Weekly Market Reports


26 October 2018

admin Macwool - Friday, October 26, 2018

WEEKLY MARKET REPORT

Week Ending 26th October, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S17/18

This Week

M17/18

Last Sale

S16/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2582

2566

2743

-161

2377

+205

18

2397

2382

2530

-133

2201

+196

19

2258

2241

2330

-72

1920

+338

20

2175

2158

2262

-87

1668

+507

21

2153

2163

2223

-70

1560

+593

22

-

2165

-

-38 (M)

1491n (M)

+674 (M)

26

-

-

1301n

-

1014

-

28

795

776

-

-70 (M)

707

+88

30

671n

700n

701n

-30

515

+156

MC

1143

1156n

1299

-156

1233n

-90

ALL TYPES COP A CANING!

Buyer sentiment changed from bad to worse this sale as losses exploded to, in many cases, triple figures with the EMI almost falling a triple figure amount! The AWEX EMI collapsed by 96 cents to 1874, its largest weekly fall for 15 years with the opening day’s 72 cent reduction also the biggest daily fall since 2003. From the original national roster 38,700 bales 7% was withdrawn and 24% was passed-in (highest since February 2014) to have just 26,400 bales sold. The finer end of the market bore the brunt of the collapse as < 18.5 lost 110 to 165 cents with the 19s and broader losing 40 to 90 cents as no type or micron was immune to the big falls.

The news was no better in Room 2 as all sectors suffered. Skirtings took a massive hit as all types, regardless of length, micron or VM, gave up 130 to 200 cents. Cardings also felt the full force of buyer resistance as the 3 centres averaged falls of 138 cents as all types in this sector fell 100 to 200 cents as the MCI is now below last year’s level. As was the case last series, Crossbreds were the least affected as losses ranged from 10 cents for the broader microns to 70 cents for 28s and finer.

No-one can or would even try to predict a market movement like the one we’ve witnessed, be it up 125 cents like Sale 7 or this series, a fall of 96 cents. Reasons??: the FRX, no it fell by half a cent; the quality of the offering or quantity, unlikely; the fact that higher prices have been in vogue for some time and manufacturers are struggling to pass on these higher prices to retailers is  highly likely. Once the pull-back started after Sale 7 we had 5 weeks of stable prices then 3 series of relative calm before last week’s fall. The EMI has lost 242 cents since mid August but is still 300 cents (19%) higher than the same sale 12 months ago with the increases in all merino microns 200 to 650 cents to the good.

Most ram sales have finished in this area now with the focus moving to the Southern part of the state. On the whole most studs have reported good clearance rates and higher averages than in past years despite some clients not needing rams due to the dire season and not risking joining’s and large ewe and lamb losses. One sale of note was Grogansworth at Bowning near Yass selling 85% of the offering to top at $6,500 with an average of  2,155. Only 1 week left to vote for Woolpoll 2018 if you’re eligible - just 6200 growers have voted so far. Hopefully the dearer fleece prices in Fremantle yesterday (+5 to 15) will be enough to change saleroom sentiment and stop the rot!!

Ag Concepts Fwd Prices at 26 October, 2018

Micron

Date

Low

High

21

28-Nov-18

2150

2150

21

17-Apr-19

2050

2050

Main Buyers (This Week)

1

Tianyu

2701

2

Seatech Ind.

2391

3

Techwool

2329

4

Fox & Lillie

1939

5

Kathaytex

1507

6

Endeavour Wool

1126

7

G Schneider

942

8

Aust. Merino

891

9

Michell Aust.

767

 

Eastern Market Indicators (AUD cents/kg clean)

1874 cents ê 96 cents compared with 19/10/2018

 

Northern Market Indicators (AUD cents/kg clean)

1914 cents ê 107 cents compared with 19/10/2018

 

AUD/USD Currency Exchange

0.7080 é 0.0053 compared with 19/10/2018

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