Weekly Market Reports


8 April 2016

admin Macwool - Friday, April 08, 2016

WEEKLY MARKET REPORT

Week Ending 8th April, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S41/15

This Week

M41/15

Last Sale

S39/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1548

1525n

1515

+33

1347

+201

18

1506

1492

1458

+48

1305

+201

19

1463

1444

1405

+58

1220

+243

20

1428

1408

1365

+63

1189

+239

21

1410

1393

1348

+62

1173

+237

22

1395n

1381

1333n

+62

1135n

+260

26

1014

1034n

976n

+38

930n

+84

28

820

801

811n

+9

838

-18

30

706

692n

695n

+11

802

-96

MC

1089

1091

1091

-2

949

+140

 from strength to strength at iwto

 It came as no surprise this week that we saw a stronger market in front of 470 delegates from 23 countries representing all sectors of the wool pipeline at the 85th Annual International Wool Textile Organisation conference at the Four Seasons Hotel, Circular Quay.

What was a little surprising was the amount of strength shown, particularly in the fleece categories (where it matters most), across all microns. Our expectations were for, at least, a 20 cent rise which was being tipped to be 10 cents for the conference and 10 cents for demand. Instead it looks we got 15 cents for the conference and the rest genuine demand. We say that as Melbourne, which sold a day behind Sydney fell 10-15 cents yesterday.

Macwool had a larger than normal catalogue of 1,773 bales selling all but two bales for a gross return of $2,536,815 at an average of $1,432 a bale. An outstanding result given this included all oddments, crossbreds and a considerable amount of our fleece section carrying high vegetable fault. These types were up to 100 cents clean dearer than the pre-Easter sale. We were very pleased to see clients make the effort to attend from Coolah, Coonabarabran, Gulargambone, Nymagee and Wilcannia.

Inside the conference it was generally upbeat, certainly compared to previous conferences I have attended. Several factors can be attributed to this. Firstly, the lowest national wool clip since 1925 and forecast to go lower is a major factor going forward. Secondly, and probably more importantly, wool is now placed as a luxury fibre and the rich are getting richer across the world. The key luxury spenders worldwide are identified as the 40-65yo bracket with household incomes over US$125,000 pa. At present China only has 1% of this category but by 2025 there will be an extra 100 million Chinese in this category and largely they are done with buying a house and furnishing it so they move on to spending  money on themselves. 10 years ago we were told the cheap suit was the quickest way for the up and coming Chinese to show affluence - today they now want better quality suits. One of the conference speakers was Paulo Zegna head of Ermenegildo Zegna which has expanded rapidly to 523 stores world wide on the back of luxury suits.

There are plenty more stories to come about wool’s resurgence but that will have to wait for another time. Next week we offer 1147 bales on Thursday for the first time at Yennora in a month!  

Ag Concepts Fwd Prices at 8 April 2016

Micron

Date

Low

High

21

11-May-16

1370

1400

19

6-Jul-16

1405

1405

21

21-Jun-17

1300

1300

 

Main Buyers (This Week)

1

Techwool

7758

2

Chinatex

4196

3

Lempriere (Aust)

4099

4

Global Wool Exp.

3288

5

Modiano

2867

6

Aust. Merino Exp.

2559

7

Fox & Lillie

2352

8

Tianyu Wool

2213

9

PJ Morris

1941

 

Eastern Market Indicators (AUD cents/kg clean)

1270 cents é 31 cent compared with 25/03/2016

Northern Market Indicators (AUD cents/kg clean)

1298 cents é 37 cents compared with 25/03/2016

AUD/USD Currency Exchange

0.7625 é 0.0002  compared with 23/03/2016

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