Weekly Market Reports


24 March 2017

admin Macwool - Friday, March 24, 2017

WEEKLY MARKET REPORT

Week Ending 24th March, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S38/16

This Week

M38/16

Last Sale

S37/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2411

2337n

2318

+93

1506

+905

18

2242

2212n

2235

+7

1450

+792

19

1945

1962n

1944

+1

1382

+557

20

1620

1623n

1638

-18

1331

+289

21

1484

1481n

1509

-25

1328

+156

22

1401n

1409n

1431n

-30

1318n

+89

26

1015

1036n

1015

0

977n

+38

28

745

736n

756

-11

824n

-79

30

575

583n

581

-6

699n

-124

MC

1227

1225n

1234n

-7

1080

+147


GOOD RAIN AND GOOD PRICES FOR SOME

The market was fully tested this week as up and down movements of various microns saw the EMI finish unchanged at 1546. In $US terms the shift was just 4 cents down to 1184 as the $A lost a bit of ground over the week to sit at 76.5 cents this morning. The big anticipated offering of 51,000 bales didn’t eventuate as 49,000 bales were offered - still the largest weekly selection since mid January. Fine types again led the charge as <17 micron rose 100 to 150 cents. 17.5 to 18.5s looked only 10 cents better while 19/19.5 were unchanged as the medium microns and coarser (20 to 22s) looked to have peaked to back off by 20 to 30 cents. The 1500 cent mark looks to be a barrier for 21s at the moment as it has broken through that price only 4 times over the past few weeks only to drop below it.

Skirtings followed a similar pattern of price movement as that of the fleece types. Finer than 17 micron that had less than 5% VM shot up by 70 to 100 cents with 18/19 microns adding 10 to 20 cents with coarser, burrier types back by a similar amount. Crossbreds also had an up and down sale as finer lots <26 micron were solid to 10 cents higher while 28s and broader slipped 5/10 cents. Cardings also seemed to take a breather from their meteoric rises over the past month as regional MCIs remained unchanged in the west and south while Sydney’s indicator lost 7 cents as locks and stains were quoted 10 cents off.

The rising market since Christmas has presented funding issues for buyers. Before the rise, finances were based on $1700/bale. Now it’s more like $2300/bale. Buyers can’t sit on big levels of stock. The liquidity of the market and ease of moving wool means what is bought today is usually offered and sold overnight to mills.

The surge of the super-fine types continues on almost unabated as the gap between them and the medium types widens. As we can see 21s are failing to stay above 1500 cents with price resistance and high levels of burr the main sticking points but, as we have seen in the past, there was resistance when 1200, 1300 and 1400 cents were on the radar for 21s, now just a distant milestone. The extra volume this week did allow buyers to be more selective led by Chinese indent buyers as the better style, finer types seem immune from any price resistance. Don’t forget Bred Well Fed Well workshops starting Monday at Louth, Tuesday at Brewarrina and Wednesday at Coolah.  46,000 bales are on offer next sale, everyone is holding their breath.

   Ag Concepts Fwd Prices at 24th March 2017

Micron

Date

Low

High

21

24-May-17

1455

1455

19

12-Jul-17

1800

1800

21

11-Oct-17

1390

1390

19

10-Jan-18

1675

1675


Main Buyers (This Week) 

1

Techwool

6350

2

Chinatex

5084

3

Fox & Lillie

4316

4

Tianyu Wool

4015

5

PJ Morris

3601

6

Aust Merino Exp.

3148

7

Lempriere

2543

8

Modiano

1919

9

Michell Aust.

1730

 

Eastern Market Indicators (AUD cents/kg clean)

1546 cents ó 0 cents compared with 17/03//2017

Northern Market Indicators (AUD cents/kg clean)

1641 cents é 5 cents compared with 17/03/2017

AUD/USD Currency Exchange

0.7657 ê 0.0028  compared with 17/03/2017

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