Weekly Market Reports


30 September 2016

admin Macwool - Friday, September 30, 2016

WEEKLY MARKET REPORT

Week Ending 30th September, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S13/16

This Week

M13/16

Last Sale

S12/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1613

1581

1577

+36

1464

+149

18

1596

1561

1549

+47

1428

+168

19

1527

1498

1491

+36

1346

+181

20

1405

1397

1410

-5

1278

+127

21

1393

1372

1395

-2

1265

+128

22

1364n

1357

1386n

-22

1257n

+107

26

1123n

1149n

1145n

-22

1138n

-15

28

770

770

748

+22

910

-140

30

603

606

585

+18

875

-272

MC

1063n

1043

1062n

+1

1099

-36

FINER WOOLS IN HOT DEMAND

 

The theme of this week’s market was “steady” - a steady market and a steady $ (not more than .75 cent shift). The AWEX EMI had minimal movement, just a 3 cent rise to 1290 cents. In US terms the rise was slightly more, 9 cents up to 993. The superior super-fine selection  saw more competition for 19s and finer to recoup previous sales’ losses, a general rise of 30 to 50 cents and up to 100 cents on some of the superior lots. 19.5 to 21 micron barely shifted either side of the indicators with 22 and broader giving up 25 cents. The market looks to be back in some sort of order as the gap between 19 and 21s is out to 130 cents as it was in May/June. The closest it was in late August was just 25 cents.

Skirting buyers liked what they saw as spirited bidding saw <18 micron up to 3% VM 25 to 30 cents higher with the burrier types 15 to 20 cents better with 19 micron and broader tending in sellers’ favour regardless of VM. The crossbred market split into 2 as <26 microns lost 10 to 20 cents with the 28s and broader reversed their recent losses adding 15 to 25 cents to their values. The carding sector had a steady sale, the MCI up by 1 cent to 1063 as the opening day’s losses were corrected to see all types just in sellers’ favour.

At the Nanjing Wool Conference held at Wuxi, China, last Saturday and Sunday most of the discussion revolved around the 7% fall in production last year and the predicted small recovery in production this year. Stocks all the way along the pipeline are at low levels. This includes unprocessed wool, tops, yarn and fabric. There is far more emphasis on doing the business “just in time” meaning that it is all hand to mouth and not buying the product unless it is already paid for at the other end .This can be seen in the relatively stable market over the last 12 months. The quality of wool as a fibre was spoken about often, recognising that to get wool’s best value it needs to be used in top end products. Most of the processors expressed that it had been a tough year however, considering that China’s GDP has fallen from over 11% to 6%, this may have as much to do with trading conditions as anything else. Australian exporters that we spoke to said that they could not see much downside to the market in the short to medium future saying demand is likely to continue to outstrip supply so woolgrowers are in a good place at the moment.

A few local ram sales were held this week in between the showers. Allendale at Wellington gained a top price of $4,400 to average $1,735 to clear 98%. Dunbogan at Elong Elong sold 50 rams to average $1,600 with a top price of $3,000 twice. Next week sees 39,000 bales on offer - hopefully the positive mood sticks. Go Cronulla & the Swannies!!!

 

Main Buyers (This Week)

1

Techwool

5241

2

Aust. Merino Exp

3730

3

Fox & Lillie

3100

4

PJ Morris

2579

5

Lempriere (Aust)

2204

6

Tianyu Wool

1883

7

Michell Aust

955

8

Zhong Long Int.

914

9

United Wool

791

 

Eastern Market Indicators (AUD cents/kg clean)

1290 cents é 3 cents compared with 23/09/2016

Northern Market Indicators (AUD cents/kg clean)

1333 cents é 17 cents compared with 23/09/2016

AUD/USD Currency Exchange

0.7698 é 0.0048  compared with 23/09/2016

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