Weekly Market Reports


22 January 2016

admin Macwool - Friday, January 22, 2016

WEEKLY MARKET REPORT

Week Ending 22nd January, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S30/15

This Week

M30/15

Last Sale

S29/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1569

1555

1554

+15

1297n

+272

18

1550

1532

1531

+19

1273

+277

19

1464

1451

1451

+13

1194

+270

20

1409

1402

1391

+18

1145

+274

21

1403

1399

1384

+19

1136

+267

22

1387n

1385

1369n

+18

1119n

+268

26

991n

990n

978

+13

832n

+159

28

842

838

834

+8

762

+80

30

773

764

778

-5

722

+51

MC

1149

1156

1140

+9

839

+310

BIG VOLUMES, NO DRAMA!

Wool growers offering wool in this sale would’ve been holding their breath early in the week as the largest wool sale in 5 years commenced. This week’s 60,000 bale catalogue followed on from last sale’s 54,000 offering making it the biggest fortnight of wool sales since November, 2010. The A$ spent a few days below 69 cents, enough to convince exporters to step in and buy despite the big offering and a history of not being able to finance such a large catalogue. The market moved higher as the sale progressed with all indicators adding 10 to 20 cents to their values, bar 18.8s up by 30 cents. Most emphasis was on the low VM, high nkt lots as some high VM over-long types with high mid-breaks struggled to maintain levels achieved in the opening sale of the year.

Skirtings were more subdued in their movements as 18 micron and finer were quoted as 5 to 10 cents dearer for lots >4% VM with all other types fully firm for the week. Cardings continued to strengthen as this sector heads back to the record levels we saw in the winter. All types added 10 to 15 cents to their values with the 3 centres MCIs around the 1150 cent mark - astounding money for these types. Crossbreds reversed the losses of last week as medium types (26/28 micron) added 10 to 15 while other microns remained unchanged. The % of crossbred wool fell to 27% of the total offering on the eastern seaboard but eclipsed last sale by 300 bales. Despite popular opinion of peak offerings of crossbreds from October to November, the peak period is December to January. This could be due to an increase in crossbred lambs being shorn as Coles and Woolworths are reluctant to buy woolly lambs.

Despite the global turmoil of stock markets and the collapsing commodity market, the wool market seems to resist the severity of reactions in those areas. At $30US/barrel, (this equates to 12 cents US/litre) oil is fast approaching an unviable level. In $AU this equates to about $40/barrel or 16 cents/litre!! The OPEC countries’ reluctance to scale back oil production in the hope to squeeze other oil producing countries out could well be working but is damaging global economic growth, coupled with the hint of more interest rate rises in the US sending stock markets into a spin (downwards!!). Adding to stock market turmoil China’s growth did slow to 6.8% in the final quarter of 2015, its full year growth the lowest in 25 years. Quantities scale back to mid 40,000 over the next few sales but the $AU jump back to 70 cents may see buying urgency slow (as it did late on Thursday) despite some outstanding contracts to fill.        

Ag Concepts Fwd Prices at 22 January, 2016

Micron

Date

Low

High

Micron

Date

Low

High

28

10-Feb-16

822

822

19

6-Jul-16

1440

1440

19

13-Apr-16

1435

1435

21

22-Feb-17

1300

1300

 

Main Buyers (This Week)

 

1

Techwool

7468

2

Global Wool Exp.

6634

3

Fox & Lillie

5487

4

Chinatex

5149

5

Tianyu Wool

4076

6

Lempriere (Aust)

4000

7

PJ Morris

3317

8

Modiano

2745

9

Kathaytex (Vic)

1511

 

 

Eastern Market Indicators (AUD cents/kg clean)

1296 cents é 14 cents compared with 15/01/2016

Northern Market Indicators (AUD cents/kg clean)

1326 cents é 12 cents compared with 15/01/2016

AUD/USD Currency Exchange

0.6905 ê 0.0035  compared with 15/01/2016

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