Weekly Market Reports


30 June 2017

admin Macwool - Friday, June 30, 2017

WEEKLY MARKET REPORT

Week Ending 30th June, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S52/16

This Week

M52/16

Last Sale

S51/16

Sydney

Change

Last Year

Sydney(Wk53)

Sydney Yearly

Change

17

2200n

2173n

2232

-32

1548

+652

18

2130

2087

2165

-35

1516

+614

19

1859

1864

1892

-33

1481

+368

20

1634

1618

1672

-38

1462

+172

21

1543

1547

1583

-40

1449

+94

22

-

1476

1516n (M)

-40 (M)

1431n (M)

+45 (M)

26

1103

1096n

1109n

-6

1104n (M)

-8 (M)

28

756

765

769

-13

779n

-23

30

558

560n

548

+10

678n

-120

MC

1184n

1170n

1184n

0

1084

+100 

BIG VOLUME – NO PROBLEM … HOPEFULLY!!

After regaining some of the lost ground in May, the market ran out of steam following 5 days of rises in the past 2 weeks that saw the AWEX EMI go from 1467 to 1533. Talk of the larger national catalogue in the opening 2 weeks of July of over 90,000 bales certainly gave the buyers a chance (excuse??) to relax their buying patterns. Big falls on the opening day were somewhat negated by a more positive tone in the final session. By week’s end the EMI lost 26 cents to 1507. The fall in $US terms was minute, just 4 cents to 1154 as the A$ strengthened against the $US by 1 cent (1.38%). Losses ranged from 25 to 45 cents across all the merino microns and, in some cases, 100 cents for < 18.5 off types and burrier lots. Once again, if lots had the right specs, they were in high demand as wools from Goolma, Cunnamulla and Parkes made from 50 to 130 cents higher than their indicators.

Room 2 types (skirtings, cardings and crossbreds) looked to escape the carnage of the merino fleece types.  The odd fine lot of superior type PCS/BLS were extreme with < 3%VM fully firm and burrier lots actually 10 to 20 cents better. Cardings remained unchanged - LKS were in sellers’ favour with STN/CRS in buyers’ favour. Crossbreds looked to split into 2 markets as finer than 28s were 5 to 15 cents off the pace with 30 micron and broader 10 to 15 cents higher.

As mentioned earlier, upcoming volumes rather than demand drove the market’s direction especially on the opening day. Overseas users took advantage of the new level of prices set in this session as this renewed demand went straight into the sale rooms on Thursday to completely stop the sliding market as most buyers quoted 19 micron and broader 10 to 15 cents dearer. The predicted outcome for next week (despite the large volume) is solid but very sensitive to any currency shift.

The final sale of the season was disappointing but it ended a season of highlights. The EMI set a record for the highest level for an end to a season (1507), 210 cents (16%) better than 12 months ago. The average for the EMI was 1401 for the year, up 147 cents (12%) while in $US terms it was a 20% jump to 1154 cents. This was the 4thyear in a row that the average of the EMI increased and the eighth increase over the past decade. There were 80,600 bales more offered this season than last season which saw 56,000 bales sold to the trade higher than the previous year. Of the 1,721,000 sold, Techwool Trading secured 255,573 bales (15%) with Fox & Lillie in 2nd spot (174,000). The next 5 buyers bought between 133,000 to 110,000 bales as the top 10 buyers grabbed 72.8% or 1,253,000 bales. 

Ag Concepts Fwd Prices at 30 June 2017

Micron

Date

Low

High

21

16-Aug-17

1490

1490

21

20-Sep-17

1430

1430

Main Buyers (This Week) 

1

Techwool

3975

2

Aust Merino Exp.

3718

3

Fox & Lillie

3663

4

Lempriere Aust.

2914

5

Chinatex

2083

6

Modiano

1775

7

Michell

1606

8

PJ Morris

1573

9

Tianyu

1562

 

Eastern Market Indicators (AUD cents/kg clean)

1507 cents ê 26 cents compared with 23/06//2017

Northern Market Indicators (AUD cents/kg clean)

1578 cents ê 21 cents compared with 23/06/2017

AUD/USD Currency Exchange

0.7655 é 0.0101  compared with 23/06/2017

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