5 October 2018

WEEKLY MARKET REPORT

Week Ending 8^th October, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX	This Week S14/18	This Week M14/18	Last Sale S13/18	Sydney Change	Last Year Sydney	Sydney Yearly Change
17	2869	2773	2948	-79	2253	+616
18	2583	2542	2615	-32	2112	+471
19	2346	2346	2358	-12	1844	+502
20	2225	2221	2220	+5	1654	+571
21	2186	2166	2178	+8	1571	+615
22	-	2166	-	-4 (M)	1500n (M)	+666 (M)
26	1351n	1443n	1401n	-50	1069n	+282
28	904n	880	-	-30 (M)	788	+116
30	701n	729	-	-1 (M)	535	+166
MC	1385	1438n	1419	-34	1163n	+222

HIT AND MISS BUT GREAT IF YOU WERE LUCKY!

Some great falls were recorded over the past couple of days. Sadly some areas that needed it the most had little reprieve but around Dubbo up to 65mm fell and north of Brewarrina 50mm, so there’s a few who are smiling today.

The wool market didn’t have a great week offering 39,261 bales with the EMI losing another 21 cents which makes it 100 cents in the last three weeks. Most of the pain was felt at the very fine end with 16.5 losing 100 cents this week. The other sector to record significant losses was the burry types and, as the VM rose, the discounts went in step. The middle micron and low VM types actually fared quite well posting gains particularly on the final day giving some confidence that we may be about to turn the corner. The dollar did plunge yesterday to be almost two cents lower than last week so hopefully this will help arrest the fall. On that, currency movements cannot be blamed on the easing market as the EMI in USD terms over the past three weeks has fallen roughly the same amount.

As we said a few weeks ago two areas of concern are that cardings historically appear unsustainable and have been supply driven for some time and the remainder of the merino market is now in a supply driven phase whereas, up until recently, it was demand driven. The fear of supply will see erratic movements as processors from time to time will scramble to source raw material. All eyes are on the monthly data coming out of AWTA and this week the July-September data was released showing nationally a decline of 11.4% less wool tested and September, in isolation, was a scary 19.3%. NSW for September was down 33% compared to last year!

Just a reminder for those who wish to hear first hand about AWI’s performance and projects, particularly with WoolPoll on there will be a lunchtime event at Dunedoo Showground next Monday at 11am, and a 5pm meeting at the Wellington Soldiers Club. We urge you to make the time to come along, have a listen, ask questions and take some time out. Please call 1800 070 099 to register at no cost.

Next week a smaller offering of 34,500 bales will be offered with hopes pinned on a turnaround in fortunes which would go well with more rain!

Ag Concepts Fwd Prices at 5/10/2018

Micron	Date	Low	High
21	28-Nov-18	2200	2200

Main Buyers (This Week)

1	Tianyu	4481	2	Techwool	4325	3	Seatech Ind.	3871
4	Fox & Lillie	3337	5	Aust. Merino	3336	6	PJ Morris	1711
7	Endeavour Wool	1393	8	Michell Aust.	1317	9	Kathaytex Aust.	1154

Eastern Market Indicators (AUD cents/kg clean)

1992 cents ê 21 cents compared with 28/09/2018

Northern Market Indicators (AUD cents/kg clean)

2050 cents ê 24 cents compared with 28/09/2018

AUD/USD Currency Exchange

7080 ê 0.0178 compared with 28/09/2018

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Weekly Market Reports

5 October 2018

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