Weekly Market Reports


30 October 2015

admin Macwool - Friday, October 30, 2015

WEEKLY MARKET REPORT

Week Ending 30th October, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S18/15

This Week

M18/15

Last Sale

S17/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1506

1502

1463

+43

1291

+215

18

1484

1490

1447

+37

1259

+225

19

1407

1400

1342

+65

1179

+228

20

1354

1344

1283

+71

1137

+217

21

1341

1329

1273

+68

1129

+212

22

1328n

1314

1256n

+72

1122n

+206

26

1050n

1031n

1013n

+37

801n

+249

28

878

875

848

+30

671

+207

30

840

820

804

+36

644

+196

MC

1077

1073

1072

+5

782

+295

MORE GOOD NEWS!!

The wool market again had an upward surge to the tune of 45 cents for the EMI, now at 1250 cents. The rise in US terms wasn’t as dramatic - a 17 cent lift to 889 - this due to the fall in exchange rates as the AU$ sits at 71.10, a fall of 1.25 cents over the week. There was an old saying in the trade (apparently) that the wool market rose at the pace of walking up stairs but fell like an elevator descending!!! This year has been the complete reversal, an 81 cent climb in just the past 2 sales whereas, immediately before this, it took 5 weeks to fall 91 cents. The boom 8 week period from mid April to early June saw the market skyrocket 267 cents only to lose 152 cents in the next 5 sales. Early August saw the market put on 83 cents only to lose all those gains in the next 2 sales. The first sale in September saw a 36 cent gain only to lose it over the next 4 sales.

The small NZ offering on Tuesday gave us hope the market would continue on from last week’s good run. This was certainly the case as both days had great gains. The medium types had the better of the rises, 19 to 23s benefitting from 50 to 70 cent jumps. Finer types did improve warming up nicely for next week’s designated super-fine sale, 18.5 and finer 35 to 45 cents higher, with some lots with good specs up to 100 cents above the indicators with a few medium types 30 better. Lower spec types were also dragged up in price, narrowing the gap between these and good lots for the time being.

Skirtings followed the fleece room lead as the fine-low VM <5% types came under renewed buyer pressure as most had 40 to 60 cent gains with the odd “cracker” 70 cents to the good with medium types adding 30 cents to their quotes, just 42 bales passed-in on the eastern seaboard, 99.2% sold. Crossbreds also shook off the losses of the past month as the majority of the selection-25 to 30 micron- put on 20 to 40 cents as broader types 32> increased by 10 cents. Again growers warmed to the new levels as the clearance rate in Sydney was over 99% only 22 bales passed-in. Cardings had the quietest sale of any sector as rises for the 3 regional MCIs ranged from 5 to 12 cents. Locks and stains were the types to edge ahead, up by 10 to 15 cents. This probably says this sector is in its peak price range for the moment as LKS and CRT are making 600+ cents and 2 inch LMS wool 700+, great money for these types reflecting the demand for shorter combing and carding types.

As we said earlier the recoveries in the wool market are a lot quicker nowadays than in the past. Once one buyer commits it’s a case of “one in, all in” or get left behind. It’s always better to buy on the way up rather than wait to see where the peak will be. Theories are mixed as to why the latest surge and how sentiment can change so quickly. A few buyers thought this could be a peak in the market with little movement either way over the next 2-3 sales but possibly some more upside before the Christmas recess. One buyer did express a concern re shipping wool to China for December/January processing as there are 7 sales to go this year and, with Chinese New Year early (2nd week in February) there could be a scramble to secure wool and meet tight shipping deadlines.

A piece of history was secured by Macwool last weekend when Don bought a Ferrier wool press at the clearing sale of “Whitewood” Robin McLaughlin Nyngan property. This wool press was manufactured in 1864, the 6th to be made from over 2,300 built spanning 70 years. At only $4,000 it looks like “a steal” and will take pride of place at the wool store with the Koertz press.

Ag Concepts Fwd Prices at 30 October

Micron

Date

Low

High

Micron

Date

Low

High

21

9-Dec-15

1325

1325

21

9-Mar-16

1300

1305

18.5

24-Feb-16

1430

1440

21

22-Jun-16

1300

1300

               

Eastern Market Indicators (AUD cents/kg clean)

1250 cents é 45 cents compared with 23/10/2015

Northern Market Indicators (AUD cents/kg clean)

1278 cents é 42 cents compared with 23/10/2015

 AUD/USD Currency Exchange

0.7111 ê 0.0122  compared with 23/10/2015

 

Main Buyers (This Week)

1

Techwool

7029

2

Modiano (Aust)

4247

3

Chinatex

4194

4

Fox & Lillee

3470

5

Lempriere

3322

6

PJ Morris

2227

7

Australian Merino

2033

8

Michell Wool

1547

9

Vic Wool Proc.

1408


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