Weekly Market Reports


30 August 2013

admin Macwool - Friday, August 30, 2013

WEEKLY MARKET REPORT

Week Ending 30th August, 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S09/13

This Week

M09/13

Last Sale

S08/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1396

1418

1331

+65

1303

+93

18

1285

1277

1212

+73

1171

+114

19

1200

1203

1132

+68

1096

+104

20

1159

1159

1086

+73

1055

+104

21

1154n

1155

1076

+78

1051n

+103

22

-

1138

1060n

+81 (M)

1035 (M)

+103 (M)

26

850

845n

808n

+42

828n (M)

+17 (M)

28

658

658n

641

+17

550

+108

30

632n

-

612

+20

524n

+108

MC

861

858n

853

+8

545

+316

GOOD RAM SALE AND EVEN BETTER WOOL MARKET

Smaller offerings, a lower exchange rate, Europeans back from summer vacation, good sales made last week, the improving economic conditions in the Northern Hemisphere or just the time to step in and buy some wool - any one of these reasons was trotted out by all and sundry as to why the wool market exploded into action this week to see the EMI leap by 52 cents (5.1 %) to 1164, the largest weekly rise in 30 months. The first designated super-fine sale of the season didn’t disappoint anyone as some of these specialty types added up to 100 cents to their values, but according to a successful Merino stud breeder we were talking to from Walcha at this week’s ram sale in Dubbo, the prices for sub 19 micron wool still needs to lift by a considerable amount to keep these growers in the industry - a fact that can’t be denied as the gap between 18s and 21s is still only 130 cents.

Good Wooltrade sales over the weekend and early this week hinted at a solid to dearer market (we sold a lot on Saturday night to a buyer in Melbourne!).  Both days saw substantial gains across all micron indicators - 50 to 75 cents in Sydney and a few indicators in Fremantle and Melbourne up by 80 cents. A national clearance rate of 98% was the highest in 11 years as growers were left with virtually no reason to pass-in wool, but did withdraw 900 bales from sale. The most pleasing aspect was the strong finish in Fremantle on Thursday - a rise of 40 to 55 cents with their regional indicator higher than those on the eastern seaboard.

Skirtings followed the lead of the fleece room as discounts virtually all but evaporated to see this sector add 20 to 40 cents for most types with the super-fine lots coming under intense scrutiny jumping up to 80 cents. The ever increasing volume of crossbreds (13% of the Sydney catalogue) also benefitted as fine lots to 26 micron put on 30 to 40 cents with 28s and broader quoted up to 20 cents better. Cardings continued to re-write the record books as all types and descriptions were 5 to 15 cents higher to have both MCIs on the East Coast at 860 and 845 in the West.

This week’s big rise came out of left field but was on the cards to happen in September according to most talk on the show-floor. A combination of the above factors (stated at the start of this report) led to dare we say “panic buying” as securing volume was more critical than actual price. Volume, or the lack of it, is no more evident than in the west as Fremantle goes back to a 1 day sale next week as national totals struggle to climb above 40,000 bales for the next three weeks. It will be interesting to see if any considerable volume comes out of “Sale 99” following this week’s rise.

This week saw the 53rd National Sheep Sale and Ram Sale here in Dubbo. 53 lots were offered with 8 lots passed in. Top price was $23,000 for a Roseville Park ram with the Supreme ram of the Show from One Oak at Jerilderie making $22,000. Other stud highlights included Langdene to $16,000, Pemcaw and Willandra to $13,500, Nerstane to $12,500 and Mach shorn rams from Haddon Rig to $5,000. The 45 rams sold averaged $6100, a great average considering the seasonal conditions in QLD and Northern NSW and the state of the fine-wool market. We sell next Wednesday with a catalogue of 935 bales to hopefully a solid (if not slightly dearer) market.    

Fwd. Price Trades W/E 30 August, 2013

Maturity

Low

High

Maturity

Low

High

21

18-Sep-13

1140

1140

21

20-Nov-13

1145

1150

19

23-Oct-13

1170

1170

28

22-Jan-14

630

630

 

 

1

Techwool

2712

2

QLD Cotton

2532

3

Lempriere (Aust)

2349

4

Chinatex (Aust)

1677

5

PJ Morris

1205

6

Aust Merino Exp

1363

7

Donghai Aust.

1159

8

Modiano (Aust)

976

9

Tianyu Wool

621

 

Eastern Market Indicators (AUD cents/kg clean)                    AUD/USD Currency Exchange

1064 cents é 52 cents compared with 23/08/2013                 0.8971 ê 0.0028 compared with 23/08/2013

 

Northern Market Indicators (AUD cents/kg clean)

1082 cents é 52 cents compared with 23/08/2013

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