Weekly Market Reports


7 July 2017

admin Macwool - Friday, July 07, 2017

WEEKLY MARKET REPORT

Week Ending 7th July, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S01/17

This Week

M01/17

Last Sale

S52/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2192

2160

2200n

-8

1579

+613

18

2118

2085

2130

-12

1554

+564

19

1845

1864

1859

-14

1516

+329

20

1618

1624

1634

-16

1503

+115

21

1529

1541

1543

-14

1492

+37

22

1462n

1468

1476 (M)

-8 (M)

1469n

-7

26

1101n

1103n

1103

-2

1072n

+29

28

759

765n

756

+3

755

+4

30

549

558n

558

-9

650

-101

MC

1164

1163n

1184n

-20

1088

+76

MARKET ESCAPES ALMOST UNSCATHED!

The opening sale of the season saw the largest national catalogue (51,000 bales) on offer since the Easter Show sale in April. Forecasts of a solid market seemed to fade as the week progressed. The favourable FRX and a trickle of business that was written late last week wasn’t enough to have the market hold onto current levels. A general softening of prices had all merino indicators 5 to 15 cents lower than last sale. As has been the pattern of buying for a long time, good types with the right “specs” came under spirited competition as the burrier lots (4% VM) looked to be under pressure from the increase in volume of these types and were discounted accordingly. The AWEX EMI gave up just 1 cent to 1524 and fell by 9 cents to 1158 in US$ terms. These levels are actually above last sale’s levels (1507 and 1154), this due to the readjustment of the 3 regional indicators and the EMI which is done periodically by AWEX.

For the 2nd sale running skirtings defied their fleece counterparts and mostly moved ahead. The better style, sub 18 micron types with < 6% VM lifted by 20 cents while all others were rock solid bar lots with heavy col/cott still attracting large discounts with some 10/15% VM types irregular. Cardings started the sale on par with the previous session but a change of sentiment on the final day saw all types in this sector fall by 20 to 30 cents. Crossbreds started the season with mixed results as finer types < 28 micron finished either side of last sale’s levels as broader microns (> 28) lost 5 to 10 cents.

This was a somewhat disappointing result to the opening sale of the new season. After a bit of business was written late last week and the currency falling to, at one point, below 76 cents from a high of over 77.55 hopes that the big offering could be absorbed evaporated early this week even though, on reflection, the fall could have been a lot larger than we had. The market held up in part due to one of China’s largest indent buyers re-entering the market after a quieter past 4 weeks seemingly not deterred by the increased volume. Other buyers in the fleece room soon sensed no slow down in their buying strategy so these rivals had to pick up the slack to acquire inventory to fill sold positions or provide future trading fodder.  Most buyers initially stuck to a buy-in price level rather than letting volume dictate purchasing patterns. New business was sporadic early in the sale but as prices failed to fall away less than most expected, demand increased and looks set to filter into next sale - the final before the 3 week winter recess.     

In news from AWTA, testing figures now reveal that Dubbo is now the 5th largest testing site in the country testing 104,000 bales last season. Fremantle was the biggest coring centre followed by Geelong, Adelaide and Melbourne with Goulburn behind us. Next week has 47,000 bales on offer; we sell late on Thursday with 1688 bales catalogued.

Ag Concepts Fwd Prices at 7 July 2017

Micron

Date

Low

High

21

23-Aug-17

1500

1505

21

12-Sep-18

1350

1350

Main Buyers (This Week)

1

Techwool

7690

2

Fox & Lillie

4078

3

Seatech Ind.

3902

4

Aust Merino Exp.

3562

5

Tianyu

3381

6

Lempriere Aust.

3337

7

Michell

2838

8

PJ Morris

2782

9

Modiano

2429

  

Eastern Market Indicators (AUD cents/kg clean)

1524 cents ê 1 cents compared with 30/06//2017

Northern Market Indicators (AUD cents/kg clean)

1593 cents ê 6 cents compared with 30/06/2017

AUD/USD Currency Exchange

0.7600 ê 0.0055  compared with 30/06/2017

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