Weekly Market Reports


22 March 2019

admin Macwool - Friday, March 22, 2019

WEEKLY MARKET REPORT 

Week Ending 22nd March, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S38/18

This Week

M38/18

Last Sale

S37/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2538

2458

2560

-22

2776

-238

18

2457

2383

2472

-15

2348

+109

19

2331

2317

2340

-9

2074

+257

20

2298

2282

2309

-11

1960

+338

21

2283n

2282

2291n

-8

1914n

+369

26

1408n

-

1411n

-3

1168

+240

28

1165n

1159

1141 (M)

+18 (M)

842

+323

30

-

929

921 (M)

+8 (M)

595 (M)

+334 (M)

MC

1172

1151n

1238

-66

1330n

-158

CROSSBREDS SOLID - MERINOS FALL!

Another week and more falls for the wool market. For the 4th sale in a row the market was in retreat as all of the advances of S34 (59 cents) amidst the SA foot and mouth outbreak have been eroded as the AWEX EMI lost another 16 cents to add to the 48 cent losses for the 3 previous sales. The only sector to escape any losses was XBs. The ascending A$, peaking at 71.5 cents, a lift of 1.22% coupled with the ongoing poor selection gave buyers enough ammunition to let the market drift as 18 micron and broader gave up 10/15 cents while < 18s fell by 25 cents with only the very best style fleece wools with high nk/t readings and low mid-breaks escaping any discounts. The fleece offering that came under a style 6 or 7 (average to inferior topmaking styles) made up 15% of the volume, the highest weekly level since June 2010 as the grip of drought seems to tighten up.

Most room 2 types fared worse than their merino fleece counterparts. Skirtings took hits of 30/50 cents for the low VM lots (<2%) with burrier, poorer style types giving back 80 cents. Cardings also took a major hit as LKS/STN lost 40 to 70 cents while STN collapsed by 10 to 120 cents. As mentioned earlier, the XB sector was the only one to go through the sale unscathed as most microns were solid to 20 cents dearer.

All the talk on the showfloor centres around the selection and how poor it is with no real improvement in the short term even if the drought were to break now. Some fleece lines are yielding below 50% with these becoming an issue in scouring as water replacement frequency increases and sludge disposal costs escalate. There are no issues further down the processing line if scouring is effective as topmakers can use these wools and take advantage of the price discounts as the finished product is still suitable for worsted yarn manufactures.

National volumes look to have stagnated around the 40,000 bale/week mark as many growers shear and offload sheep to escape what could be another tough winter as low finances and ability to source supplement feed is forcing growers into this dire situation of selling ewes. Quantities are expected to decrease rapidly after Easter. The market looks to be close to the bottom of this price cycle according to some buyers. Let’s hope so and pray that “Trevor & Veronica” can get together and deliver what so many desperately need - a massive rain event!!

            Ag Concepts Fwd Prices as at 22 March 2019               

Micron

Date

Low

High

21 27-Mar-19 2260 2260 

Main Buyers (This Week)

1

Techwool

4749

2

Tianyu Wool

4248

3

Fox & Lillie

3619

4

Seatech Ind.

3534

5

Kathaytex

2671

6

Endeavour Wool

2605

Eastern Market Indicators (AUD cents/kg clean)

1963 cents ê 16 cents compared with 15/03/2019

Northern Market Indicators (AUD cents/kg clean)

2007cents ê 20 cents compared with 15/03/2019

AUD/USD Currency Exchange

0.7145 é 0.0085 compared with 15/03/2019

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