Weekly Market Reports


3 March 2017

admin Macwool - Friday, March 03, 2017

WEEKLY MARKET REPORT

Week Ending 3rd March, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S35/16

This Week

M35/16

Last Sale

S34/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2182

2133n

2093

+89

1575

+607

18

2101

2082

2017

+84

1508

+593

19

1880

1875

1806

+74

1421

+459

20

1617

1608

1562n

+55

1378

+239

21

1508

1504

1442n

+66

1378

+130

22

1443n

1438n

-

+62 (M)

1370 (M)

+68 (M)

26

974

955n

933n

+41

974n

0

28

733

736

704

+29

830

-97

30

574

579

546n

+28

719

-145

MC

1202n

1215n

1190

+12

1108

+94

Round it up!

Was it driven by a smaller offering or was it demand driven? Well it looks like a bit of both as 40,626 bales offered were mostly snapped up in a two day frenzy as the EMI rounded up late on Thursday to sit at exactly 1500 cents. When was the last time the EMI was at 1500? Well I can’t find where it has been this high. The EMI has risen 7 of the 8 selling weeks since Christmas and the micron price guides from 18.5 to 20 are at all time highs since AWEX took over market reporting in 1995. The nearest comparison without going all the way back to 1988 was 2011 and it’s only 17.5 and finer which were higher then. 19 microns presently sit 130 cents higher than June, 2011 and merino cardings now over 1200 cents in all three centres are close to 400 cents above June, 2011 levels. Macwool sold late on Thursday with 66% of merino fleece lots fetching above 1000 cents greasy and a top price of 1612 cents for 17.8 micron!

All sectors of the market received a boost this week with particular strength in the better type fine wools which typically dwindle in volume from now on. This week was the last designated fine wool sale for the season so there was a bit of a squeeze on these types but it was more likely an increase in demand for the broader and burry types which saw the other sectors follow. The latest data from AWTA show year to date a slight increase in wool volume of 3.3% by weight reflecting the increase in wool cut after a good winter. Some of the increase in weight is also vegetable matter as an AWEX report released today shows about 0.5% increase in average VM levels in fleece/piece/bellies.

The forward market saw quite a bit of activity this week but all mostly near months out as far as June and at levels ranging from 1430 to 1465 for 21 microns - in other words, at last week’s levels (which isn’t too bad considering long term averages). The real message in this activity is that the buyers of these contracts are confident the market won’t fall much when it does, as we know it will.

So where to from here? It’s still early in the season and there is at least another 8 weeks of selling before the offering in the south and west typically ease off. It is pretty certain that the healthy premiums for finer micron will be around for some time. Our concern of recent weeks was that 20 micron and coarser (particularly burry types) would, at best, flat line or falter. That fear was dispelled this week well and truly. The key thing over the coming months is to avoid excessive seed in fleece lines and, where possible, segregate heavy burr from moderate burr.

Next week a larger offering of 47,500 bales will be offered in three centres. 

Ag Concepts Fwd Prices at 3 March 2017

Micron

Date

Low

High

Micron

Date

Low

High

21

29-Mar-17

1470

1472

19

13-Sept-17

1680

1705

19

3-May-17

1700

1700

19

14-Feb-18

1630

1630

21

12-Jul-17

1400

1405

19

12-Sept-18

1610

1610

 

Main Buyers (This Week)

1

Techwool

6936

2

Fox & Lillie

5145

3

Tianyu Wool

2906

4

PJ Morris

2412

5

Chinatex

2247

6

Aust Merino Exp.

2220

7

Lempriere

2059

8

Michell Aust.

1965

9

Modiano

1915

 

 

Eastern Market Indicators (AUD cents/kg clean)

1500 cents é 51 cents compared with 24/02//2017

Northern Market Indicators (AUD cents/kg clean)

1582 cents é 52 cents compared with 24/02/2017

AUD/USD Currency Exchange

0.7656 ê 0.0036  compared with 24/02/2017

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