Weekly Market Reports


4 July 2014

admin Macwool - Friday, July 04, 2014

WEEKLY MARKET REPORT

Week Ending 4th July, 2014

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S01/14

This Week

M01/14

Last Sale

S52/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1224

1223

1218

+6

1294

-70

18

1173

1176

1163

+10

1173

0

19

1141

1147

1134

+7

1114

+27

20

1130

1129

1131

-1

1097

+33

21

1137

1143

1131

+6

1098

+39

22

1136

1157

1133n

+3

1101n

+35

28

674

681

665

+9

652

+22

30

646

650n

640n

+6

591

+55

32

576n

-

-

-

496n

+80

MC

795

794n

796

-1

828

-33

A STEADY START

The market did as we thought - moved ahead slightly as the EMI inched ahead by 2 cents to 1018. This figure may look wrong as the EMI was at 1022 last sale. Every year AWEX examines the regional indicators to see if any adjustments are needed. In years gone by when the AWC ran wool sales and market reporting the 3 indicator figures were calculated mainly from the individual merino fleece indicators. Nowadays, as the composition of the clip has changed drastically over the past 20 years, all sectors and types are put “into the mix” to come up with the different regional indicator levels. The fining up of the clip has been a big factor as well as the increased volume of crossbred wool in this time as well as the effect of skirtings and cardings which can also influence the individual indicators. All this led to AWEX adjusting the two Eastern seaboard centres’ indicators down by an average of 6 cents and pushed Fremantle’s up by 5 cents.

As far as this sale went most indicators rose with the finer microns the main beneficiaries as 17 to 19 micron lifted 5 to 15 cents with19.5 to 20 unchanged and the broader microns up to 5 cents better. Despite these lifts the indicator in Sydney actually lost 1 cent (1027), this due mainly to a fall of up to 20 cents for skirtings. In years gone by this would not have influenced the regional indicators. The broader end of the spectrum seems to be in a purple patch at the moment in Melbourne as 22 and 23s are at 1157 cents, 4 cents higher than their 18.5 indicator and just 28 cents lower than their 17.5 micron at 1185. Quite incredible the closeness of fine wool to the broader microns!

As just mentioned, the skirtings took a hit of up to 20 cents on Thursday with types under 6% VM most affected as the increasing volume of burrier types seems to be just what some exporters have been waiting for as “C” fault BKNs (8 to 15% VM) make up to mid 400 cents and carbonising (>15% VM) BLS reaching low to mid 300s - great money for these types. Cardings backtracked marginally as the MCI lost just 1 cent with locks the main culprit giving up 5 to 10 cents from last week. Conversely cardings in Melbourne and Fremantle were dearer with all 3 indicators now within 14 cents of each other, 781 to 795. Crossbreds improved as the sale progressed with all types adding 5 to 10 cents.

A modest start to the new selling season as the jump in the exchange rate to 94.6 on Wednesday wasn’t enough to spook the buyers as to when they need to buy - nothing will get in their way as lots with the right specs that did have up to 2% VM and high mid-breaks did come under renewed competition and were up to 25 to 30 cents higher than the indicator as one buyer chased some lots that were treated with “Pain Relief” and frequently paid “over the odds” for a few lots. We did have a fleece price in the top 5 prices nationally on Wednesday, 980 cents for a 16.1 micron lot yielding 73.6 from the foothills of the Warrumbungles. Well done to this grower to produce such a fine article under very trying conditions over the summer and autumn and still in recovery mode from the devastating bushfires 18 months ago.     

Next week wraps up selling as we move into a 3 week recess till the 1st week of August. All 3 centres will have catalogues totaling 41,000 bales - the largest weekly offering since the end of April.

Main Buyers (This Week)

1

Techwool

4301

2

Fox & Lillie

2313

3

Tianyu

2281

4

Lempriere (Aust)

2255

5

Aust. Merino Exp

2242

6

Michell

1863

7

Chinatex (Aust)

1789

8

Modiano (Aust)

1598

9

G Schneider

1236

 

Eastern Market Indicators (AUD cents/kg clean)                                    AUD/USD Currency Exchange

1018 cents é 2 cents compared with 27/06/2014                                   0.9381 ê 0.0022 compared with 27/06/2014

 

Northern Market Indicators (AUD cents/kg clean)

1027 cents ê 1 cents compared with 27/06/2014

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