Weekly Market Reports


23 May 2014

admin Macwool - Friday, May 23, 2014

WEEKLY MARKET REPORT

Week Ending 23rd May, 2014

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S47/13

This Week

M47/13

Last Sale

S46/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1262

1249n

1268

-6

1315n

-53

18

1201

1199

1196

+5

1237

-36

19

1169

1178

1153

+16

1206

-37

20

1155

1159

1132

+23

1162

-7

21

1155

1151

1123

+32

1147

+8

22

1138n

1141n

1110n

+28

1146n

-8

26

769n

-

745n

+24

809n

-40

28

669

679

661

+8

615

+54

30

627

633n

629

-2

566

+61

MC

791

793

786

+5

758

+33

SMALLER QUANTITIES, FALLING DOLLAR DRIVES RECOVERY

A change of fortune as buyer sentiment changed to send the market into recovery mode. Our suspicions that the market may have put the brakes on as far as falling were confirmed when Fremantle was just in buyers’ favour last Thursday when compared to the big declines in the market on the Eastern seaboard hours earlier. Wooltrade sales were solid early this week and a rise in the market was confirmed when sales opened on Wednesday. Momentum built as the sale progressed as a slightly dearer opening day led to good buyer enquiry on Thursday to have both centres in the east record double digit gains. The EMI rose by 19 cents to 1039, recapturing some of last sale’s losses. Most to benefit were the medium types, 19 to 23s, by 15 to 30 cents. Finer microns were more subdued as 17.5 to 18.5 saw a 5 to 10 cent lift as, in yet another hit for super-fine types, 17s and finer lost 5 to 10 cents. Growers welcomed the rise as 91% of fleece was cleared to the trade as a top price for the sale was 1750 cents for a 13.8 micron lot.

Skirtings took their lead from the fleece room (albeit more subdued) as most types and descriptions were quoted up to 10 cents better than last week with some selected best style low vm lots adding up to 20 cents for the sale. Oddments rallied, especially in Melbourne, with a 15 cent jump as both MCIs on the east coast now closing in on the 800 cent mark, now at 791 and 793. All types and descriptions posted gains of 5 to 10 cents across the board. Crossbreds had a reasonable sale as the broader edge looked unchanged with 28s up by 10 cents with 26s climbing 25 cents in Sydney and a whopping 50 cents in Melbourne.

A good week to sell wool as a combination of small offerings and a fall in the exchange rate of 1.5 cents to 92.3 on Wednesday was too much for the exporters to ignore. A reduction of 10,000 bales from last sale to 30,000 was the 2nd smallest sale of the season with Fremantle in a series of 1 day sales - just 5,400 bales this sale. With the medium to broader microns outdoing the finer indicators this week the gap between fine and broad is narrowing. At 1201 cents the 18 micron indicator is only 70 cents higher than 23s and 17s, only 105 cents ahead of 21s. This closeness over a wide range of types almost unbearable for the long-suffering fine wool growers with the forecasts of any sort of decent recovery in this sector a long way off.

Hopefully the market can keep going on this upward trend as we head into winter and the forecast of small weekly quantities lucky to average 35,000 for the foreseeable future and the exchange rate can stay towards the low 90s certainly helping the market’s cause. We offer a small catalogue of 400 bales first up on Thursday.

Ag Concepts Fwd Prices at 23 May 2014

Micron

Date

Low

High

21

06-Aug-14

1165

1165

21

24-Sep-14

1150

1150

 

Main Buyers (This Week)

1

Fox & Lillie

3488

2

Techwool

2908

3

Aust. Merino Exp

2441

4

Lempriere (Aust)

2255

5

Chinatex (Aust)

1812

6

Tianyu

1534

7

PJ Morris

1411

8

 Modiano

1295

9

Michell

926

 

Eastern Market Indicators (AUD cents/kg clean)                                    AUD/USD Currency Exchange

1039 cents é 19 cents compared with 16/05/2014                                 0.9270 ê 0.0110 compared with 16/05/2014

Northern Market Indicators (AUD cents/kg clean)

1052 cents é 15 cents compared with 16/05/2014

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