Weekly Market Reports


25 January 2019

admin Macwool - Friday, January 25, 2019

 WEEKLY MARKET REPORT 

Week Ending 25th January, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S30/18

This Week

M30/18

Last Sale

S29/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2538

2497

2523n

+15

2684

-146

18

2432

2434

2407

+25

2345

+87

19

2313

2283

2304

+9

2101

+212

20

2277

2246

2256

+21

1900

+377

21

2245n

2235

2225

+20

1785

+460

22

-

2213n

2202 (M)

+11 (M)

1697 (M)

+516 (M)

26

1298n

1307

1339

-41

1046

+252

28

934n

945

941n

-7

735

+199

30

-

741

719 (M)

+22 (M)

560 (M)

+181 (M)

MC

1186

1151n

1202

16

1334n

-148

LESS WOOL, LITTLE RAIN, MORE DUST

Last week’s predictions of a stronger market were spot on in most categories, particularly in the Northern market as all merino fleece micron indicators posted reasonable gains. The crossbred sector along with cardings showed some resistance - not really that surprising as 26 micron surged 134 cents in the preceding two weeks. Some analysts are saying that the Chinese are struggling to keep machinery running, some at 50% operation and are buying crossbred wool because it is cheaper hoping to sell it in blended form to keep the doors open. Seasonally, China has fallen from 76% to 71% of the offering; India has edged up to 7% with Italy 6% and Czech Republic (Modiano) with 4%.

I know we talk about lower offerings most weeks but the further we go this season the more this plays out and there is constant speculation about how the market will react as it continues to decline. One reaction we are seeing as the year unfolds is the competition on well-measured wool (particularly lower VM types) and who is buying them. In the last few weeks we have seen some well grown western division clips with good length (80-90mm) and high NKT receiving very strong competition and from buyers like New England Wool (Barberis and Reda) who normally focus on more traditional fine wool types. Many of the typical fine wools are a lot finer than normal and many under 35 NKT with high mid-breaks. Removing burry hind legs and keeping the fleece portion as low as possible is a real winner this season, if you can get it under 2%.

The other feature worth noting this season is the increasing premiums for non-mulesed wool. It’s been a long time coming but non-mulesed lines which also carry other favourable specs have been attracting greater competition from a wider audience of buyers. The other factor with these wools is that more and more of them are contracted forward so they don’t figure in the most recent price analysis.

Next week nationally 40,629 bales will be offered with just 8,929 to be offered in Sydney. Macwool will offer 746 bales on Thursday. Have a good hot Australia Day weekend!

Ag Concepts Fwd Prices as at 25 January 2019

Micron

Date

Low

High

21

22-May-19

2165

2165

 21  26-June-19 2150 2160 

Main Buyers (This Week)

1

Techwool

4187

2

Seatech Ind.

4005

3

Tianyu

3609

4

Modiano

2961

5

Aust. Merino

2907

6

Kathaytex

2141

Eastern Market Indicators (AUD cents/kg clean)

1927 cents é 4 cents compared with 18/01/2019

Northern Market Indicators (AUD cents/kg clean)

1970 cents é 10 cents compared with 18/01/2019

AUD/USD Currency Exchange

0.7123 ê 0.0028 compared with 18/01/2019

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=736327&A=Trackback
Trackbacks
Post has no trackbacks.