Weekly Market Reports


7 March 2014

admin Macwool - Monday, March 10, 2014

WEEKLY MARKET REPORT

Week Ending 7th March, 2014

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S36/13

This Week

M36/13

Last Sale

S35/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1328

1316n

1352

-24

1442

-114

18

1273

1263

1294

-21

1369

-96

19

1222

1219

1229

-7

1318

-96

20

1188

1192

1205

-17

1255

-67

21

1186

1189

1201

-15

1237

-51

22

1182

1177

1191n

-9

1220

-38

26

748n

759n

740n

+8

1191n

-443

28

669

675

667

+2

637

+32

30

634

634

630

+4

605

+29

32

564

565n

560n

+4

496

+68

MC

812

827

815

-3

740

+72

STEADY AS SHE GOES….

What goes up unfortunately has a habit of coming down; it looks as if the buyers can’t make up their minds as to which way they want the market to move. Last week’s subtle movements upwards were wiped out this week as the benchmark AWEX EMI lost 5 cents as against a 3 cent rise the sale before. Most indicators suffered losses of 10 to 20 cents with 17s suffering the biggest fall giving up 25 cents. These larger falls than Melbourne (most microns only 5 cents off in the south) came as a result of coming off a stylish super-fine offering the week before. In US terms the market actually rose 3 cents as the exchange rate moved higher to above 90 cents. In the last major selection of super-fine this season, New Zealand Merino offered 2,400 bales of which 43% was passed in and 51% was re-offered sending a clear signal to the buying trade that these prices being touted for sub 18 micron fleece types are not up to growers’ expectations across the ditch, or indeed to our friends in the New England and Goulburn areas.

Skirtings mirrored the fleece movements as an opening day loss of 15 to 20 cents was somewhat negated by a firming market on the final day. The carding market was split in two as a solid opening day led to a sharp fall for stains (back by 30 cents) on the final day to see the MCI lose 3 cents for the week. Crossbreds bucked the falling trend of their merino counterparts as solid gains late in the week saw increases of 5 to 10 cents in Sydney and 5 to 20 cents in the south. This price rise could be due to a drop in supply for this sector - back to 22% of the selection on the Eastern Seaboard as quantity should slowly dwindle as we move into autumn shearing.

Techwool flexed their muscle this week to top the buying list in all sectors bar the merino skirtings - in all buying over 5,500 bales for the week. Fremantle based PJ Morris were second in the fleece sector with Michell P/L buying 14% of the oddment catalogue and the big Chinese top-maker, Tianyu, way out in front for merino skirtings buying 20% of the selection.

Now onto China: our intrepid travellers haven’t got lost yet and seem to be enjoying themselves. Monday was spent in Hong Kong hosted by AWI.  The day started with a tour through a high end knitwear factory, L plus H, a small boutique factory employing just 60 people. They produced sweaters, cardigans, dresses, jackets and coats. The quality of the workmanship was outstanding as the attention to detail was very impressive down to the tape measure being run over sleeve, collar and leg size time after time. Next was a visit to the AWI/Woolmark offices in Hong Kong where everyone left in no doubt that your 2% wool tax levy is being well invested - especially in this part of the world where so much wool finishes up. Next was a visit to the Hong Kong Textile and Clothing University where students are educated for the apparel and fashion industries. This facility came complete with carding machines to spinning, weaving and dyeing machines. The visit also coincided with a fashion show opening complimented with Aussie wine!

Next week's sale will see the 4th sale in a row that national totals are in low to mid 40,000s. This still may not be enough to give the market a lift by itself. We will need a lift in demand to help the market to rise.         

Main Buyers (This Week)

1

Techwool

5521

2

Fox & Lillie

3383

3

Chinatex (Aust)

2981

4

Lempriere (Aust)

2702

5

Tianyu Wool

2384

6

Aust. Merino Exp

2152

7

PJ Morris

1468

8

Modiano (Aust)

963

9

H Dawson 

480

 

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

1072 cents ê  5 cents compared with 27/02/2014                       0.9011 é 0.0069 compared with 2/02/2014                          

 Northern Market Indicators (AUD cents/kg clean)

1088 cents ê  7 cents compared with 27/02/2014

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