Weekly Market Reports


28 September 2018

admin Macwool - Friday, September 28, 2018

WEEKLY MARKET REPORT

Week Ending 28th September, 2018

AWEX Northern Micron Indices Comparison

    AWEX INDEX    

This Week    

S13/18    

This Week    

M13/18    

Last Sale    

S12/18    

Sydney    

Change   

 Last Year   

 Sydney   

    Sydney      

     Yearly   Change      

   17    

2948

2822

2988

-40

2238

+710

   18    

2615

2570

2688

-73

2072

+533

   19    

2358

2349

2429

-71

1791

+567

   20    

2220

2217

2294

-74

1597

+623

   21    

2178

2173

2243

-65

1532n

+646

   22    

-

2170n

-

-52 (M)

1476n (M)

+694 (M)

   26    

1401n

1473n

1433n

-32

1093n

+308

   28    

-

910

944n

-49 (M)

813 (M)

+97 (M)

   30    

-

730

728n

-26 (M)

563 (M)

+167 (M)

   MC    

1419

1487n

1531

-112

1139n

+280

60,000 BALES DOWN BY WEEK 13.... LONG WAY TO GO!

It was another lacklustre week as indicators tumbled across all three centres. Due to AFL fever in Melbourne and public holiday today, the Melbourne series started on Tuesday in isolation and continued the trend of buyer resistance. The EMI has shed 81 cents in the last two weeks with the merino carding indicator losing 144 cents over the fortnight. The dollar was basically unchanged this week so the relatively small offering of just over 32,000 bales could only blame an increasing quantity of “off types” for the decline. Hardest hit were the droughty higher VM types over 4% where buyers were very selective. The carding market seems to have run into some real issues and one cannot but feel that prices over 1500 cents for these types are very hard to sustain. The exporters we have spoken with who have recently returned from China aren’t overly nervous about the price - it’s more fear of supply that is of concern. Yes, the last six month upward shift hasn’t fully been digested and there will be an increase in blending but the Chinese are very enthusiastic about using wool and keeping it foremost in their products. Nearly all mills are operating hand to mouth with no stock and we know there is little in the pipeline here of unsold wool, so the year to date offering statistic of 59,611 less bales offered is a real concern for all.

All woolgrowers should have received their Woolpoll voting packs this week with information about AWI’s activities and future plans. The important issue for all to attend to is voting for the wool levy for the next three years. The wool levy has been 2% since AWI started in 2001 and it is recommended by the Board that this rate continue. Initially the whole levy went towards R & D but, since 2010, AWI re-entered marketing and now spends 60% of it’s income on marketing. There is tangible evidence that this has had a significant impact and certainly helped put the market where it is. Whilst levy income has increased as the price has, downturn in production will severely impact and offset this. I am keen to see the levy remain at 2%.

For those who wish to hear first hand about AWI’s performance and projects there will be a lunchtime event at Dunedoo 11am, Monday, October 8 and a 5pm meeting at Wellington followed by drinks and nibbles the same day. We urge you to make the time to come along and take some time out. Please call 1800 070 099 to register at no cost.

Next week a larger offering of 42,500 bales will be offered with maybe a hint of levelling out late in Fremantle yesterday giving us hope of a firm market next week.

                             Ag Concepts Fwd Prices as at 28 September, 2018

Micron

Date

Low

High

21

28-Nov-18

2165

2165

         

Main Buyers (this week)

1

Seatech Ind.

3112

2

Tianyu

2759

3

Techwool

2510

4

Fox & Lillie

2124

5

New England

1760

6

PJ Morris

1621

7

Aust. Merino

1498

8

G Schneider

1271

9

Kathaytex Aust.

786

Eastern Market Indicators (AUD cents/kg clean)

2013cents ê 54 cents compared with 21/09/2018

Northern Market Indicators (AUD cents/kg clean)

2074 cents ê 66 cents compared with 21/09/2018

AUD/USD Currency Exchange

0.7258 up 0.0001 compared with 21/08/2018 

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