield and 48 n/kt, a just reward for magnificent wool, to be spun and weaved in Biella, Italy.

Skirtings maintained their momentum without moving in any real direction in price. All types and descriptions remained rock solid throughout the sale with some better types dearer. Cardings lifted in price as all types looked 10 to 15 cents higher, as the MCI on both sides of the country closed in on 800 cents. Crossbred offerings are at their peak with this week being the largest offering in 9 months - 8870 bales (18% overall). Crossbreds made up a massive 24% of the Melbourne total (6,046 bales). Despite this “mountain” of wool the market held firm to sellers’ favour, a good result.

A good week considering the volume of wool about and higher currency rates with demand okay, but definitely not bullish. The A$ fell sharply to below 86 cents amid a tumbling price for iron ore, its price halving in the past 12 months from $120/ tonne to $60 and bearish commentary from the RBA. A concern coming out of Japan (one of our big customers for woollen garments) is their economy slipping into recession this week. To date, national offerings are only 3,000 bales less than last year but core test figures are well back reflecting volumes of “held” wool coming onto the market now that the less than predicted harvest in some areas is all but wrapped up as some growers fall back on wool for some much needed income that the poor harvest didn’t deliver. Next week’s estimated roster of 53,800 will drop by a bit to have about 50,000 on offer. We sell on Wednesday with 970 bales on offer; hopefully the market can soak up this volume without too much change in price.                                                                    

Main Buyers (This Week)

1

Techwool

5539

2

Chinatex

4434

3

Fox & Lillie

4189

4

Tianyu

3052

5

Aust. Merino Exp

2778

6

Kathaytex (Vic)

2599

7

Lempriere

2403

8

PJ Morris

2383

9

Modiano

2056

 

Eastern Market Indicators (AUD cents/kg clean)

1047 cents ê 3 cents compared with 14/11/2014

 

AUD/USD Currency Exchange

0.8592 ê 0.0101  compared with 14/11/2014

Northern Market Indicators (AUD cents/kg clean)

1073 cents ó 0  cents compared with 14/11/2014

 

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