Weekly Market Reports


23 October 2015

admin Macwool - Friday, October 23, 2015

WEEKLY MARKET REPORT

Week Ending 23rd October, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S17/15

This Week

M17/15

Last Sale

S16/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1463

1432n

1419

+44

1301

+162

18

1447

1411

1401

+46

1264

+183

19

1342

1338

1286

+56

1183

+159

20

1283

1279

1229

+54

1141

+142

21

1273

1270

1216

+57

1133

+140

22

1256n

1249

1207n

+49

1128n

+128

26

1013n

1004n

1013n

0

819n

+194

28

848

847

826

+22

676

+172

30

804

799

781

+23

652

+152

MC

1072

1061

1060

+12

788

+284

AT LAST, SOME GOOD NEWS!!

The market performed a backflip this sale with a good recovery putting our prediction of another flat or poor week to bed. All commodities, including wool, fluctuate in price - they never keep falling or rising. We were confident that the market would recover and WHEN, not IF, was the thing no-one could pin point. After dropping nearly 100 cents over the past 5 weeks the EMI recovered more than 3% adding 36 cents to break through the 1200 cent barrier, now 1205. Signs were good early in the week as the NZ offering looked to be more keenly sought after, even if the Kiwis passed-in 31%. Momentum kept building through the sale with Thursday having the biggest increases. At the final lot rises across most microns (17 to 23s) were 35 to 57 cents to the good with 16.5 gaining 24 cents. Specialist types in the superfine range continue to command significant price premiums (100+ cents) over their lower quality counterparts although these also recovered some much lost value this sale.

Room 2 types took the lead from the fleece room as skirtings recorded healthy gains across the 2 selling days. 19 micron and finer with 3% < VM jumped 25 to 35 cents while the broader, burrier types were quoted 20 to 25 cents better. Crossbreds also recovered some of their big losses over the past few sales - 25s and 28 to 30 microns posted 20 cent gains as, surprisingly, 26 and 32 micron were unchanged. Cardings also took the positive lead from the other sectors. After a sluggish opening session this sector roared to life with all types adding 10 to 15 cents on the final day.

As is nearly always the case the sudden change in sentiment came out of the blue. It is usually the case of when, not if, as to market movements and finally we saw some upward shifting of the market. Overseas enquiry was keener as was local interest and the exchange rate has come down from its highs to low-mid 72 cents and the forecast of offerings in the low 40,000 bale range for the next 3 weeks aren’t spooking the buyers. When they need to buy wool, exchange rates, quantity or quality of the selection doesn’t matter! Growers warmed to the new price levels as over 95% of the national catalogue was sold with Fremantle leading the way to clear over 98% of their selection - maybe a good sign that the market still has some more left in it. Wooltrade sales have also been strong indicating buyers are still keen to source wool before next week’s auction starts in Melbourne on Tuesday.

Ram sales are winding up in this area and focus will move to southern parts of the state and into VIC. Some results of interest are: local Wellington stud, “Allendale”, topped out at $4,400 for a total clearance to average $1,400; South of Wellington, “Glenwood” also sold all rams on offer to average $1,465 with a top price of $3,200. Gilgandra stud, “Wyuna”, gained a top price of $3,000 to average $1,260 (an increase of $150 on last year); “Egelabra” also cleared all their rams to average $2,100 with a top price of $12,000. One sale of note down south was “Grogansworth” at Bowning clearing over 90% of their catalogue to achieve a top price of $3,200 (twice) to average $1,575. Most studs are reporting higher averages, top prices and better clearances. Great results!!

Just a reminder to all our growers that Woolpoll 2015 is open and voting will close next Friday, 30th October. Every grower who has paid wool levies of $100 or more over the past 3 years is eligible to vote. The current levy of 2% is recommended to be the option to be retained. AWI boasts a $2.90 return to woolgrowers for every $1 invested with the status quo of 60:40 split for marketing/R &D to remain. Trade talk is another solid week to come as types with the right specs to come under buying pressure again. Go the Wallabies (and South Africa)!!

 

Eastern Market Indicators (AUD cents/kg clean)

1205 cents é 36 cents compared with 16/10/2015

Northern Market Indicators (AUD cents/kg clean)

1236 cents é 38 cents compared with 16/10/2015

AUD/USD Currency Exchange

0.7233 ê 0.0118  compared with 16/10/2015

 

Main Buyers (This Week)

1

Techwool

5404

2

Chinatex

3608

3

Fox & Lillee

3535

4

Lempriere

3091

5

Modiano (Aust)

2827

6

Global Wool Exp.

2017

7

PJ Morris

2004

8

Michell Wool

1830

9

Tianyu Wool

1792


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