Weekly Market Reports


27 February 2015

admin Macwool - Friday, February 27, 2015

WEEKLY MARKET REPORT

Week Ending 27th February, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S35/14

This Week

M35/14

Last Sale

S34/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1346

1308

1339

+7

1448

-102

18

1300

1291

1307

-7

1368

-68

19

1202

1200

1206

-4

1302

-100

20

1165

1160

1167

-2

1226

-61

21

1163

1160

1166

-3

1218

-55

22

1159

1156

1164

-5

1196

-10

26

899

885

888n

+11

806 (M)

+79

28

820

808

814

+6

626

+194

30

785

775

777

+8

758

+27

MC

915

992

910

+5

758

+157

MARKET MARKS TIME

With Chinese New Year out of the way and national catalogues under 50,000 bales some semblance of order looks to be back into wool sales. This week saw the final designated Super-fine sale of the season. Not that there will not be any more super-fine wool offered till the Spring but not in the weekly volumes that come around when designated sales are scheduled. At first glance the more stylish selection failed to entice buyers as the micron indicators barely moved to finish the sale in buyers’ favour, up to 5 cents cheaper for 18s and broader and in sellers’ favour for the finer types. A closer look sees Best/Spinner styles finer than 18 micron attract good buyer support, especially lots finer than 16 micron. The market split into two as the lower spec types eased across all microns as buyers chased the well prepared lots.

Room 2 lots came under considerable buyer pressure as the better style, B fault (>3% VM) finer types were keenly sought after commanding decisive premiums as all other types sold firm to sellers’ favour bar the skirtings containing heavy colour and cott, which have increased in volume over the last few weeks and definitely attracted bigger discounts than what has been the case. Cardings again re-wrote the record books despite an up and down price movement. An opening day surge was somewhat tempered by a final day fall. All types and descriptions finished in sellers’ favour. Despite this slowdown crutchings are now commonly making 980 to 1050 cents clean, mid 500 cents to mid 600s as growers who sold crutchings in this week’s sale will testify, great money for these types!! Crossbreds also found favour with exporters adding 5 to 20 cents to their already excellent values.   

A week of “drifting” would best describe this sale. Considering the exchange rate edged higher and has struggled to fall below78 cents and a few mills in China aren’t back on line after protracted Chinese New Year celebrations the market has hung on ok for good spec types while “off” types struggled. Quantities should remain around  the 45k range through till the Easter recess unless there is a big spike in prices, then the volumes might expand to 50k plus.

Saturday saw the Macdonald Wool Store Open Day and Last Chance Ram Sale. A good crowd gathered to have a look at a dozen studs on display, the core machine in action and trade displays. Robert Bell from Formula AG (an agribusiness consulting company) spoke about the process of joining and the importance of nutrition and ewe management for the 5 to 6 weeks after joining and how critical the utmost care has to be for the ewe at this time. Jimmy Jackson from AWI spoke of developments of new processors in countries other than China where 80% of our wool is processed. The main focus of development is in Vietnam, Russia and Belarus. Things are progressing well and, hopefully, in time these will be major destinations for Aussie wool to be a competitor against China. Just a quick reminder that Sale 40 to be held 31st March/1st April will be on at the Easter Show in the sheep pavilion. Anyone offering wool is most welcome to attend this “promotional sale” as we have been allocated tickets - a great chance to bring both events onto the one site.

Main Buyers (This Week)

1

Techwool

6130

2

Chinatex

5780

3

Tianyu

3030

4

Fox & Lillie

3027

5

Australian Merino

2406

6

Kathaytex (Vic)

2195

7

P J Morris

2009

8

G Schneider

1738

9

Michell Australia

1664

 

Eastern Market Indicators (AUD cents/kg clean)

1088 cents ê 2 cents compared with 20/02/2015

AUD/USD Currency Exchange

0.7859 é 0.0062 compared with 20/02/2015

Northern Market Indicators (AUD cents/kg clean)

1111 cents ê 3 cents compared with 20/02/2015

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