Weekly Market Reports


28 April 2017

admin Macwool - Friday, April 28, 2017

WEEKLY MARKET REPORT

Week Ending 28th April, 2017

AWEX Northern Micron Indices Comparison


AWEX INDEX

This Week

S43/16

This Week

M43/16

Last Sale

S41/16

Sydney

Change

Last Year

Sydney (Wk44)

Sydney Yearly

Change

17

2324

2287n

2317

+7

1523

+801

18

2178

2131

2173

+5

1482

+696

19

1897

1931

1895

+2

1431

+466

20

1591

1581

1608

-17

1391

+200

21

1473

1483

1507

-34

1367

+106

22

1396n

1393n

1405n

-9

1335n

+61

26

1043

1039n

1041

+2

1021n

+22

28

738

740

735

+3

772n

-34

30

579

590

584n

-5

669n

-90

MC

1165

1183n

1159

+6

1013

+162


GROWERS SURVIVE THE BIG OFFERING

The wool market resumed in earnest this week as the predicted “monster” national offering forecast last Monday was down from 58,000 to 55,000 bales. Still, this was enough for buyers to adopt a cautious approach to the sale. Prices waned in the opening session only to recover some of the lost ground on the final day. Losses were restricted to the medium microns - 19.5 to 21s retreated by 15 to 35 cents while broader types lost 10 cents. Finer than 19 micron was in sellers’ favour as the odd lot with good specs came under closer scrutiny to be quoted up to 50 cents higher.

Skirtings mirrored the fleece room as losses of 20/30 cents for all types and descriptions were the order of the day and only the odd lot that suited specific orders looked dearer in the final session. Exporters were commenting on the increase in volume of colour and cot in skirtings and the rise in the discounts for lots with these faults in them. The carding market enjoyed some renewed competition as all types in this sector gained about 10 to 15 cents across the board. Crossbreds also finished with their noses in front for the week. Again most types in sellers’ favour as quantities reduce in volume.

The initial big forecast offering for this week coupled with the exchange rate climbing back above 75.5 cents last week was enough to have buyers adopt a wait and see approach as to where levels would be set in the opening hour of the 1st session. The release of weaker CPI figures on Wednesday (noon) saw the $A fall to below 75 cents which helped the market in Fremantle firm at the end of the day. The tone improved on the 2nd day in all 3 centres to see the EMI fall by just 11 cents to 1501. The other factor in growers’ favour is the diminishing quantities on offer. The next 3 sales will not be over 40,000/week keeping buyers under pressure from a lack of supply that will stretch through May and June.

Futures trading didn’t reflect the dip in prices as lock-in levels remain at 1400 cents or better out to October. May and June are right at the physical level (1470/80) indicating a very solid market in the short term. As we move through the Autumn, factors influencing the market direction won’t change. Supply, demand, exchange rates and quality of the offering will always play a part in price movements. History has told us that at some stage around this time of year there are always a few sales when the selection is below par (due to a dry late Summer/early Autumn) and the market suffers but with the higher volume of VM around this season the drop-off in quality may not be as pronounced as in past years. Time will tell! Next week’s offering will be about 40,000 bales. We open proceedings on Thursday - market should be rock solid to dearer.


Ag Concepts Fwd Prices at 28 April 2017


Date

Low

High

21

13-Sep-17

1390

1400

21

11-Oct-17

1400

1400


Main Buyers (This Week)


1

Techwool

6476

2

Fox & Lillie

6329

3

Tianyu

4319

4

Aust Merino Exp

4062

5

Lempriere Aust.

2969

6

PJ Morris

2511

7

Chinatex

2207

8

Michell Aust.

1804

9

Modiano

949


Eastern Market Indicators (AUD cents/kg clean)

1501 cents ê 11 cents compared with 14/04/2017

 Northern Market Indicators (AUD cents/kg clean)

1597 cents ê 11 cents compared with 14/04/2017

AUD/USD Currency Exchange

0.7484 ê 0.0013
compared with 14/04/2017

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