Weekly Market Reports


30 January 2017

admin Macwool - Monday, January 30, 2017

WEEKLY MARKET REPORT

Week Ending 27th January, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S30/16

This Week

M30/16

Last Sale

S29/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2004

1971

2016

-12

1569

+435

18

1907

1875

1931

-24

1550

+357

19

1735

1721

1761

-26

1464

+271

20

1537

1540

1583

-46

1409

+128

21

1432

1432

1478

-46

1403

+29

22

1378

1368

1426

-48

1387

-9

26

919

917

930

-11

991

-72

28

661

661

665

-4

842

-181

30

554

533

575

-21

773

-219

MC

1160

1158

1165

-5

1149

+11

 

Looks like The dust has settled.

 

It was another week of two halves, but this time the two days each had a different tone about them. Not surprisingly, the first day of selling was met with buyer resistance as the dollar edged higher and the offering consisted of more broader merino types carrying higher VM. The Northern Indicator fell 20 cents on Tuesday with the majority of the pain felt coarser than 20 microns. On Wednesday the market held firm and even strengthened towards the end of selling indicating the “correction” was over for the time being. Interestingly though, the broader end continued to ease with 22 microns quoted back another 20 cents on the second day.

The weekly change column shows a clear direction for the market which has been quite marked since the resumption of sales three weeks ago. What the market reports don’t show are the discounts and quotes for wool carrying high levels of VM e.g. fleece over 4%. About one third of our merino fleece offering this week was carrying over 4%, and up to 11%. In the three weeks since sales resumed the discounts for these types has nearly doubled as processors grapple with what to do with them. Conversely, the skirtings off these same clips which are carrying from 15-25% haven’t changed much and are making relatively good money in clean terms. We expect this trend to continue over the next few months as most clips will edge higher in micron and wool cut.

Merino cardings have maintained values reasonably well as small volumes in this sector keep buyers on their toes, crossbred oddments on the other hand have been struggling for some time and much of the passed lots we have had during the last three weeks have been these types.

For fine wool, the future looks very bright as supply will tighten over the coming months. One thing to consider as autumn approaches will be seed and shive. Any seedy edges would be best removed as discounts on these types will definitely increase as we have seen with clover burr.

Next week it is expected that the firming trend seen on Wednesday will continue and the offering of 42,500 bales is lower than any of the previous three weeks with Macwool first up on Thursday.

Ag Concepts Fwd Prices at 20 January 2017

Micron

Date

Low

High

19

26-Apr-17

1670

1670

21

15-Mar-17

1430

1445

21

08-Feb-17

1450

1450

 

Main Buyers (This Week)

1

Fox & Lillie

4253

2

Techwool

4071

3

Tianyu

3258

4

Lempriere (Aust)

3071

5

Aust Merino

3013

6

Chinatex

2814

7

P.J.Morris

2569

8

Michell

2566

9

Kathaytex

1705

 

 

Eastern Market Indicators (AUD cents/kg clean)

1412 cents - 22 cents compared with 19/01//2017

Northern Market Indicators (AUD cents/kg clean)

1487 cents - 19 cents compared with 19/01/2017

AUD/USD Currency Exchange

0.7543 é 0.0021  compared with 19/01/2017

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