Weekly Market Reports


25 May 2018

admin Macwool - Friday, May 25, 2018

WEEKLY MARKET REPORT

Week Ending 25th May, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S47/17

This Week

M47/17

Last Sale

S46/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2834n

2888n

2786n

+48

2265

+569

18

2501

2495

2437

+64

2148

+353

19

2261

2281

2204

+57

1891

+370

20

2193

2202

2143

+50

1590

+603

21

2186n

2189

2128

+58

1477

+709

22

2174n

2185

2115n

+59

1419n

+755

26

1438

1431n

1396n

+42

1045n

+393

28

999

995

1009

-10

755n

+244

30

695

716

703

-8

563n

+132

MC

1449n

1491n

1422

+27

1180n

+269

CAN THE EMI CRACK 2000???

The market kept marching towards new records this sale as the AWEX EMI closed in on the 2000 cent mark finishing this series at 1983, a 40 cent appreciation from last sale. The rise was just as good in US$ terms gaining 39 cents to 1501 as the FRX swayed in the 75 cent range all week - this morning at 75.70 cents. A few buyers thought the frantic rises over the past 2 weeks would steady to have a market that could be slightly cheaper given the rapid rises we have seen. That wasn’t the case as the market had similar gains on both days to see all microns add 50/70 cents regardless of style, yield or VM.

Skirtings weren’t to be outdone either as all types and descriptions were rock solid with 18/19 micron up to 5% VM lifting by 30 to 40 cents. Cardings kept up with the combing sector of merinos with the 3 centres averaging 30 cent rises as all types added 20 to 40 cents to their previous values as the only weeks the MCIs have been higher was the pre-Christmas sale and the 2 opening sales in January. Crossbreds kept the same pattern as the few previous sales, < 26 micron up to 40 cents dearer, 28s and broader 10 cents off the pace.

Another record breaking sale as 17.5 to 22s are at all-time record levels. The EMI is 33% (488 cents) higher than a year ago and a massive 691 cents (53%) better than this time 2 years ago. Since Easter the EMI has rallied by 211 cents. All the talk is about quantity, the lack of it now and the looming tighter supply in the spring and into next year as the crippling drought gives no signs of letting up. The past 3 sales and the next 3 will see an average of just 32,000 bales/week, far below the quantity needed to supply the current levels of demand. This week and next has Fremantle holding 1 day sales then missing a sale to add to exporters’ woes about supply. The highlight of the recent gains has been the 19.5 and coarser microns as the gap between 19 and 22 is averaging 95 cents across the 3 centres - the gap at Easter was 180 cents.

Can the demand be maintained and higher costs passed down the pipeline all the way to the retailer?? The short term answer might be yes but long term, “who knows”. Plenty of growers heard the country hour interview where one Chinese processor was very confident through till spring and word from some fine wool processors that all is good in the sub 19 micron sector. Just 31,000 bales up next week. Will the EMI crack 2000 cents??                   

                        Ag Concepts Fwd Prices as at 25 May, 2018

Micron

Date

Low

High

21

27-Jun-18

2080

2080

21

26-Aug-18

1920

1945

21

10-Oct-18

1900

1900

 

Main Buyers (this week)

1

Techwool

3821

2

Fox & Lillie

3727

3

Seatech Ind.

2975

4

Aust. Merino Exp.

2572

5

Kathaytex Aust.

2176

6

Endeavour Wool

2027

7

Tianyu

1646

8

PJ Morris

1567

9

Modiano

1412

Eastern Market Indicators (AUD cents/kg clean)

1983 cents é 40 cents compared with 18/05/2018

Northern Market Indicators (AUD cents/kg clean)

2033 cents é 38 cents compared with 18/05/2018

AUD/USD Currency Exchange

0.757 é 0.0043 compared with 18/05/2018


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