Weekly Market Reports


27 October 2017

Friday, October 27, 2017

WEEKLY MARKET REPORT

Week Ending 27th October, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S17/17

This Week

M17/17

Last Sale

S16/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2377

2273n

2338

+39

1669

+708

18

2201

2153

2161

+40

1641

+560

19

1920

1892

1885

+35

1573

+347

20

1668

1653

1657

+11

1468

+200

21

1560

1556

1553

+7

1415n

+145

22

1483n

1491n

1476n

+7

1388n

+95

26

1014

1014

1043

-29

1084n (M)

-70 (M)

28

707

705

726

-19

735

-28

30

515

518n

521

-6

594

-79

MC

1233n

1239n

1206

+27

1128n

+105

 BILLION DOLLAR WOOL CLIP ALREADY!

After a shaky start the market consolidated late in the sale to see the AWEX EMI post a 10 cent gain for the series to 1578.  The impetus for the rising market was the favourable shift in the FRX, 76.85 on Wednesday night, 2% fall - from a high of 78.50 cents last Thursday. This saw the EMI in $US terms actually lose ground to 1218, a discount of 13 cents. The market looked as though it was split in two as the sale opened, finer than 19 micron on the increase and broader types cheaper, but the 2nd day of selling saw renewed buying activity to have < 19.5 20 to 45 cents to the good with 20s and broader 10 cents better as all types, regardless of VM, colour and (to an extent) mid-breaks benefitted.
Skirtings continued on their merry way as the superior style types with < 5% VM were up to 50 cents higher with most lots 20 dearer. Growers warmed to these new higher levels as just 8 bales were passed-in from 2038 offered!! Cardings also are at lofty heights with the 3 regional MCIs now averaging 1236 cents after all types gained 20/30 cents. Again, growers liked the increased prices as only 9 bales failed to find a new home from 1273! These levels now equal with any peak over the past 5 years. Crossbreds continue to frustrate growers as the finer microns, 25 to 28s, fell another 20 to 30 cents as the broader types were in buyers’ favour as high volumes outside Australia still hinder this sector.  
A milestone week as the value of wool sold so far this season broke through the $billion mark ($1,004.66m). This equates to $1792/bale for every bale. This is the earliest point of the season since 2002 that this has happened. For the same sale last year the value was only $800 million (26% lower) with the volume of wool sold only 12% down on this season.

Ram sales are just about wound up in this area as the focus moves to the south of NSW. A few results are; Glenwood at Wellington topped at $5600 to average $1855 to clear 92%; Grogansworth at Bowning achieved a clearance rate of 98% with a top price of $4750 and an average of $2075, up by a healthy $360 from last year. Next sale has 47,000 bales rostered in the 3 centres with the market to continue in the same vein, good for Merino and tough for Crossbreds.

Ag Concepts Fwd Prices at 27 October 2017

Micron

Date

Low

High

21

28-Feb-18

1530

1530

21

28-Mar-18

1520

1520

Main Buyers (this week)

1

Tianyu Wool

4432

2

Fox & Lillie

4226

3

Techwool

3618

4

Australian Merino

3456

5

Lempriere

2771

6

Seatech Ind.

2682

Eastern Market Indicators (AUD cents/kg clean)

1578 cents é 10 cents compared with 20/10/2017

Northern Market Indicators (AUD cents/kg clean)

1673 cents é 16 cents compared with 20/10/2017

AUD/USD Currency Exchange

0.7717 ê 0.0135  compared with 20/10/2017

20 October 2017

Friday, October 20, 2017

WEEKLY MARKET REPORT

Week Ending 20th October, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S16/17

This Week

M16/17

Last Sale

S15/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2338

2284n

2301

+37

1661

+677

18

2161

2144

2156

+5

1650

+511

19

1885

1888

1886

-1

1572

+313

20

1657

1645

1681n

-24

1466

+191

21

1553

1550

1589n

-36

1414

+139

22

1476n

1481

-

-21 (M)

1382 (M)

+94

26

1043

1049n

1053

-10

1065n

-22

28

726

741

753

-27

746

-20

30

521

514

526

-5

609

-88

MC

1206

1209n

1188n

+18

1099n

+107

AT LONG LAST – SOME MORE RAIN!!

The market barely moved this sale as the AWEX EMI could only manage a 2 cent rise to 1568 and in $US terms was also marginally better, up by 7 cents to 1231. This equates to an average lift of 223 cents (19%) on the same week last year. The appreciation in the FRX by over 1.75 cents at one stage and the lift in volume by 7690 bales (20%) did little to deter buyers, especially those chasing the superior superfine types on offer in Sydney. By week’s end 17.5 to 19 gained up to 15 cents while finer types < 17 micron were better by 35/45 cents with lots bought by Italian mills commanding up to 200 cent premiums. The broader microns > 19.5 couldn’t keep pace with their more fancied finer types to lose 20 to 40 cents.
Skirtings also looked to keep up with their fleece counterparts as the stylish selection < 19 micron and below 5% VM posted 20 to 30 cent gains while all other types remained solid. Cardings continued on their merry way as the 3 centres averaged a 26 cent lift with all MCIs now above 1200 cents. LKS were the standout of this sector (up by 40/60 cents) while CRT/STN added 15 to 25 cents. Crossbreds are still out of favour as losses ranged from 10 to 30 cents.
Of great interest next Tuesday will be the AWI hierarchy having to front Senate estimates for the third time in 12 months. The media attention on the Chairman has been relentless, no doubt to gain the interest of the politicians. It will be interesting to see what they uncover.
Meanwhile voting papers for the AGM elections will be sent out via post and email next Monday with voting to commence immediately. I have sent out over 4000 letters to AWI shareholders this week and am receiving plenty of positive feedback. I urge you to take an interest in this election and cast your votes and not give your proxy to the Chairman, not because I have an issue with him personally, but I do not agree with the use of proxies given to a Chairman to have the final say on who sits on the Board. I believe this should remain independent and the shareholders have the final say. I appreciate any support you can offer.

Next week 43,500 bales will be offered nationally with Macwool to sell on Thursday. 

Ag Concepts Fwd Prices at 20 October 2017

Micron

Date

Low

High

21

15-Nov-17

1540

1540

21

17-Jan-18

1535

1535

21

13-Jun-18

1500

1500

 Main Buyers (this week)

1

Fox & Lillie

4974

2

Techwool

4869

3

Tianyu Wool

3917

4

Seatech Ind.

3683

5

Australian Merino

3217

6

Modiano

2873

7

Lempriere

2680

8

PJ Morris

2157

9

Endeavour Wool

1930

Eastern Market Indicators (AUD cents/kg clean)

1568 cents é 2 cents compared with 13/10/2017

Northern Market Indicators (AUD cents/kg clean)

1657 cents é 1 cents compared with 13/10/2017

AUD/USD Currency Exchange

0.7852 é 0.0033  compared with 13/10/2017

13 October 2017

Friday, October 13, 2017


6 October 2017

Friday, October 06, 2017

WEEKLY MARKET REPORT

Week Ending 6th October, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S14/17

This Week

M14/17

Last Sale

S13/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2253

2230n

2238

+15

1442n

+811

18

2112

2103

2072

+40

1429n

+683

19

1844

1831

1791

+53

1314n

+530

20

1654

1661

1597

+57

1248n

+406

21

1571

1569

1532n

+39

1245n

+326

22

1507n

1500n

1477n

+30

1230n

+277

26

1069n

1096n

1093n

-24

1064n

+5

28

788

805

798

-10

854

-66

30

535

551n

558n

-23

809

-274

MC

1163n

1146n

1142

+21

1073n

+90


DOLLAR HELPS KICK START THINGS - RAIN GUAGE STILL EMPTY

After a couple of weeks of flat-lining where the EMI only moved a few cents either way, it was pleasing to see the merino sector spring back to life across all categories. The fall in the dollar of around two cents USD finally had some traction which, when added with increased interest, saw some significant gains across all merino indicators. It was the low VM, low mid-break wools which saw the best of the competition but not limited to these types as buyers fought for quantity among the lesser types. What has become very evident over the past months is grower acceptance to shorter shearing intervals. We are seeing a much greater quantity of 6-9 month shearing, delivering wools in the 60-85mm bracket which the market is looking for. Whilst the discounts for longer wools aren’t always pronounced, the competition on the shorter wools are always more predictable. The skirting market followed similar trends as the fleece sector with rises of 20-50 cents over the two days selling. As usual a limited selection of cardings saw extreme competition in all three centres with some astounding prices for good crutchings and locks.

The crossbred market didn’t follow the same pattern and struggled to maintain levels although, what is apparent is that well prepared crossbred clips (which aren’t that common these days) sold much better than those thrown together.

Some interesting stats released from AWEX this week on comparisons year to date against the last five seasons. The volume of wool sold to date this year is 8% higher than last year and 5% higher than in 2013, yet the average value has increased by$227 a bale (15%) against last year and $542 a bale (44%) from 2013. For fleece wool (18.5 and finer) it has increased by $1000 a bale or 62% to $2600 a bale since 2013. Coarser than 18.5 it has risen to an average of $1957 a bale, an increase of $576 a bale. The only sector to not be at a peak is crossbred which, at an average of $927 a bale, is down $138 from their peak two years ago. The EMI this week at 1550 is exactly 250 cents higher than the same week last year.

Macwool will offer 724 bales next Thursday with another good week expected.  

Ag Concepts Fwd Prices at 6 October 2017

Micron

Date

Low

High

21

8-Nov-17

1560

1560

21

28-Feb-18

1520

1520

21

23-May-18

1500

1500

 

1

Fox & Lillie

4342

2

Techwool

3513

3

Tianyu Wool

2993

4

Seatech Ind.

2755

5

Aust Merino Exp.

2359

6

Modiano

1998

7

Endeavour Wool

1866

8

PJ Morris Wool

1790

9

Michell Aust.

1707

Eastern Market Indicators (AUD cents/kg clean)

1550 cents é 28 cents compared with 29/09/2017

Northern Market Indicators (AUD cents/kg clean)

1629 cents é 30 cents compared with 29/09/2017

AUD/USD Currency Exchange

0.7831 é 0.0010  compared with 29/09/2017