Weekly Market Reports


7 September 2018

admin Macwool - Friday, September 07, 2018

WEEKLY MARKET REPORT

Week Ending 7th September, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week  

S10/18  

 This Week  

M10/18 

Last Sale   

S09/18  

Sydney Change

Last Year

Sydney 

Sydney Yearly

Change

17 

2989    

2903    

2968    

+21    

2273    

+716    

18 

2669    

2616    

2651    

+18    

2139    

+530    

19 

2443    

2414    

2418    

+25    

1839    

+604    

20 

2324    

2296    

2311    

+13    

1646    

+678    

21 

2285    

2259    

2286    

-1    

1597    

+688    

22  

-    

2259    

-    

-23 (M)    

1509n (M)    

+750 (M)    

26  

1486n    

1521n    

1489    

-3    

1141    

+345    

28  

968    

974    

965    

+3    

852    

+116    

30  

728n    

739     

731n    

-3    

636    

+92    

MC 

1563    

1583n    

1560    

+3    

1089n    

+474    

HOLDING PATTERN AWAITING NEW DIRECTION

As each week passes the picture becomes clearer about the effect drought is having on supply. Whilst production in our area has been impacted gradually over the last 12 months, a much wider area is now feeling the brunt of lower numbers and reduced cut. Added to this is the higher market over the past season that has flushed out nearly all held wool either on farm or in store. For the first seven selling weeks of this season there has been 39,000 bales less wool offered compared to last season. That is roughly the same amount of wool that was offered this week, so already we have dropped a full week’s offering!
The market opened on Wednesday full of promise and looked to be continuing the previous week’s upward trend but on Thursday the dollar rebounded slightly and by the end of the day the wool market had retreated roughly the same amount and the end result was little change. The crossbred offering was the smallest in three years but it had little effect on price movements. Generally, the finer microns continued to hold promise but the increasing amount of drought affected dusty wools, even in the Southern market, are having an impact.
The Nanjing Wool Market conference will be held in just over a week’s time and, as this is now a focal gathering not just for Chinese buyers but globally, there is a bit of “wait and see” till after the conference. Some pundits feel that supply pressure is building and the conference will no doubt focus on this and then we expect a clearer direction.
Over the coming weeks all wool levy payers will receive information about the upcoming Wool Poll. Every three years wool growers get the opportunity to vote on the level of wool levy they are prepared to pay. There will be 5 options ranging from 0% to 3%. Currently it is 2% and has been since AWI commenced nearly 20 years ago. The levies are proportioned out to 40% research and development and 60% marketing and promotion. Marketing was only reintroduced in 2010 and there is good evidence to suggest that this component has reaped good rewards for levy payers. Up until this year wool production has been relatively stable (around 340-350 mkg) and demand has increased to a point where the EMI has risen 783 cents (60%) in two years. The most recent production forecast has it falling to 322 mkg. Many of us believe it will be lower than that. There will be public discussion no doubt that AWI can survive on a lower levy. I am concerned that production will not bottom out for some time yet and now is not the time to prune heavily. We will have more on this as the weeks progress.

Finally, IWTO is running a promotion on our fibres great properties through an Instagram promotion of your farm videos and photos of sheep and wool.  Please see the attachment with our weekly report and join in to promote our great fibre worldwide. A smaller offering of 35,000 bales will commence Wednesday.


   

NCWSBA Weekly Newsletter Supplements (Sept 2018) NCWSBA Weekly Newsletter Supplements (Sept 2018) (400 KB)


                                
Ag Concepts Fwd Prices as at 7 September, 2018

Micron

Date

Low

High

21

23-Jan-19

2150

2150

 

Main Buyers (this week)

1

Techwool

5721

2

Seatech Ind.

3944

3

Kathaytex Aust.

2960

4

Lempriere

2286

5

Aust. Merino

2104

6

Fox & Lillie

1685

7

Michell Aust.

1209

8

Tianyu

1181

9

PJ Morris Wool

862

Eastern Market Indicators (AUD cents/kg clean)

2088cents ê 2 cents compared with 31/8/2018

Northern Market Indicators (AUD cents/kg clean)

2153 cents é 8 cents compared with 31/8/2018

AUD/USD Currency Exchange

0.7168 ê 0.0084 compared with 31/8/2018

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