Weekly Market Reports


21 September 2018

admin Macwool - Friday, September 21, 2018

WEEKLY MARKET REPORT

Week Ending 21st September, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S12/18

This Week

M12/18

Last Sale

S11/18

Sydney

Change

Last Year

Sydney

Sydney

 Yearly Change

            17       

2988

2893

3008 

-20

2228

+760

            18       

   2688   

2633

2708

-20

2072

+616

            19       

2429

2397

2439

-10

1778

+651

            20       

2294

2258

2303

-9

1588

+706

            21       

2243

2229

2274

-31

1540

+703

            22       

 -

2222

-

-31 (M)

1490 (M)

+712 (M)

            26       

1433n

1504n

1493n

-60

1101

+332

            28       

944n

959

975

-31

813

+131

            30       

728n

756n

738n

-10

586

+142

    MC

1531 

1568n

1563

-32

1113n

+418


CURRENCY MOVEMENT DICTATES PRICE
Another busy week in the world of wool: for the 4th sale in a row the AWEX EMI had a minor adjustment, shaving 27 cents (1.3%) to 2067 from the last series. For the past month the range has been from 2094 to this sale’s level. The market fell just 3 cents in $US terms to 1500 cents due to the spike in the FRX. Unlike the last 3 sales < 19 micron were caught up in the falls as losses ranged from 10 to 20 cents for 20s and finer and broader types 20/30 cheaper barring the very best fine types, virtually unchanged from previous levels. 
The skirting market suffered larger losses, finer types < 17 micron fell by 40 to 60 cents while all others gave back 20/30 cents. Cardings retreated from their new record high to see its first losses since early July (a 32 cent fall to 1531) with LKS the main culprit down by 40 to 60 cents while STN/CRT only fell by 10 to 15. Crossbreds also took a hit, losses ranged from 10 cents for broader wools to 60 cents for the finer microns.
If the Nanjing Wool Conference was the stimulus for an immediate dearer market we might have to wait a bit longer to see a lift. The ascendency of the $A looked to be the main driver behind this week’s fall to delay any positive movement for the time being. More news from the conference was the China/US trade war with textiles caught up in about 10% impact of the $400 billion tariff total ($4 billion) but thankfully the impact is on industrial Geo textiles and carpet exports to the USA. Of course price was a hot topic for the Chinese but not complaining about these new levels, more trying to adapt to the new prices and survive with better management strategies and improving production techniques to allay any further costs as they are fully aware of the impact of the drought on the quality of the wool arriving at their mills and the effect on the shrinking volume.
The woollen sector is under pressure as the double-faced fabric sector is suffering from high finished stock levels, excess capacity, retailers wanting more complicated products and subdued demand and the “fake fur” segment is flat at best. The positive sector which has led the price revival over the past 2 years is the sport and active-wear market that has expanded rapidly and will continue to do so especially from demand from the local Chinese consumer. The Chinese manufacturers are concentrating on this growing local demand rather than higher margin export markets where more volume can be sold to the “young hip” Chinese consumer that wants to support locally made products.   
Another good week as ram sales continue around the state.  Gullengamble from Yeoval sold 121 rams for a top price of $6500 to average $2336. Parkdale from Dubbo had a 100% clearance with a top price of $2800 to average $1120. Coddington Uardry Polls from Wellington cleared all 100 rams to average $2106 with a top price of $9000 and the famous Merryville Stud at Boorowa cleared 140 rams with a top price of $6000 twice to average $1986.
Congratulations must go to Steven Mudford from Gilgandra who broke the world record for a single stand shearing of wethers at the Parkdale Stud. He shore 373 for the 8 hours, averaging 93/run, that works out at 1 sheep every one and half minutes!! Well done.  Market direction next week will depend on the FRX movements so the experts say.  

Main Buyers (This Week)

1

Seatech

4099 

2

Techwool

2654

3

Fox & Lillie

2188

4

Kathaytex Aust.

2092

5

New England

1417

6

Tianyu Wool

1186

7

Aust. Merino

1046

8

Lempriere

994

9

PJ Morris

992

 

Eastern Market Indicators (AUD cents/kg clean)

2067 cents é 27 cents compared with 14/09/2018

 

Northern Market Indicators (AUD cents/kg clean)

2140 cents é 00 cents compared with 14/09/2018

 

AUD/USD Currency Exchange

0.7257 ê 0.0079 compared with 14/09/2018


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