Weekly Market Reports


23 September 2016

admin Macwool - Friday, September 23, 2016

WEEKLY MARKET REPORT

Week Ending 23rd September, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S12/16

This Week

M12/16

Last Sale

S11/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1577

1562

1605

-28

1462

+115

18

1549

1542

1580

-31

1437

+112

19

1491

1484

1517

-26

1356

+135

20

1410

1403

1452

-42

1294

+116

21

1395

1391

1438

-43

1278

+117

22

1386n

1386n

1416n

-30

1269n

+117

26

1145n

1145

1175n

-30

1145n

0

28

748

748

788

-40

934

-186

30

585

585

625

-40

886

-299

MC

1062n

1062n

1053

+9

1097

-35

LACK OF SUPPLY FORCES MARKET DOWN???

 

Once again the direction of the market was nearly impossible to pick as outside influences dictated play. The market suffered from a rebound in the exchange rate of almost 2 cents, this being enough to see buyers pull back on their prices. The AWEX EMI fell sharply, a 24 cent fall to 1287 this, the largest weekly movement since early June. Also on the radar was the question of quantity, not too much, but not enough!! Falls were across the board as <18.5 gave up 20 to 30 cents but the better spec types in these micron ranges (even up to 2% VM) made 15 to 30 cents higher than their indicators. The medium to broad microns (19 to 24) recorded the largest falls giving up 25 to 45 cents.

Skirtings looked to be less affected as losses ranged from 5 to 15 cents depending on VM and style. Cardings bucked the falling trend of all other sectors as the MCI added 9 cents to its value (now 1062) as most types were 5 to 15 cents to the good. Crossbreds undid their good work over the past month by shedding 30 to 40 cents across the board.

For buyers to say that a shortage of wool is now a concern (and a factor in the falling market) is quite staggering. There are always plenty of grumblings when volumes balloon out by 10/15%, this usually following a sharp rise in the market. This sales roster was published as 42,000 last Friday to a final offering of 39,590 a fall of just 5.5%!!  The passed-in rate doubled to 13%. This, coupled with withdrawn wool, saw only 34,300 bales cleared to the trade. If they’re worried about securing wool from a dwindling quantity there is only one thing to do, bid up or miss out!! Year to date quantities show more wool offered this season than last by 24,000 bales, an increase of 7%. Their thinking hard to comprehend at the best of times!!

Ram sales continue on despite the rain threatening to wash some out. A few results from local studs: Parkdale SRS stud towards Collie cleared 100% for a top of $3,000 to average $1,420; Yeoval stud Gullengamble cleared 92% of the 170 rams offered to average $1,915 with a top price of $6,750; and Langdene from Dunedoo cleared 98% of their offering with a top of $12,000 to average $3,150.

Next week sees the 2nd designated super-fine sale of the season and, if this week is any guide, growers will be nervous about the outcome as the national catalogue winds back to 35,000 bales. Wet weather is playing its part in slowing wool receivals to a walk.

Ag Concepts Fwd Prices at 23 September 2016

Micron

Date

Low

High

21

21-Sep-16

1410

1410

21

8-Mar-17

1377

1377

 

Main Buyers (This Week)

                    

1

Fox & Lillie

4285

2

Lempriere (Aust)

3555

3

Techwool

3308

4

PJ Morris

2851

5

Aust. Merino Exp

2439

6

Chinatex

2340

7

Tianyu Wool

2262

8

Michell Aust

1163

9

United Wool

1085

  

Eastern Market Indicators (AUD cents/kg clean)

1287 cents ê 24 cents compared with 16/09/2016

Northern Market Indicators (AUD cents/kg clean)

1316 cents ê 24 cents compared with 16/09/2016

AUD/USD Currency Exchange

0.7650 é 0.0186  compared with 16/09/2016

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