Weekly Market Reports


22 November 2019

admin Macwool - Friday, November 22, 2019

WEEKLY MARKET REPORT 

Week Ending 22nd November, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S21/19

This Week

M21/19

Last Sale

S20/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2008

1963

2027

-19

2472

-464

18

1885

1883

1920

-35

2343

-458

19

1781

1788

1818

-37

2204

-423

20

1738

1734

1773

-35

2172

-434

21 1729n 1723 1763n -34 2158 -429
26 1200n 1196n 1204n -4 1245n -45

28

899n

884

910n

-11

845n

+54

30

-

704

724 (M)

-20 (M)

734 (M)

-30 (M)

MC

1052n

1079n

1053n

-1

1180

-128

SAME OLD, SAME OLD ……

The recent pattern of “up and down” for the wool market continued on this series as the AWEX EMI slipped by 19 cents to 1555 - the exact amount of the previous week’s gains. In $US terms the downward shift was a similar figure, a 13 cent loss to 1057 as the FRX moved above 68 cents on Wednesday only to fall back below that level today. Last Thursday’s falling market was the precursor to this sale as falls across the 3 centres on Wednesday were followed by a more positive tone in the final session. All fleece microns suffered, falling by 20 to 40 cents with only the very odd best type or NM lot attracting any sort of premium up to 60 cents. Skirtings again looked to be far less affected by the ebb and flow of demand of their fleece counterparts and sold to sellers’ favour. Cardings also had an uneventful sale with some types in buyers’ favour to have the MCI shed just 1 cent. Crossbreds followed last sales pattern shaving up to 10 cents from their values.

The current price movement of the market continues on. The practice of exporters writing some new business and  buying wool and pushing up prices by 50 to 80 cents then being in the situation of the market going “too high too fast” has them immediately on the back foot and prices retract just as quickly as they were pushed up. The price fluctuation over the past month or so has been around 40 cents (1550 to 1590) as the EMI has been unable to break through the 1600 cent mark. When it does and if that level can be maintained is anyone’s guess.

The Australian Wool Production Forecasting Committee met this week and downgraded its shorn wool production for this season to 272mkg a 9.2% decline from 2018/19, the lowest since 1923/24. The 2 main reasons for this decline are higher slaughter rates (resulting in record prices for lamb and mutton) due to increased demand for red meat caused by the global outbreak of African Swine Flu which has resulted in 25% of the world’s pig population eradicated; and the persistent drought lowering numbers to 67 million, a 7.5% fall from 2018/19.

AWI held their AGM this morning and voting was conducted for the 3 vacant spots on the board. Of the eight candidates up for election, 2 new directors were voted in (Michelle Humphries and Noel Henderson) with incumbent director, David Webster, holding his position. One time Chairman, Wally Merriman, failed in his bid to be re-elected and Haddon Rig principal, George Falkiner, also was unsuccessful in his bid for a spot on the board. Fremantle’s firming market on Thursday bodes well for next week’s sale but how much will it rise??

Southern Aurora Fwd Prices              

Micron

Date

Low

21

December 19

1720

Main Buyers (This Week)

1

Techwool

5147

2

Endeavour Wool

2845

3

Aust. Merino

2679

4

Fox & Lillie

2623

5

Kathaytex Aust.

1830

6

PJ Morris Wool

1373


Eastern Market Indicators (AUD cents/kg clean)

155 cents ê 19 cents compared with 15/11/2019


Northern Market Indicators (AUD cents/kg clean)

1591 cents ê 19 cents compared with 15/11/2019

   

AUD/USD Currency Exchange

0.6795 ê 0.0003  compared with 15/11/2019

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