Weekly Market Reports


6 November 2015

admin Macwool - Friday, November 06, 2015

WEEKLY MARKET REPORT

Week Ending 6th November, 2015

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S19/15

This Week

M19/15

Last Sale

S18/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1505

1494n

1506

-1

1298

+207

18

1469

1470

1484

-15

1270

+199

19

1385

1377

1407

-22

1196

+189

20

1318

1319

1354

-36

1153

+165

21

1304

1308

1341

-37

1147

+157

22

1288n

1295

1328n

-40

1136n

+152

26

1024n

1031n

1050n

-26

813n

+211

28

863

861

878

-15

684

+179

30

823

810n

840

-17

657

+166

MC

1064

1059

1077

-13

785

+279

BACK ON THE ROLLER COASTER!

The widespread rain across the region has some growers jumping for joy as the best single fall in up to three years was recorded in areas around Bourke, Brewarrina and Walgett but as the author was driving back to Dubbo today from Brewarrina he could see many farmers in between would be wincing with canola windrowed and wheat still standing.

Otherwise a great change and western district wool growers jumping for joy.

Back to the wool market … Early talk this week was for a softer tone as many traders were still scratching their heads about why the market jumped on average 80 cents over the past two weeks. The push came largely from two larger traders and the others only followed through fear and curiosity. Wednesday’s market for us, selling reasonably early, wasn’t as bad as we feared as we saw a good clearance and some previously passed in lots making considerably more than when they were offered back in July (when the EMI was higher). What was also interesting was that the higher VM lines which are starting to appear weren’t neglected although the market was showing signs of easing. Over the two days of selling though, middle micron fleece wools did ease both days and it was the longer high mid break types that felt the worst of it. Better spec types in the 65-90 mm range didn’t fair too badly, especially if they were also non mulesed. Low VM skirtings actually got dearer as the week progressed whilst most other skirting types maintained levels. Cardings gave up a bit of ground but who’s caring about that at these levels? All these types are in uncharted territory and it seems this trend will continue. Consequently there are none held back and demand will continue from all reports.

It is of some concern after being at several shearings recently that the good winter in many areas is now converting into higher VM on fleece and oddments. One would expect that as the ratio of higher burr content increases one would anticipate discounts for such to increase. As yet this hasn’t been seen and wasn’t evident this week but we would imagine it to be just around the corner.

The latest test data from AWTA would have many exporters concerned as, at the end of October, the YTD volumes have slipped 7.5% against last year and the forecast offerings for the next three weeks are about 8,000 bales a week lower than what was offered last year. So it’s pretty clear that the recent push was a supply concern by a couple of larger traders but this may have not necessarily flushed orders out for others, hence the retreat this week.

Next Monday the 9th, Macwool and Macrural are holding an information afternoon from 4pm at Willamurra, Brewarrina (about 80ks south east of Bre), followed by refreshments and a BBQ. More importantly, there are six presentations to fill in the afternoon from internal parasites, external parasites, animal production, sheep handling equipment and an update on the wool market and the stock market, all from highly credentialed presenters. Please feel free to come along for the afternoon & evening.

Next week we sell on Thursday with a quick rebound unlikely but supply unlikely to let the market move much lower. One thing is certain, better spec types that sit in the “comfort” zone will fare better if the market is still unsure of direction.

Eastern Market Indicators (AUD cents/kg clean)

1234 cents ê 16 cents compared with 30/10/2015

Northern Market Indicators (AUD cents/kg clean)

1259 cents ê 19 cents compared with 30/10/2015

 AUD/USD Currency Exchange

0.7155 é 0.0044  compared with 30/10/2015

 

Main Buyers (This Week)

1

Chinatex

5657

2

Techwool

5082

3

Tianyu Wool

2901

4

Lempriere

2711

5

Modiano (Aust)

2234

6

Fox & Lillie

2088

7

Australian Merino

1936

8

Vic Wool Proc.

1390

9

West Coast

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