Weekly Market Reports


22 April 2016

admin Macwool - Friday, April 22, 2016

WEEKLY MARKET REPORT

Week Ending 22nd April, 2016

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S43/15

This Week

M43/15

Last Sale

S42/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1491

1491

1509

-18

1382

+109

18

1433

1437

1465

-32

1356

+77

19

1387

1384

1411

-24

1291

+96

20

1350

1345

1375

-25

1254

+96

21

1325

1317

1361

-36

1227

+98

22

1306n

1299

1340n

-34

1192n

+114

26

1013n

1024n

1014n

-1

951n

+62

28

777

772

791n

-14

860

-87

30

669

677

681n

-12

809

-140

MC

1013

1046

1074

-61

983

+30

 WE’VE HIT THE BOTTOM!!

 The market’s negative tone was the main feature of this week’s sale. The benchmark EMI lost another 24 cents to 1217 (a fall of 53 cents over the past 2 sales), now at its lowest point for 6 months. In US$ terms the loss was the barest minimum (just 1 cent to 950) due to the upward shift in the exchange rate. All the good work the market had done pre and post Easter is completely gone. The A$ peaking at 78 cents during the week (a 12 month high) was the main culprit as was a major discrepancy in national totals.

Most of the fleece losses occurred on the opening day in a very tight range of 25 to 30 cents across the full micron spectrum of 16 to 23. Some types (<20 micron) did stage a slight recovery on the final day to claw back up to 10 cents leaving 20 micron and finer 15 to 25 cents back for the sale and 21s and broader 30 to 35 cents lower.

Skirtings followed the fleece room pattern with a cheaper opening session only to firm up on the final day.  The dwindling volume of <3% VM types were 5 to 10 cents cheaper while the heavier VM lots gave up 20 to 25 cents. Cardings took the biggest hit of any sector, a massive 61 cent collapse, to 1013; the largest weekly fall in this sector for over 2 years and from a high of 1100 at the end of February. Crossbreds also took a hit as <26s were unchanged while 28 and broader gave up 10 to 20 cents.

Another tough sale by anyone’s standards to finish a horror fortnight, especially after the great sale held in conjunction with the IWTO Congress in early April. As mentioned earlier, there was a major discrepancy with this sale’s anticipated totals. An estimation of 37,000 bales was given 2 weeks ago, then less than 24 hours later that had ballooned to 49,000 - a big jump due to the big rise in Sale 41?? Not quite, the estimation of 37,000 left Fremantle’s offering of 12,000 out. This wide variation in totals affected buyer sentiment giving the Chinese just the excuse they were looking for to sit out of the market to see how much further it would fall. Of course the rising exchange rate did us no favours either.      

The withdrawn rate escalated this week as 14% was pulled out leaving only 42,000 bales on offer and, with 15% passed-in, this saw only 35,500 bales actually sold to the trade.

The firm market on Thursday gives us hope that the bottom of the market may have been reached (for now). We sold a few passed-in lots this morning which is always a good sign. Next week’s 38,000 bale selection will be the smallest for 10 weeks and, if any reasonable quantity has been sold, buyers may well be caught a bit short, with a solid market to a touch dearer all the talk.

Main Buyers (This Week)

  

1

Techwool

3620

2

Global Wool Exp.

3594

3

Aust. Merino Exp.

2755

4

Fox & Lillie

2712

5

Tianyu Wool

2498

6

Lempriere (Aust)

2491

7

PJ Morris

2128

8

G Schneider

1651

9

Chinatex

1153

 

Eastern Market Indicators (AUD cents/kg clean)

1217 cents ê 24 cent compared with 15/04/2016

Northern Market Indicators (AUD cents/kg clean)

1239 cents ê 26 cents compared with 15/04/2016

AUD/USD Currency Exchange

0.7807 é 0.0146  compared with 15/04/2016

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=680223&A=Trackback
Trackbacks
Post has no trackbacks.