Weekly Market Reports


29 May 2015

admin Macwool - Friday, May 29, 2015

WEEKLY MARKET REPORT

Week Ending 29th May, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S48/14

This Week

M48/14

Last Sale

S47/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1551

1537

1485

+66

1265

+286

18

1530

1518

1448

+82

1213

+317

19

1471

1475

1391

+80

1184

+287

20

1422

1432

1333

+89

1160

+262

21

1403

1429

1307

+96

1157

+246

22

1368n

1386

1264

+104

1141n

+227

26

1099n

-

1018n

+81

786n

+313

28

928n

921

895n

+33

680n

+248

30

853n

841n

830n

+23

641n

+212

MC

1088

1113

1071

+17

790

+298

OHHH .…. TO HAVE 23 MICRON WOOL AGAIN!

Sellers’ favour indeed!! The market exploded into action from the opening lot as buyers chased every lot as, dare we say, “panic buying” was the order of the day. Both sale days posted massive gains as the EMI leapt 70 cents to 1312 - now a 4 year high. In US terms the rise wasn’t as dramatic - a 20 cent gain to 1010 helped by the favourable downward currency shift to 76.5 cents. Unlike the big rise of 3 weeks ago, it was the broader microns that rounded up the finer types as far as rises went. 21s to 23s rose 102 to 140 cents in Melbourne while the only 100 gain in Sydney were 22s (up 104 cents) as all other merino microns jumped 60 to 95 cents. The 140 cent jump saw 23s have their biggest weekly lift for 13 years, now at 1364 cents. This a new record for 23s dating back to not only AWEX records but to the commencement of the AWC market reports in 1979. At this level a FNF 23 micron sound lot that yields 70% is making mid 900 cents or, with 7kgs of fleece, over $65/ head - a great return.  Super-fine types weren’t neglected either as clips from Merriwa and Yass commanded premiums of up to 100 cents higher than the indicators. Of the 18,703 bales of fleece offered on the eastern seaboard, just 70 were passed in, over 99.5% cleared!!

Skirtings weren’t denied but didn’t rise to the extent of the fleece wools. Across the board increases ranged from 30 to 60 cents regardless of type, style, micron or VM. BKNs from Armatree, Gongolgan and Coonabarabran made over 700 cents all containing 6 to 8% VM - great money for these types. Cardings had the quietest sale of all sectors with the 3 regional MCIs gaining 17 to 31 cents.  All of the increases were on the opening day as all types added 10 to 20 cents as some burrier locks actually lost ground on the final day.  The MCI in Melbourne cracked 1100 cents (now at 1113) and 1088 in Sydney - unbelievable levels for these types. The lift in the crossbred sector was varied as the finer microns < 26 kept pace with their merino counterparts gaining 80 cents while 28 to 32s put on 20 to 30 cents.

It was a great week to sell wool.  Records continue to tumble as 23s are joined by 28, 30 and 32 microns by reaching record highs in AUD$ terms along with cardings but, surprisingly, still some way to go before they go to record levels in US$ terms. Of course growers warmed to these new levels as only 389 bales of the national catalogue were passed-in (1%) which is the highest clearance for some years. The big fall in the A$ from 81.35 two weeks ago to 76.5 this morning has certainly helped. Along with reduced quantities here and in New Zealand and South Africa till the end of the season this could well see some more price rises in store.

Growers who sell in Spring should be looking closely at the futures market as lock- in prices in excess of 1300 for 21s is rare and the higher the market goes the bigger the scope for larger corrections looms. Wool sales will be restricted to the east coast next week (as Fremantle has a break) with 25,000 bales on offer. Predicting the market is hard at the best of times but, recently, almost impossible. Here goes, sellers’ favour again - how much???

Ag Concepts Fwd Prices at 29 May

Micron

Date

Low

High

21

8-Jul-15

1290

1300

21

26-Aug-15

1280

1300

21

21-Oct-15

1250

1285

28

9-Dec-15

820

820

21

27-Jan-16

1250

1250

                   

Main Buyers (This Week)

1

Techwool

5168

2

Chinatex

4977

3

Fox and Lillie

4190

4

Lempriere

3392

5

PJ Morris

2078

6

Australian Merino

1944

7

Tianyu

1755

8

Modiano

1577

9

Michell

1252

Eastern Market Indicators (AUD cents/kg clean)

1312 cents é 70 cents compared with 22/05/2015

Northern Market Indicators (AUD cents/kg clean)

1337 cents é 63 cents compared with 22/05/2015

AUD/USD Currency Exchange

0.7697 ê 0.0204 compared with 22/05/2015

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