Weekly Market Reports


28 June 2019

admin Macwool - Friday, June 28, 2019

WEEKLY MARKET REPORT 

Week Ending 28th June, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S52/18

This Week

M52/18

Last Sale

S51/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2120

-

2217

-97

2872n

-652

18

2090

2068

2187

-97

2524

-434

19

2002

2016

2090

-88

2368

-366

20

1984n

2008

2071

-87

2346

-362

28

-

1060

1091 (M)

-31 (M)

1028 (M)

+32 (M)

30

-

835n

885 (M)

-50 (M)

695 (M)

+145 (M)

MC

961

921n

985

-24

1482

-521

SEASON ENDS ON A SOUR NOTE!

Hopes of a solid market faded early in the week as futures were traded as much as 50 cents lower than the spot price indicating yet another bad sale ahead. Both days had similar losses to see the AWEX EMI collapse by 51 cents to 1715, now at its lowest point since December 2017. The worst performing microns were 18.5 and finer that fell by an average of 100 cents while broader MPGs gave up another 80/90 cents as 25% of the national fleece catalogue was passed-in with low yielding, tender types 150 to 200 cents cheaper than their superior counterparts, the finer the micron the bigger the discount.

Room 2 wools weren’t as adversely affected as skirting’s fell by 50 to 70 cents. Cardings looked to be the least affected sector as the MCI fell by 24 cents to 961 as most types retreated by 10 to 50 cents. This puts the Carding Percentile at just 12% for the past 5 years, ie it has been higher 88% of the time over the past 5 years.  The peak of 1563 was September, 2018, a 44% fall to today’s level. With the only meaningful volume of XB wool available in Melbourne their quotes had 28/30 microns off by 30 to 50 cents.

The market has ended the season on a sour note at 1715, a 400 cent fall from the dizzy heights of mid August when it peaked at 2115, a 19% fall. The EMI spent 11 weeks above the 2000 cent mark and 19 sales in the 1900s and 15 weeks below 1900.The month of June has seen a massive drop in the EMI, falling by 172 cents (9.1%), second only to the biggest monthly fall of March of 1991 when the Reserve Price Scheme was abolished. The year on year figures of wool offered show a drop of 11.9% - 225,180 bales less than last season. The actual volume sold was 296,325 bales less (16.6%) than last season. The FRX has had little movement over the year, depreciating by 3.63 cents with the pass-in rate climbing to 10.5% for the season from 5.6% the previous year. Is this the end of the “super-cycle” that started in 2016?? Despite the falls in the latter part of the season the 3 regional indicators are all higher than the commencement of the 2017/18 season.

Reasons are varied for the fall from grace for wool prices. As the global economy slows and consumer spending patterns tighten, excess stock of wool products from garments to tops are being reported in China. This, combined with the ongoing trade war (US/China), Brexit troubles and the attacks on the two oil tankers in the Middle East, we are sailing into uncertain times as global confidence wanes. Buyers are reporting no change in direction for the wool market to open the new season.

Ag Concepts Fwd Prices as at 28 June, 2019        

Micron

Date

Low

High

21

11-Dec-19

1900

1920


Free knitted woollen jumpers for poddy lambs. Call into our office and take as many as you need.

Many colours and styles to choose from.

Main Buyers (This Week)

1

Tianyu Wool

2914

2

Aust. Merino Exp.

2302

3

Techwool

2240

4

Endeavour Wool

1940

5

Fox & Lillie

1927

6

PJ Morris Wool

1406

Eastern Market Indicators (AUD cents/kg clean)

1715 cents ê 51 cents compared with 21/06/2019

Northern Market Indicators (AUD cents/kg clean)

1731 cents ê 58 cent compared with 21/06/2019

   AUD/USD Currency Exchange

0.6994 é 0.0102 compared with 21/06/2019

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