Weekly Market Reports


30 January 2015

admin Macwool - Friday, January 30, 2015

WEEKLY MARKET REPORT

Week Ending 30th January, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S31/14

This Week

M31/14

Last Sale

S30/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1350

1311

1297n

+53

1431

-81

18

1318

1301

1273

+45

1358

-40

19

1209

1208

1194

+15

1301

-92

20

1155

1156

1145

+10

1271

-116

21

1139

1146

1136

+3

1262

-123

22

1122n

1127

1119n

+3

1253n

-131

26

845

835

832n

+13

780n

+65

28

783

787

762

+21

694

+89

30

745

740

722

+23

653

+92

MC

853

865

839

+14

828

+25

MOMENTUM BUILDING

The trend of shrinking national offerings looks to be one of the driving forces in a market well in recovery mode. Following on from last sale’s sub 50,000 bale catalogue, this week saw just 37,500 bales on offer making it the second smallest national sale for the season to date. The next fortnight does however grow as forecast volumes of 46k and 48k are predicted and could expand some more if the market does improve as the falling A$ proves too much to resist.

The finer microns look to be back in favour as they drove the market higher (the EMI now at 1070 - up 19 cents). Incredibly, the biggest weekly gain since the first week in September (23 cents). 18.5 and finer posted gains of 25 to 55 cents while 19 and 20s were 10 to 15 cents higher, all others just in sellers’ favour. As was the case last week the odd lot with the right specs came under massive buyer pressure. A stylish FNF clip from Coolah with high strengths (50 to 60nkt) and low mid-breaks saw its WNR wool(18.3) make just over 100 cents greasy better than the indicator with a 19.2 fleece line 50 cents better - certainly good premiums if the specs are spot on.

Skirtings followed suit but for once were outdone by their fleece counterparts. By the final fall of the hammer on Thursday all types and descriptions, regardless of vm, were up to 15 cents dearer. Crossbreds shrugged off the last two lack-lustre weeks to find favour with exporters as the exchange rate softened. Fine to medium types (25 to 30 mic) added 15 to 25 cents while the broader types looked 10 cents better. Cardings continued on their merry way with all three centres recording double digit increases as the 3 regional MCIs now range from 837 to 865. All types and descriptions finished 10 to 20 cents up. Cardings are now within 20 cents of their September 2013 record highs in Sydney and Fremantle and just 1 cent shy of the Melbourne peak - great money for these types.

Could this be a change in momentum?? According to our well informed source, there’s been a sudden change in sentiment from a stalemate in the fleece sector that makes predominately worsted manufactured cloth for high-end articles to high levels of enquiry in the past fortnight. Smaller quantities and the massive drop in the exchange rate of nearly 3 cents to a five year low (77.80 cents) over the past week and maybe the record breaking blizzard in the north-east of the US have all played its part in sending fleece prices higher, especially finer than 19 micron where levels were unsustainable. As we have said time and time again types that fit the woollen sector (short lambs and cardings) continue to strengthen to record levels as consumer demand for the casual knitwear garments grows at good rates. If you’re holding any lms, carding or crossbred types, strong consideration should be given to selling these as a price correction always happens at some stage.

Next week sees the final designated super-fine sale of the season in Sydney. This will be followed by a large Launceston catalogue the following sale. The way these finer microns have performed since the resumption of sales, it augers well for some good results for the long suffering fine-wool grower. We sell first up next Thursday in what should be a good market, if not dearer.

 

Main Buyers (This Week)

1

Techwool

6089

2

Fox & Lillie

3831

3

Aust. Merino Exp

2609

4

Kathaytex (Vic)

2207

5

Tianyu

2038

6

Lempriere

1636

7

PJ Morris

1591

8

H Dawson Sons

1011

9

Chinatex

963

  

Eastern Market Indicators (AUD cents/kg clean)

1070 cents é 19 cents compared with 23/01/2015

AUD/USD Currency Exchange

0.7890 ê 0.0174  compared with 23/01/2015

Northern Market Indicators (AUD cents/kg clean)

1098 cents é 19 cents compared with 23/01/2015

 

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