Weekly Market Reports


9 February 2018

admin Macwool - Friday, February 09, 2018

WEEKLY MARKET REPORT

Week Ending 9th February, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S32/17

This Week

M32/17

Last Sale

S31/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2815

2761n

2705

+110

2080

+735

18

2428

2373

2330

+98

2002

+426

19

2165

2144

2090

+75

1795

+370

20

1999

1987

1901

+98

1562

+437

21

1893n

1891

1789

+104

1449

+444

22

-

-

1720n

-

1398n

-

26

1098n

1108n

1039n

+59

909

+189

28

791

785

718

+73

667

+124

30

603

576

542

+61

531n

+72

MC

1356

1328n

1300n

+56

1162

+194

WALL STREET CRASHES – WOOL MARKET RISES!

The market exploded into action this sale as futures trading early in the week indicated a rise in the market as they looked 20 to 40 cents higher than the last trades executed late on Friday. This author’s bold prediction of solid gains across the board were swamped as the opening days action saw sub 17.5 skyrocket by 100/120 cents as broader microns added 50 to 75 cents. The 2nd day of sales saw subtle increases of 10 to 50 cents to see the AWEX EMI crash through the 1800 cent barrier for the third time since sales resumed (1818). The shift in US$ terms wasn’t as extreme (+24 to 1423) due to the favourable FRX, a 7 day decline of over 2.5 cents to 77.94 this morning. As is the case in a market like this discounts for COL, TDR and high mid-breaks shrunk and premiums for best top-making, spinners style and better types become larger as buyers focused completely on quantity. Just 52 bales of fleece were passed-in in Sydney, a clearance of 99.2%.

Skirtings were also swept up in the buying frenzy as gains of 50 to 120 cents were commonplace with the ultra-fine selection < 3% VM 150 cents to the good. Only 9 bales failed to sell - 99.6% sold!! Cardings reversed last series’ falls and went some way to recoup the collapse of 2 weeks ago. The MCI in Sydney leapt by 54 cents as the Melbourne and Fremantle indicators jumped by an average of 110 cents. The XB market continues to confuse all and sundry as it also posted large gains, 50 to 75 cents across all microns as 26s are now the only micron behind levels that were reached after the opening sale’s jump a month ago.

The 80 cent jump in the EMI is the biggest weekly increase in seven years and the opening day’s 70 cent rise was the largest daily increase also since January, 2011. At 1818 we are just 4 cents shy of the record set on Tuesday 16th, January before the 5 sessions of losses. As it stands now 18s and finer and 20/21 micron are at record levels and 18.5 to 19.5s just a whisker from setting new records. The impetus for the accelerating market came on the back of a couple of reasons: new business was written and orders were to be filled promptly, the FRX depreciated against all our major wool buying countries and forecast volumes were not going to be enough to cover increasing demand. The long anticipated Wall St correction didn’t have any impact on the wool market. The national catalogue climbs back above 40,000 bales next week (43,000).

Ag Concepts Fwd Prices as at 9 February, 2018

Micron

Date

Low

High

21

18-Apr-18

1780

1780

21

30-May-18

1750

1750

21

26-Sep-18

1620

1620

Main Buyers (this week)

1

Techwool

7397

2

Fox & Lillie

4547

3

Aust. Merino

2741

4

Endeavour 

2345

5

PJ Morris

2060

6

Lempriere

1982

7

Seatech Ind.

1911

8

Tianyu Wool

1437

9

West Coast 

900

Eastern Market Indicators (AUD cents/kg clean)

1818 cents é 80 cents compared with 2/02/2018

Northern Market Indicators (AUD cents/kg clean)

1909 cents é 80 cents compared with 2/02/2018

AUD/USD Currency Exchange

0.7825 ê 0.0223 compared with 2/02/2018

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