Weekly Market Reports


26 June 2015

admin Macwool - Friday, June 26, 2015

WEEKLY MARKET REPORT

Week Ending 26th June, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S52/14

This Week

M52/14

Last Sale

S51/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1530

1519

1590n

-60

1218

+312

18

1462

1442

1538

-76

1163

+299

19

1393

1383

1460

-67

1134

+259

20

1352

1344

1410

-58

1131

+221

21

1338

1340

1396

-58

1131

+207

22

1301n

1298

1366n

-65

1133n

+168

26

1100n

1110n

1164n

-64

813n

+287

28

924

933

969

-45

665

+259

30

826

800n

857

-31

640n

+186

32

678n

670n

740n

-62

569n

+109

MC

1096

1098

1104

-8

796

+300

BUYERS TAKE REVENGE

The wool market ended the season on a tough note as the Chinese were happy to let the market drift as it liked as larger than forecast national quantities this week and Sale 1 of the new season gave them every reason to see at what level the market would settle. Last sale’s weekly fall of 36 cents was the biggest in 2 years, until this sale. The EMI lost 57 cents (now 1263) a fall of 110 cents since peaking 3 weeks ago. Most fleece indicators lost 55 to 75 cents - most of this on the opening day when the 49 cent drop was the largest single day fall for 4 years. Thursday saw the market settle and, in fact, some better style types looked harder to buy. As usual discounts grew for any fault buyers could find as the highlights were few and far between. A nice 18.5 lot from Dunedoo made 65 cents better than the indicator while the odd lot from Gundagai, Gulgong, Dunedoo and Terri Hie Hie made 10 to 30 cents higher than their indicators.

Skirtings took a battering but not to the extent of their fleece counterparts. The opening day’s falls were tempered by the final day’s firming market but the damage had been done as all types and descriptions, regardless of VM or style, gave up 40 to 50 cents. Crossbreds also took their biggest weekly hit for some years and followed the same pattern as the merino types. For all microns (25 to 32) the losses ranged from 30 to 65 cents. The carding market seemed to escape the big carnage of the other sectors. The MCI lost just 8 cents to slip below 1100 cents to 1096. STN and CRT were the main culprits in this sector falling 10 to 20 cents as LKS maintained their excellent levels.

Another season draws to a close. Despite the market running out of steam over the past few sales the market has finished 247 cents (24%) higher than when we started -1016 to 1263. This is the 6th best rise in 35 years of tracking the EMI. In US terms the market is only 23 cents better than at the start of the season (955 to 978) as the downward shift in the exchange rate from 94 to 77 cents being the main influence on this small price movement. Just shy of 2million bales have been offered this season, up 7.4% (136,300) on last season and the no.1 buyer, Techwool Trading, bought 250,000 bales - an increase of 1%  with the top 10 buyers securing 70% of the clip. The pass-in rate was lower this season, down to 8%, due to the rapid upward shift in prices especially this final quarter of the year.

Grower resistance came to the fore as the market tumbled more than what was expected. 23% of all fleece offered was passed-in with Fremantle’s rate at 43% with their overall rate at 33%. The market in Sydney wasn’t as bad but still passed in 10%. Despite these big losses, the gains made at the end of May into early June still outweigh the falls. All sectors of the market, bar 18.5 and finer fleece wool, are still at or near record levels. 21 micron has only spent 6 sale days above 1400 cents during the most recent price rises. Next week sees the commencement of the new selling season with a national catalogue of 49,000 bales on offer. We sell on Thursday to what should be a more settled market.

 

 Ag Concepts Fwd Prices at 26 June

Micron

Date

Low

High

21

5-Aug-15

1296

1340

21

23-Sep-15

1295

1295

 

Main Buyers (This Week)

1

Chinatex

6514

2

Lempriere

2981

3

Tianyu

2779

4

Techwool

2473

5

Australian Merino

2440

6

Michell

2430

7

Fox and Lillie

2175

8

G Schneider

1714

9

Kathaytex Aust.

1409

Eastern Market Indicators (AUD cents/kg clean)

1263 cents ê 57 cents compared with 19/06/2015

Northern Market Indicators (AUD cents/kg clean)

1290 cents ê 52 cents compared with 19/06/2015

AUD/USD Currency Exchange

0.7744 é 0.0021 compared with 19/06/2015


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