Weekly Market Reports


8 July 2016

admin Macwool - Friday, July 08, 2016

WEEKLY MARKET REPORT

Week Ending 8th July, 2016

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S01/16

This Week

M01/16

Last Sale

S53/15

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1579

1563

1548

+31

1498n

+81

18

1554

1545

1516

+38

1438

+116

19

1516

1520

1481

+35

1356

+160

20

1503

1503

1462

+41

1317

+186

21

1492

1493

1449

+43

1313

+179

22

1469n

1466

1428n

+41

1293n

+176

26

1072n

1098n

1104n (M)

-6 (M)

1063n (M)

+35

28

755

753

779n

-24

894n

-139

30

650

644n

678n

-28

795n

-145

MC

1088

1080

1084

+4

1036

+52

SEASON OPENS WITH A BANG!

The opening sale of the new season started with a bang as solid rises over both selling days saw the benchmark AWEX EMI smash through the 1300 cents mark to finish the sale at 1320 (a 23 cent rise for the week), up 1.77% - the best start to a selling season in 11 years. In US$ terms the rise was 28 cents to 993, the biggest move in any direction since September. This is the 4th week of rallies that has pushed the EMI to a 12 month high. The increase in prices was across the board, 25 to 45 cents for 16.5s out to 23 micron. At 1492 cents 21s are closing in on the 1500 cent mark where they spent just 1 day above this point in June, 2015, and before that for a brief period in the winter of 2011 - certainly in rarified air!! The all time record for 21 micron was in 1988 at 1682. We had a 21 micron fleece lot from Walgett make 1511 with 3 other lots from the same grower (20 micron types, slightly tender) make in the 1520 cent range yesterday.. The better style finer FNF types added 40 to 50 cents to their values. Growers warmed to the new level of prices as 98.6% was cleared to the trade across the 3 centres as just 346 bales were passed-in from 24,777 in the fleece sector.

Skirtings took their lead from the fleece room as the initial rises were maintained through to the end of the sale. The low VM types <5% added 5 to 10 cents where the heavier VM lots >5% were most sought after by the trade climbing 20 to 30 cents. The rise in the exchange rate when we sold was the catalyst for the crossbred sector to lose more ground (the 6th sale in a row) as most indicators gave up 20 to 30 cents. Cardings had a quiet sale as the 3 centres were just in sellers’ favour in this sector, all MCIs up by 5 cents as locks gained 5 to 10 cents while other types were unchanged.

The largest national offering in 7 weeks (39,000 bales) and the currency fluctuations of about 1 cent failed to adversely affect the market, the opposite in fact. The bigger volume this sale and next week’s similar size offering are due to some growers holding wool back till the new financial year ticks over. In what must be a first for a very long time, not a single bale was withdrawn from the 13,700 bales offered in Sydney. In fact, withdrawn lots across the 3 centres accounted for only 0.8% (365 bales) from 39,152 offered.  

Outside factors looked to have no bearing on the market. Widespread enquiry for new business from China and India and, to a lesser extent, Europe was the catalyst for the market’s upward trend. As news came through that next week’s rostered quantities had ballooned out to 40,000 from 33,000 last Friday there was a slight pull back in bidding late yesterday but not enough to temper the current mindset of buyers still keen to book up wool this morning. Activity was busy on the futures front as over 200 tonnes was forward sold out to April 2018 by both companies that look after this type of transaction. We locked in about 20 tonne out to September. We sell late next Wednesday with 1,600 bales on offer to a solid market from all accounts.

Ag Concepts Fwd Prices at 8 July 2016

Micron

Date

Low

High

21

24-Aug-16

1400

1450

21

26-Oct-16

1350

1350

19

11-Jan-17

1430

1430

19

12-Apr-17

1435

1435

 

Main Buyers (This Week)

1

Techwool

6421

2

Chinatex

4303

3

Fox & Lillie

3230

4

Lempriere (Aust)

3223

5

PJ Morris

3050

6

Kathaytex Aust.

2555

7

Modiano

1583

8

Tianyu Wool

1280

9

Aust. Merino Exp

1037

  

Eastern Market Indicators (AUD cents/kg clean)

1320 cents é 23 cent compared with 01/07/2016

Northern Market Indicators (AUD cents/kg clean)

1341 cents é 24 cents compared with 01/07/2016

AUD/USD Currency Exchange

0.7524 é 0.0085  compared with 01/07/2016

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