Weekly Market Reports


5 December 2014

admin Macwool - Friday, December 05, 2014

WEEKLY MARKET REPORT

Week Ending 5th December, 2014

 

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S23/14

This Week

M23/14

Last Sale

S22/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1274

1250

1293

-19

1423

-149

18

1260

1247

1285

-25

1394

-134

19

1215

1216

1216

-1

1331

-116

20

1182

1172

1182

0

1284

-102

21

1161

1163

1161

0

1274

-113

22

1152n

1144

1152n

0

1254n

-102

26

833

831n

825

+8

775n

+58

28

735

723n

714

+21

679

+56

30

698

685

684

+14

640

+58

MC

798

808n

790

+8

812

-14

LARGE VOLUMES CATCH UP TO THE MARKET

This week’s wool market couldn’t sustain last sale’s levels and tapered on Thursday to see the AWEX EMI lose 2 cents, now 1054. In US terms the drop was much bigger - a 23 cent fall to 884 cents - this due to the 2 cent fall in the exchange rate as the A$ sits under 84 cents for the first time in 4 years. If the $ had not fallen most buyers were talking a drop of 20 to 30 cents across the board. The currency reacted after the poor growth figures were released on Tuesday, just 0.3% growth for the September quarter, putting more cuts in interest rates firmly on the RBA’s agenda in the opening six months of 2015. The December quarter will grow due to Christmas spending but the economy faces some tough times going into 2015 as commodity prices continue to fall and growth in Europe is stagnant at best and China slows but the world’s largest economy, USA, continues to improve.

The market started slowly but picked up mid-week only to fade on Thursday. Finer types took the brunt of the falls, coming off last sale’s superior selection - 18.5s and finer lost 10 to 25 cents as 19s and broader were unchanged. The selection is improving as best style, <40nkt and low mid-break types are now outnumbering the inferior types. Again the buyers are picking the eyes out of them with a few lots in our catalogue making 25 cents above the indicator.     

Skirtings had an uneventful sale as all types and descriptions remained rock solid to sellers’ favour with emphasis on the burrier types. Cardings had another solid sale as all 3 centres benefitted from renewed competition. All types and descriptions were in good demand gaining 5 to 15 cents across the board. This puts the MCI at 798 in Sydney and the other 2 centres at 800 or better - a great level for these types. The big crossbred offerings of the past few sales lightened off to 16% (8,800 bales) of the national catalogue. This, coupled with the favourable exchange rate, saw prices kick on adding 10 to 20 cents for most categories. This now places 28 to 32 microns at or near 12 year highs, again a fantastic level for these types.

The penultimate sale of the year probably did what we had feared for a few weeks: a sliding market under the weight of big volumes. This week’s catalogue was the largest in 12 months and, if next week’s withdrawals are small, at 62,300 bales it will be the largest sale since April, 2008. This will almost certainly put the market under pressure as Fremantle lost 12 cents on Thursday. Even if the exchange rate is favourable and a three week recess to follow we may see buyers get their wish with a cheaper market. Hopefully the exporters can find a bit of Christmas cheer!!

Ag Concepts Fwd Prices at 5 December

Micron

Date

Low

High

28

4-Feb-15

710

710

21

9-Dec-15

1150

1150

                                                                                                                                                                                  

 

Main Buyers (This Week)

1

Techwool

6228

2

Fox & Lillie

6046

3

Chinatex

4577

4

Aust. Merino Exp

4018

5

Modiano

3257

6

Lempriere

2780

7

Tianyu

2539

8

Kathaytex (Vic)

1872

9

G Schneider (Aust)

852



                   

Eastern Market Indicators (AUD cents/kg clean)

1054 cents ê 2 cents compared with 28/11/2014

AUD/USD Currency Exchange

0.8386 ê 0.0201  compared with 28/11/2014

Northern Market Indicators (AUD cents/kg clean)

1079 cents ê 1  cents compared with 28/11/2014

 

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