Weekly Market Reports


24 June 2016

admin Macwool - Friday, June 24, 2016

WEEKLY MARKET REPORT

Week Ending 24th June, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S52/15

This Week

M52/15

Last Sale

S51/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1532

1525

1534

-2

1530

+2

18

1505

1501

1512

-7

1462

+43

19

1471

1467

1476

-5

1393

+78

20

1435

1443

1420

+15

1352

+83

21

1423

1424

1398

+25

1338

+85

22

1402n

1412n

1379n

+23

1301n

+101

26

-

1091n

-

-9 (M)

1110n (M)

-19

28

784n

778n

786

-2

924

-140

30

686n

690n

703n

-17

826

-140

MC

1079

1075n

1084

-5

1096

-17

BRITAIN VOTES AND IT'S ARRIVEDERCI EUROPE!

 Another solid sale this week as buyers were greeted with the smallest national catalogue for 4 years (22,100 bales) as only the 2 East Coast centres were operating. The EMI added a modest 6 cents to 1285. The move in US$ terms was bigger - the largest shift in any direction for 12 weeks posting a 21 cent rise to 966 helped by the rise in the exchange rate to over 75 cents. Even with the market’s gain the market looked to have split into two. Finer indicators <19 micron were up to 5 cents cheaper bar the cracking FNF superior types that are few and far between commanding premiums of 40 to 150 cents higher than their indicators as lots from 2 Yass clients in our catalogue demonstrated - all off to Italy for processing. The broader indicators helped the market push into positive territory as 19.5s were in sellers’ favour with 20 to 23s 10 to 25 cents higher. Some of the low VM types (1 to 2%) even finished better than their indicators with the ever increasing volume of burrier types 20 to 30 cents back from last sale, but we still saw over a 95% clearance rate for fleece.

The smallest selection of skirtings in 12 months resulted in a lift of 5 to 10 cents for all types and descriptions with some carbonising (>15% and low VM<5%) lots adding up to 20+ cents. Cardings continued their cheaper trend despite the smallest weekly offering of this category (2,216 bales) since AWEX began market reporting over 20 years ago losing 5 cents to 1079 as all types gave up the 5 cent loss on the opening day. Crossbreds also suffered for the upward shift in the exchange rate as a 10 to 20 cent drop covered most types and descriptions.

The one and only factor dominating news this week is the British vote on exiting the EU. At latest reports the “exit” vote was at 52% to 48% to stay in the EU but still plenty of votes to count. This could have massive ramifications for Europe’s economy (and global) if the vote stays on course to exit as some reports from smaller cities keen to get out but Scotland and Nth Ireland are keen to stay in the EU. Due to the uncertainty being created several banks in London have turned off their electronic FX trading facilities. The exchange rate has been jumping around wildly today. The A$ hit 76.50 overnight to 75.25 at 9.00am but has collapsed this afternoon to 73.50. Global equities have galloped ahead as have the price of oil and iron ore.

The market has held up remarkably well considering the movements in the exchange rates and general consensus that the market would struggle prior to sales starting over the past 2 weeks. Countering this negativity is the critically low global supply and a few uncovered positions still outstanding and the 3 week winter recess looming in mid July.

The final sale of the season will be held next week, Sale 53!!! How can this be? Sale 1 started on a Wednesday, 1st July, 12 months ago and Sale 53 will finish on Thursday, 30th June, this situation helped by the leap year!! Only the wool trade could fit 53 weeks into a year. With the A$ well under 74 cents and just 32,000 bales next week the market could finish on a high.

Ag Concepts Fwd Prices at 17 June 2016

Micron

Date

Low

High

21

24-Aug-16

1380

1380

 

Main Buyers (This Week)

1

Techwool

2677

2

Fox & Lillie

2466

3

Aust. Merino Exp

2184

4

Lempriere (Aust)

1732

5

Chinatex

1500

6

Modiano

1352

7

Tianyu Wool

1049

8

PJ Morris

1021

9

United Wool

836

  

Eastern Market Indicators (AUD cents/kg clean)

1285 cents é 6 cent compared with 17/06/2016

Northern Market Indicators (AUD cents/kg clean)

1303 cents é 3 cents compared with 17/06/2016

AUD/USD Currency Exchange

0.7521 é 0.0128  compared with 17/06/2016

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