Weekly Market Reports


24 January 2014

admin Macwool - Friday, January 24, 2014

WEEKLY MARKET REPORT

Week Ending 24th January, 2014

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S30/13

This Week

M30/13

Last Sale

S29/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1408

1373

1397

+11

1458n

-50

18

1345

1335

1340

+5

1379

-34

19

1302

1301

1281

+21

1306

-4

20

1272

1263

1243

+29

1223

+49

21

1263

1261

1237

+26

1209

+54

22

1252n

1255

1229n

+23

1191

+61

26

780

772n

757n

+23

803n

-23

28

693

683

676

+17

613

+80

30

654

641

635

+19

577

+77

32

560n

559n

551n

+9

489n

+71

MC

824

833n

812

+12

729

+95

 IT’S ON AGAIN!

A much smaller offering of 11,000 less bales than last week saw increased interest across all sectors. The EMI rise of 17 cents for the week has the market at very close to the 12 month high set in December. Most of the gains were made over the early part of the week as the ship steadied on Thursday with only fine wool still moving up. Market support was very keen on well measured lines particularly over 40n/kt with low mid breaks. Trade competition was widespread with European buyers quite active providing good competition for the usual Chinese buyers.

Techwool was easily the volume buyer this week taking 15.7% of the 43,000 sold and topping the list in each of the four categories being merino fleece, merino skirtings, oddments and crossbreds. Of the European buyers, Modiano (who have a mill in Czechoslovakia) were very active on good skirtings and some merino fleece; G. Schneider was quite active on crossbreds and merino fleece; and New England Wool, on lines where the specs fit their types, were very dominant. A couple of companies who have been around for some time have had some staff injections and expanded their normal interests. H Dawson who are an English firm and long established in the NZ and South American markets have now taken on the ex Viterra team and have commenced buying and Melbourne based Australian Merino Exports have now employed permanent staff in Sydney which we see as a positive sign for their intentions.

So maybe the rise we expected two weeks ago was just delayed and this week was the beginning of a strong run - certainly smaller offerings and a lower dollar have combined to make the market more attractive and, over the next few weeks, the offerings will range from 39,000 to 50,000 bales with a specialty fine wool sale included.

The next couple of weeks may also be a good time for growers selling later in the year to have a close look at the forwards. This week there were trades out till May at around the current level of 1260 which equates to around 900c greasy or close to $1700 bales for a reasonable fleece line. After May offers drop to 1200 right through till Xmas, but a push on the market will see the forward prices also jump. It is worth remembering that any price above 1250, whilst it has happened over the last few years, has not been sustained for very long.

This week we sold the last of the Collaroy clip from Cassilis, as the property as been sold by the Forgac’s family to beef cattle interests. This property has had a very long association with the wool industry, not just with us. Collaroy was established as a stud in the mid 1830s and was one of the original holdings in the Merriwa/Cassilis district. The woolshed, of around 50 stands, can be seen from the highway and is a relic of the early days of our industry. The remnants of the old steam driven overhead gear and wool press is also still there and we were always proud to be involved with the marketing of the woolclip.

Next week only a small offering nationally of 39,000 bales should keep buyers on the edge of their seats as Macwool offers on Thursday.

Ag Concepts Fwd Prices at 24 January

Micron

Date

Low

High

21

30-Apr-14

1270

1270

21

12-Nov-14

1200

1200

                   

Main Buyers (This Week)

1

Techwool

6754

2

Chinatex (Aust)

3671

3

Fox & Lillie

3171

4

Tianyu Wool

2868

5

Modiano

2710

6

Aust. Merino Exp

2376

7

Lempriere

1918

8

PJ Morris

1142

9

Vic Wool Proc.

1029

  

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

1128 cents é 17 cents compared with 17/01/2014               0.8797 ê 0.0016 compared with 17/01/2014

Northern Market Indicators (AUD cents/kg clean)

1152 cents é 19 cents compared with 17/01/2014              

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