Weekly Market Reports


25 November 2016

admin Macwool - Friday, November 25, 2016

WEEKLY MARKET REPORT

Week Ending 25th November, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S21/16

This Week

M21/16

Last Sale

S20/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1742

1719n

1667

+75

1511

+231

18

1713

1692

1636

+77

1485

+228

19

1636

1616

1570

+66

1404

+232

20

1515

1508

1451

+64

1338

+177

21

1442

1430

1383

+59

1321

+121

22

1412n

1406

1368n

+44

1309n

+103

26

967n

976n

985n

-18

1028n

-61

28

680

675

668

+12

868

-188

30

573n

576n

560

+13

814

-243

MC

1123n

1150

1103n

1123n

1087

+36

MARKET ON FIRE

Buyers took “no prisoners” this week as buying at times resembled Boxing Day sales as the rush to secure wool was frantic with, every so often, price being almost insignificant. The 49 cent rise in the EMI was double last sale’s increase (24 cents) to 1363 - a 17 month peak and the largest weekly jump in the same period. In $US terms the bounce was 22 cents to 1005. The upward trend was across all microns, types and styles - 45 cents up to an 80 cent hike for 16.5s. The eastern seaboard cleared 99.5% of the fleece offering (94 bales passed-in) from 17,000 offered. One downside was the heavier VM fleece lots, <4% looked to escape any real discounting but >4% actually cheapened up due to very limited demand.

Skirtings outdid their fleece counterparts as buyers pushed the <18 micron below 5% VM up by 85 to 100 cents with the broader, burrier types 60/70 cents to the good selling 98.5% as only 78 bales failed to sell from 5035 up for sale. Cardings continued on their merry way with all types adding 10 to 30 cents as the 3 centres’ MCIs range from 1123 to 1150, closing in on the record levels set in January. Crossbreds were also caught up in the buying frenzy but far more subdued. 26s actually lost 20 cents while all other microns gained 5 to 15 cents. The size of the XB offering (41% in Sydney and Melbourne) weighing heavily on that sector and demand nowhere near the level of 12 months ago.

A great week for merino sellers with low global greasy stocks in front of machinery and favourable exchange rates and impending 3 week Christmas recess driving the bull-run. The $A fell to 73.2 cents as the $US surged to 13 year highs against most currencies as the Dow Jones goes on a record breaking run as the 3 key commodities (oil, coal and iron ore) continue their price recovery. Manufacturers trading in Euros were at a disadvantage as that currency rose by 4% against the $US but, looking at the demand for <19 micron, hardly a concern as a big superfine offering looms next week.

For the 4th sale in a row volumes were within 330 bales (47,000). This stable figure and the US elections ancient history, people are confident going into 2017 with strong US data (home sales at their highest annual rate in 10 years), an impending rate rise and widening bond differentials as investors warm to Trump’s policies that will drive growth and inflation. Most experts predict a solid market at the very least as Chinese interest is good and still a few outstanding forward commitments to cover and no explosion in volumes.

Ag Concepts Fwd Prices at 25 November 2016

Micron

Date

Low

High

21

7-Dec-16

1427

1430

19

25-Jan-17

1555

1555

21

22-Feb-17

1410

1410

21

12-Apr-17

1400

1410

 

Main Buyers (This Week) 

1

Techwool

7609

2

Fox & Lillie

5598

3

Chinatex

3120

4

Tianyu

3119

5

Lempriere (Aust)

2751

6

Aust. Merino Exp

2635

7

PJ Morris

2600

8

Kathaytex (Aust)

2009

9

Kathaytex (Vic)

1709

 

Eastern Market Indicators (AUD cents/kg clean)

1363 cents é 49 cents compared with 18/11/2016

Northern Market Indicators (AUD cents/kg clean)

1418 cents é 59 cents compared with 18/11/2016

AUD/USD Currency Exchange

0.7369 ê 0.0114  compared with 18/11/2016

 

 

 

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