Weekly Market Reports


9 March 2018

admin Macwool - Friday, March 09, 2018

       WEEKLY MARKET REPORT

            Week Ending 9th March, 2018

          AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S36/17

This Week

M36/17

Last Sale

S35/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2802

-

2826

-24

2235

+567

18

2395

2353

2407

-12

2143

+252

19

2085

2043

2136

-51

1902

+183

20

1958

1932

2001

-43

1638

+320

21

1887

1883

1928n

-41

1501

+386

22

1863n

1838

1903n

-40

1439n

+424

26

1170

1198n

1152n

+18

1003

+167

28

808

820

805

+3

756

+52

30

580

570

583

-3

583

-3

MC

1319n

1299

1339n

-20

1231n

+88

 

BUYERS EXACT REVENGE!

As we forecast last report finance problems were on the horizon for buyers as the largest catalogue since mid January loomed. From the outset prices in all categories (bar XBs) came under pressure and retreated from the opening lot. By week’s end losses ranged from 10 to 50 cents for all microns out to 22s. The AWEX EMI gave up 52 cents to close at 1778 - the losses not as severe in US$ terms, back by 22 cents to 1393. The rising A$ to 78.3, up by 1.3% for the week, kept this figure from being any larger - this shift in FRX also contributing to the losses. Buyers extracted some revenge especially for high VM lots and high mid-break types, some of these up to 100 cents cheaper than last sale. Also on the “discount” radar is prem shorn fleece wool that measures < 70 mm. These 6 to 8 month shearings are becoming more popular but, if below the desired length, discounts come into play. Conversely, the low VM types (< 2% VM) with low mid-breaks were in high demand as their quotes looked solid from previous sales.

Skirtings also took their biggest hit for some time. The low VM lots < 3% lost 30/40 cents while the burrier types gave up 60 to 70 cents and more (up to 100 cents) for lots with excessive col/cott. Cardings continued to weaken as all types in this sector were 15 to 30 cents off the pace except for the odd LMS lot. XBs were the only sector to record any gains as 28 and finer gained up to 15 cents (their 5th weekly rise in a row) while broader microns were in buyers’ favour.

A tough sale as FRX and finance problems came to a head to have the EMI record its largest weekly loss since the end of January. As noted earlier, it was the inferior types that held sway to push the indicators down, these wools now dominating catalogues as we see more and more drought affected wool hit the market with a big price gap between these types and the fewer better style lots bound to widen, hopefully the better style wools will increase in value and the inferior types hold but a fall in prices is the favoured prediction.

The ABARES Outlook Conference was held in Canberra this week and with it came their release of 5 year forecasts for agricultural industries. Predictions for the EMI are a steady increase to 2015c/kg by 2022/23 to see the clip worth $5.74b by this time and sheep numbers to grow to 83 million in the same period.  We sell 1st on Wednesday next week, hopefully the market can steady.

Ag Concepts Fwd Prices as at 9 March, 2018

Micron

Date

Low

High

21

6-Jun-18

1770

1770

21

26-Sep-18

1640

1640

 

Main Buyers (this week)

1

Techwool

4095

2

Fox & Lillie

3879

3

Seatech Ind

3483

4

Aust. Merino Exp.

2832

5

Endeavour  Wool

2759

6

Tianyu

2407

7

Kathaytex (Vic)

2246

8

Lempriere

2208

9

Modiano

1781

 

Eastern Market Indicators (AUD cents/kg clean)

1778 cents ê 52 cents compared with 02/03/2018

Northern Market Indicators (AUD cents/kg clean)

1869 cents ê 31 cents compared with 02/03/2018

 

AUD/USD Currency Exchange

0.7832 é 0.102 compared with 02/03/2018


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