Weekly Market Reports


21 October 2016

admin Macwool - Friday, October 21, 2016

WEEKLY MARKET REPORT

Week Ending 21st October, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S16/16

This Week

M16/16

Last Sale

S15/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1661

1643

1658

+3

1419

+242

18

1650

1622

1642

+8

1401

+249

19

1572

1569

1561

+11

1286

+286

20

1466

1451

1454

+12

1229

+237

21

1414

1413

1402

+12

1216

+198

22

1395n

1382

1374n

+21

1207n

+188

26

1065n

1103n

1076n

-11

1013n

+52

28

746

753

756

-10

826

-80

30

609

610n

613

-4

781

-172

MC

1099n

1092

1076

+23

1060

+39

MARKET CLOSES IN ON YEARLY HIGHS!

The wool market kept going on its positive way to extend rises to an 8 day (4 week) stretch, to have the EMI now at 1331, outdoing the Sale 1 peak of 1320. A quick look back at market peaks has us in rarefied air at this level. There has only been 2 sales (early June 2015) when the EMI has been higher and from then until July this year only 1 week in August, 2015, above 1300 cents. Since July the EMI has been above 1300 cents for 9 sales setting somewhat of a new platform. Indicators <19.5 are at highs not seen for years while 20 and broader are at levels not far off their highs earlier in the season.  The medium types, >20 micron, led the charge this week albeit at a slower pace than last sale, adding 10 to 20 cents. Superfine growers may have been a little disappointed at the outcome as <19 could only manage 5 to 10 cent gains; oddly enough 30 to 40 cent rises for lower types but, if lots had the right specs, premiums were 20 to 60 cents to the good even out to 19 micron and over 2% VM with “spinners” style lots 150/200 above the indicator.

Skirtings weren’t to be denied as the designated superfine sale offered cracking lots for exporters. Fine micron types, <18 and below 5%VM, were keenly sought after most posting 30/40 cent gains with some selected lots +50 to 80 cents as all other types looked 10 to 20 cents dearer. Tight supplies of cardings and LMS also found favour with buyers as LKS jumped 25 to 50 cents with CRS and STN 15 to 25 cents better with washing LMS extreme. All 3 centres’ MCIs are closing in on the 1100 cent mark to be at this season’s peak. Crossbreds continue to buck the rising trend of the merino sector suffering from the exchange rate and over-supply of >30 micron types, 25s and 32 micron remained unchanged while 26 to 30s lost 5 to 10 cents.

Despite the major shift in exchange rates all buyers were keen to secure wool to reinforce an increase in demand. The 28 cent rise in $US terms to 1021 was its biggest rise for some time. The rising $ did impact on some European orders for some types but the re-emergence of one Chinese indent buyer after a few sales on the sidelines pushed the medium microns up. The next 2 sales have offerings averaging 45,000 - the past 2 dry weeks allowing receivals to catch up but should not hinder the market’s consolidation as plenty of sales were negotiated last night as the AU$ comes off its 7 month highs of 77.85 to 76.25 this morning. One ram sale to note; “Grogansworth” at Yass sold 90 rams to a top of $5250 to average $1720, most ram sales in this area now wound up.

Ag Concepts Fwd Prices at 21 October 2016

Micron

Date

Low

High

21

9-Nov-16

1410

1418

21

7-Dec-16

1400

1400

19

22-Mar-17

1520

1520

 

Main Buyers (This Week) 

1

Techwool

4507

2

Fox & Lillie

3494

3

Aust. Merino Exp

3091

4

Tianyu Wool

2761

5

PJ Morris

2721

6

Lempriere (Aust)

2067

7

Chinatex

1710

8

United Wool

788

9

Michell Aust

769

 

Eastern Market Indicators (AUD cents/kg clean)

1331 cents é 13 cents compared with 14/10/2016

Northern Market Indicators (AUD cents/kg clean)

1372 cents é 13 cents compared with 14/10/2016

AUD/USD Currency Exchange

0.7675 é 0.0143  compared with 7/10/2016

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