Weekly Market Reports


4 December 2015

admin Macwool - Friday, December 04, 2015

WEEKLY MARKET REPORT

Week Ending 4th December, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S23/15

This Week

M23/15

Last Sale

S22/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1508

1491

1506

+2

1274

+234

18

1486

1469

1486

0

1260

+226

19

1407

1400

1402

+5

1215

+192

20

1329

1330

1332

-3

1182

+147

21

1315

1324

1315

0

1161

+154

22

1308n

1319

1309n

-1

1152n

+156

26

1005n

1001

1024n

-19

833

+172

28

830

831

859

-29

735

+95

30

780

791n

804

-24

698

+82

MC

1115

1114

1105

+10

798

+317

 

STATUS QUO

Yet another sale where any clear direction was hard to find. By the end of the sale the benchmark AWEX EMI had moved upwards by the barest of margins, 1 cent, to 1247. In US terms the rise was 10 cents to 912, this due to the AU$ spending all week above 73 cents. This is the third consecutive sale where the EMI has struggled to move in any direction. Since climbing to 1251 in the second week of November we’ve had 8 sale days where the EMI has traded in a narrow 8 cent range.

The sale commenced as most pundits predicted, higher exchange rate - cheaper market, however there looked to be a change of sentiment late on the opening day that then saw Thursday’s selection come under increased buyer scrutiny to see the opening day’s losses recovered. Most fleece indicators in Sydney were either side of unchanged by the finish of selling with up to a dozen lots in our catalogue gaining up to 20 cents over their indicators, contradicting the AWEX report that most microns lost 5 to 10 cents in the first session.

Skirtings continued on their merry way with all types across all microns adding 10 to 15 cents with most emphasis on the >8%VM lots. This is encouraging as the volume of burry wool coming in is dramatically on the rise. We had 2 clips from the Marra with 15 to 20% VM in their BKN making low to mid 500 cents with their BLS over 400 cents carrying up to 26% VM - very good money for these types. Cardings again played a starring role as all 3 centres MCIs are now 1100 cents or better as all types in this sector were 5 to 15 cents to the good. Crossbreds suffered from the higher exchange rate and the largest selection on the eastern seaboard since last spring - 26.7% (7950 bales) of the total offering. Losses ranged from 20 to 30 cents for most microns, bar 32s losing just 5 cents.

Latest figures released by AWTA show a drop of 7.5% for bales tested to the end of November compared to the same period last year. The total bales offered to date for the season is running at 9.2% (79,785) below last year. These figures should be ringing alarm bells in China. Many other factors will come into play after Christmas that will influence market direction. Apart from quantity (or lack of), quality will be crucial, the increasing amount of VM will influence buying patterns and of course currency shifts will always be a factor. Exchange rates are influenced almost daily by economic data being released or the price of commodities and the erratic movements of global stock markets.

Next week sees the penultimate sale of the year as the national catalogue has 49,000 bales on offer, the biggest since March. Melbourne’s catalogue will increase by 9,500 bales from this sale, a rise of 50%. Could this see the market come under pressure despite a 3 week recess almost upon us? Time will tell. We offer 750 bales late on Thursday. 

 Main Buyers (This Week)

1

Techwool

3874

2

Chinatex

3783

3

Fox & Lillie

3102

4

Global Wool Exp.

3010

5

Lempriere (Aust)

2114

6

Modiano (Aust)

2017

7

Michell Aust.

1929

8

Tianyu Wool

1812

9

Australian Merino

1802

 

 

Eastern Market Indicators (AUD cents/kg clean)

1247 cents é 1 cents compared with 27/11/2015

Northern Market Indicators (AUD cents/kg clean)

1273 cents ê 2 cents compared with 27/11/2015

 

AUD/USD Currency Exchange

0.7311 é 0.0078  compared with 27/11/2015

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