WEEKLY MARKET REPORT
Week Ending 16th December, 2016
AWEX Northern Micron Indices Comparison
AWEX INDEX |
This Week S24/16 |
This Week M24/16 |
Last Sale S23/16 |
Sydney Change |
Last Year Sydney |
Sydney Yearly Change |
17 |
1788 |
1753n |
1767 |
+21 |
1530 |
+258 |
18 |
1732 |
1714 |
1717 |
+15 |
1508 |
+224 |
19 |
1624 |
1620 |
1608 |
+16 |
1430 |
+194 |
20 |
1496 |
1485 |
1481 |
+15 |
1359 |
+137 |
21 |
1415 |
1410 |
1401 |
+14 |
1350 |
+65 |
22 |
1381n |
1374n |
1367n |
+14 |
1338n |
+43 |
26 |
939 |
950n |
954n |
-15 |
1000n |
-61 |
28 |
658 |
666 |
681 |
-23 |
844 |
-186 |
30 |
598 |
605n |
600 |
-2 |
797 |
-199 |
MC |
1132n |
1134 |
1139n |
-7 |
1117 |
+15 |
A SOLID FINISH. MERRY CHRISTMAS & A HAPPY NEW YEAR!!
More than 55,000 bales were offered this week - the largest national total since January and the final sale of the 2016 calendar year. Unlike in recent weeks where the market has been subject to large price increases or corrections, Wk 24 saw a gradual increase in prices across all centres on all selling days, although most price increases were experienced during Wednesday’s selling. After steady price rises throughout the sale all merino sectors generally finished the week 10 to 20 cents above levels recorded in the previous sale. A pleasing aspect were the culprits (off style, lower types) that dragged the market back last sale which were in higher demand than their more fancied counterparts, dearer by 40 cents.
The skirting market performed better than the fleece in Sydney and Fremantle (on average 20 cents dearer for the week) while Melbourne was firm unchanged compared to the previous week. It was the largest offering of Crossbreds in 2 years and 34% larger than last week. Prices drifted lower and poorly prepared lots, in particular, were neglected then increasingly discounted as the sale progressed. Prices were generally discounted between 5 and 20 cents with the coarser end least affected. The oddment market was one of small mixed movements. Small price rises and increases saw an average decrease of 5 cents in the Eastern Merino Carding Indicators and a 2 cent increase in the Western Region, all 3 centres MCIs now within 4 cents of each other - 1131 to 1134.
A good finish to the year considering the increased volume over the past 4 sales contributing to a 55,000 bale increase in wool offered to date YOY. The continued good demand for merino combing wool and the favourable exchange rate helped the merino sector finish on a good note. The same can’t be said for crossbreds. They lurch from bad to worse with several broad burry types virtually neglected. Any sign of improvement seems a long way off.
The EMI finished the 2016 calendar year 90 cents higher (+7.1% YOY) at 1355 cents - the highest ‘calendar year’ closing figure on record. Turnover for 2016 was just over 2.5 billion dollars (AUD) - the largest amount since 2002 (2.9 billion during that year when volume was 62% higher). Average dollars per bale in 2016 (excl. NZ) was $1478, the highest on the AWEX database (since ’97).
Sales resume on the week beginning the 9th January, 2017, with selling in Sydney, Melbourne and Fremantle with an expected catalogue of 55,000 bales. Merry Christmas and a safe and Happy New Year to all our clients!
Ag Concepts Fwd Prices at 16 December 2016
Micron |
Date |
Low |
High |
21 |
25-Jan-17 |
1400 |
1400 |
21 |
15-Feb-17 |
1410 |
1410 |
19 |
12-Apr-17 |
1575 |
1575 |
Main Buyers (This Week)
1 |
Techwool |
9639 |
2 |
Fox & Lillie |
4449 |
3 |
Tianyu |
4234 |
4 |
Modiano |
3169 |
5 |
PJ Morris |
3130 |
6 |
Kathaytex (VIC) |
2903 |
7 |
Lempriere (Aust) |
2779 |
8 |
Aust. Merino Exp |
2762 |
9 |
Michell Aust |
2653 |
Eastern Market Indicators (AUD cents/kg clean) 1355 cents é 6 cents compared with 9/12/2016 |
Northern Market Indicators (AUD cents/kg clean) 1412 cents é 9 cents compared with 9/12/2016 |
AUD/USD Currency Exchange 0.7422 ê 0.0080 compared with 9/12/2016 |