Weekly Market Reports


8 December 2017

admin Macwool - Friday, December 08, 2017

WEEKLY MARKET REPORT

Week Ending 8th December, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX    

This Week    

S23/17    

This Week    

M23/17    

Last Sale    

S22/17    

Sydney    

Change    

Last Year    

Sydney     

Sydney Yearly  

Change     

17     

2477

2471

2459

+18

1767

+710

18     

2273

2267

2270

+3

1717

+556

19     

2015

2023

1999

+16

1608

+407

20     

1794

1803

1773

+21

1481

+313

21     

1669

1658

1649

+20

1401

+268

22     

1581n

1564

1569n

+12

1367n

+214

26     

1064

1098

1035

+29

954n

+110

28     

772

771

718

+54

681

+91

30     

571

594

534

+37

600

-29

MC     

1433

1454

1382n

+51

1139n

+294

 

THE EMI TEETERS ON THE EDGE OF 1700 CENTS!

After a steady start to the week the wool market fired up again late Wednesday and Thursday to surge towards an EMI of 1700 cents rising 23 cents for the week. It pulled up one cent short at 1699.

The big improvers for the week were the crossbred types which saw buyers panicking to fill orders as the Christmas recess looms and available days for shipment diminish. All types were hotly contested as buyers (operating principally for China) scrambled to buy anything that resembled wool! Sale of the day for us was a line of bellies containing over 30% burr selling for 1340 cents clean (469 cents greasy) whilst there was disappointment for the writer as his crutchings couldn’t quite manage 1000 cents greasy! The overall picture was aided by a dollar that was slightly cheaper in $US terms, hence also in Chinese Renminbi as well. This softened the blow with the rise in US dollar conversion only being 11 cents overall. Total wool sales this week grossed just over $90 million for an across the board average of $1895 per bale.

For the first four months of the season the volume of wool exports was up by 10% against last year to 106.7 mkg which was the largest volume exported in 8 years. The value of those exports totaled $1107 million - an increase of 26% over last season and the highest value for the period since 2002/03 when there was almost 50% more wool. For the same period other fibre prices have also lifted globally, particularly in China. Polyester in China has risen by 12% in the past four months and acrylic has risen by 20%. In US$ terms the EMI has risen 5% for the same period so it seems that there is no reason to be nervous about wool outpricing itself although the price relativity for superfine against synthetics is quite high.

Other data also just released was the latest breakup of National Wool Declaration (NWD) information to the end of November. Of all wool offered 65% carried the NWD with non-mulesed at 10.4%, pain relief 31.9% and ceased mulesed 2.8%. Year on year non-mulesed wool increased by 3% and PR increased by 8%.  It would be good to see a higher declaration rate than 65% but it has increased about 15% over the past two seasons so now could be considered as critical mass.

The big question for the short term is, “Will this strength continue to the final whistle next Thursday?”. There is a large offering of 52,000 bales up next week and buyers wishing to ship prior to Christmas will have to have quick payment and quick delivery through dumps to port to achieve it otherwise it will be early January before things get moving again. Macwool will be selling on the first day in Sydney next Wednesday with reasonable expectations of a good sale.

Ag Concepts Fwd Prices at 8 December 2017

Micron

Date

Low

High

21

28-Mar-18

1625

1625

21

9-May-18

1595

1595

21

27-Jun-18

1569

1569

Main Buyers (this week)

1  

Techwool   

7800   

2   

Fox & Lillie  

5820  

3   

Australian Merino 

4467  

4  

Endeavour Wool   

3085   

5   

Michell Aust.  

2844 

6   

Tianyu Wool  

2546  

7  

PJ Morris   

2098   

8   

Seatech Ind.  

1895  

9   

Modiano 

1703  

Eastern Market Indicators (AUD cents/kg clean)

1699 cents é 23 cents compared with 01/12/2017

Northern Market Indicators (AUD cents/kg clean)

1782 cents é 26 cents compared with 01/12/2017

AUD/USD Currency Exchange

0.7550 ê 0.0035 compared with 01/12/2017

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=720824&A=Trackback
Trackbacks
Post has no trackbacks.