Weekly Market Reports


24 November 2017

Friday, November 24, 2017

WEEKLY MARKET REPORT

Week Ending 24th November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S21/17

This Week

M21/17

Last Sale

S20/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2460

2451n

2494

-34

1742

+718

18

2277

2273

2303

-26

1713

+564

19

1985

1983

2009

-24

1636

+349

20

1758

1747

1783

-25

1515

+243

21

1636

1638

1647

-11

1442

+194

22

1553n

1548

1571n

-18

1412n

+141

26

1055

1044n

1075

-20

967n

+88

28

731

734

768

-37

680

+51

30

559

539n

584

-25

573n

-14

MC

1381n

1393n

1382n

-1

1123n

+158

 A BIG THANK YOU

The dust has settled after last Friday’s AWI AGM and I would like to thank all the wool growers who voted and offered support over the past two months. There was a clear message given by literally thousands of growers and I will be determined over the next four years to repay their trust and ensure AWI continues its good work in the areas it is actively involved in and assist where I can to repair some of the rifts which have appeared over the last couple of years. The most recent election was not without its share of controversy and AWI have promised an investigation as to where some things went wrong, particularly growers who didn’t receive voting papers in time to vote. If you were one of them, please let us know so we can pass it on.

The softer markets on the east coast last Thursday had most pundits wondering if the market had finally peaked. After spending 3 sales in September at around the 1520 cent level the AWEX EMI has shot up to a record high last week of 1689, an increase of 178 cents over a 9 week stint that saw the EMI only record one negative day. It was a nervous start to this sale as Melbourne and Fremantle posted modest gains with Sydney a shade cheaper weighed down by broader microns a touch off and XBs cheaper as was the case in Melbourne, falling considerably. Thursday had the losses extend across all sectors as access to finance became harder and buyers were more and more selective with their purchases. By week’s end all merino fleece microns had lost 20 to 40 cents bar 21s back by 10 cents. As the buyers were looking for lots with the “right specs” these came under pressure and were quoted 30 to 60 cents higher than their indicators, about the only good news in a dull week.

The skirting catalogue escaped the price hiccup of their fleece counterparts virtually unscathed. Most of the selection was < 19 micron and below 4% VM and remained pretty much unchanged for the series with the odd lot in the 17/18 micron range losing support towards the end of the sale. The record breaking carding sector also took a breather from its meteoric rises. Apart from some LKS/CRS in the 18/19 micron range slipping by 10 cents all other types remained rock solid. History was made when we sold a line of LKS from Cargo, near Orange for 1009 cents!! The finer LKS under 19 micron with < 3% VM are now making over 1500 cents clean - just 150 cents from the 21 micron fleece indicator. A lot of CRS from Cooma made 1044 cents (1675 clean) - amazing prices for cardings. When the market started its climb 9 weeks ago 21s were at 1532 and the 19.5 indicator was on 1687. Crossbreds continue to frustrate growers. Just when it looked like a recovery was on the way as most microns (26 to 32) added 80 to 100 cents over a 2 week period in early November, it’s been downhill ever since. The sales losses ranged from 10 to 40 cents on top of last week’s fall but we are still 20 to 50 cents ahead of the levels before the big rises early in November. 

Concepts Fwd Prices at 24 November 2017

Micron

Date

Low

High

21

24-Jan-18

1570

1570

21

21-Mar-18

1550

1550

21

27-Jun-18

1540

1540

 

Main Buyers (this week)

1

Techwool

6739

2

Seatech Ind.

4464

3

Fox & Lillie

4236

4

PJ Morris

2524

5

Australian Merino

2199

6

Modiano

1638

 

Eastern Market Indicators (AUD cents/kg clean)

1669 cents ê 14 cents compared with 17/11/2017

Northern Market Indicators (AUD cents/kg clean)

1756 cents ê 20 cents compared with 17/11/2017

AUD/USD Currency Exchange

0.7611 é 0.0011 compared with 17/11/2017

17 November 2017

Friday, November 17, 2017

WEEKLY MARKET REPORT

Week Ending 17th November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S20/17

This Week

M20/17

Last Sale

S19/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2494

2465

2488

+6

1667

+827

18

2303

2306

2283

+20

1636

+667

19

2009

2005

2005

+4

1570

+439

20

1783

1765

1764

+19

1451

+332

21

1647

1634

1645

+2

1383

+264

22

1571n

1548n

1562n

+9

1368n

+203

26

1075

1065n

1103

-28

985n

+90

28

768

773

815

-47

668

+100

30

584

603

616

-32

560

+24

MC

1382n

1389

1348

+34

1103n

+279

 DON’S IN, MARKET STEADY!

The market took a breather this sale as it looked pretty hard to figure out which way buyers were pushing the market. By week’s end the market had edged a touch higher by 2 cents to 1683. The weaker FRX didn’t seem to help the market but the weaker A$ resulted in the market falling by 13 cents in $US terms to 1279 as the $A moved lower by over 1 cent. The market opened on a slightly dearer note but tailed off somewhat by Thursday to have all merino indicators edging just into positive territory. Some microns did add 15 to 25 cents -16.5s, 17.5 to 18.5 and 19 - while all others progressed by up to 10 cents. The less stylish selection than what had been offered over the past few sales being a factor in price movements. Even with the steadier market growers were happy to take the money as the clearance rate was 99% for the fleece offering in Sydney.

Skirtings also had an up and down sale as a strong opening led to a softer finish to the week. Finer types < 19 micron, below 5% VM ended the sale with their noses in front (up by about 10 cents) while the broader/burrier types held their levels from the past few sales. Growers are still very happy with these incredible levels for skirtings as only 18 bales were passed-in, 99.1% sold. Cardings continued to re-write the record books as the 3 MCIs all rose. Sydney (1382) and Fremantle (1366) added 35 to 45 cents (all types in this sector posted 30 to 50 cents rises) while Melbourne rose by 12 cents to 1389. We had a line of LKS from Condobolin make 822 cents!! If we see even small increases next week the MCIs on the east coast could crack an amazing 1400 cent barrier. It was only 2 years ago that 21s were just 1200 cents while 18 micron and finer ranged from 1400 to just 1460 for 16.5s!! Just when we thought crossbreds were well and truly on the way to recovery, they couldn’t maintain their meteoric rises of the past 2 sales as losses ranged from 10 cents (32 micron) to 50 cents for 28s, these big falls contributing to the small movements in regional indicators. 

A week of consolidation as movements in all microns of merino fleece/skirtings were minimal as cardings kept rocketing away and Crossbreds lost ground. With just over 50,000 bales on offer this sale was the largest since the opening sale after the winter recess (August) with Melbourne selling 56% of the total, its biggest catalogue since January. The turnover this sale topped $96.77m - the highest weekly total since 2002 when 74,500 bales were offered. The easing of the market on the east coast on the final day of selling could be a sign that the peak has been reached (time will tell) but an encouraging factor was the Fremantle market finishing slightly dearer which can be a good pointer for things to come next sale under another big selection of 44,000 bales - we wait with baited breath for the outcome.

Good news to come out of the much anticipated AWI AGM held in Sydney today. Don has succeeded in his bid to be voted onto the board of directors after a month of lobbying eligible voters. His vote count (136,384) was only 2nd to one on the board’s incumbents, Collette Garnsey with a total of 205, 584. The final position that was up for re-election was won by James Morgan with 135,892 with Paul Cocking missing out with 128,608 votes. The new board met immediately after counting and voted Wally Merriman to retain his role as chairman.    

 Concepts Fwd Prices at 17 November 2017

Micron

Date

Low

High

21

24-Apr-18

1560

1560

21

23-May-18

1570

1570

Main Buyers (this week)

1

Techwool

8682

2

Seatech Ind.

5233

3

Tianyu Wool

4238

4

Fox & Lillie

4155

5

Australian Merino

3387

6

PJ Morris

2687

7

Modiano

2458

8

Lempriere

1691

9

Kathaytex Aust.

1675

  

Eastern Market Indicators (AUD cents/kg clean)

1683 cents é 2 cents compared with 10/11/2017

Northern Market Indicators (AUD cents/kg clean)

1776 cents é 9 cents compared with 10/11/2017

AUD/USD Currency Exchange

0.7600 ê 0.0089 compared with 10/11/2017

10 November 2017

Friday, November 10, 2017

WEEKLY MARKET REPORT

Week Ending 10th November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX  

This Week  

S19/17  

This Week  

M19/17  

Last Sale  

S18/17  

Sydney  

Change  

Last Year  

Sydney  

Sydney Yearly  

Change  

17

2488

2449n

2454

+34

1626

+862

18

2283

2318

2246

+37

1610

+673

19

2005

2008

1968

+37

1530

+475

20

1764

1758

1713

+51

1420

+344

21

1645

1636

1608

+37

1366

+279

22

1562n

1560

1511n

+51

1348n

+214

26

1103

1093

1048

+55

996n

+7

28

815

828

728

+87

674

+141

30

616

616

536

+80

555

+61

MC

1348

1377n

1289n

+59

1092

+256

 

WHERE TO NOW?

The market continued on in the same vein this sale to smash last week’s record level the AWEX EMI up by a whopping 58 cents to 1681 - a rise of 103 cents in the past fortnight- as the FRX looked to be locked in the 76.5 to 77 cent range. This steady rate playing into buyers’ hands as the rise in $US terms was 40 cents to 1293. Increases were across the board, 30 to 50 cents with some of the superior super-fine types up to 150 cents higher. Just 13 bales of fleece were passed-in in Sydney clearing 99.8% (6632) bales as all micron ranges from 16 to 22 are at 5 year highs.

Skirtings kept up with the rises in the fleece room as the burrier/broader types (> 19 micron, > 5%VM) took the limelight with gains of 40 to 60 cents while the finer, lower VM lots could only muster 20 cent increases. It seems that the sky’s the limit for the carding sector as the 3 centres averaged 63 cent gains as the MCI’s range from 1323 to 1377 - all types posted 50 to 60 cent jumps with some LMS up to 100 cents dearer as just 7 bales failed to find a new home selling 99.4%. The MCI has jumped 259 cents (1089 to 1348) since early September. At long last the XB sector was the standout performer giving long suffering growers some much needed good news. Finer microns < 26 were 50 cents higher while > 28s posted 80/90 cent gains 20% for some microns).    

A remarkable market as buyers scrambled to secure volume. The 42,745 bales sold across the country this week grossed $84m or $1965/bale, quite incredible with 98.7% sold. As the market rose rapidly some buyers “slammed the bag” and adapted a wait and see approach and left it up to the “gang of four” to set these new levels buying 60% of the fleece selection and 70% of XBs. Techwool, our largest buyer, topped the list for FLC, SKTs and XBs only to be outdone by Michell in carding sector.

Not only are we asking where will the market pull up, but who will make up the new Board of AWI after next Friday’s AGM.

Don has received much support from within our client base and is very grateful for the confidence shown. Voting closes next Wednesday, so mailed votes really needed to be in the post today. Online voting will close 5pm Wednesday. You have to appoint a proxy holder otherwise your vote will be invalid. All results will be in next week’s report.

Macwool will offer 606 bales next Wednesday.

Ag Concepts Fwd Prices at 10 November 2017

Micron

Date

Low

High

Micron

Date

Low

High

21

13-Dec-17

1650

1650

21

30-May-18

1545

1545

21

14-Feb-18

1605

1605

21

11-Jul-18

1500

1520

Main Buyers (this week)

1   

Techwool

7433

2   

Modiano

3879

3   

Seatech Ind.  

3819

4   

Fox & Lillie

3749

5   

Tianyu Wool

2949

6   

PJ Morris  

2900

7   

Australian Merino

2842

8   

Michell Aust.

2214

9   

Kathaytex Aust.  

1486

  

Eastern Market Indicators (AUD cents/kg clean)

1681 cents é 58 cents compared with 3/11/2017

Northern Market Indicators (AUD cents/kg clean)

1767 cents é 49 cents compared with 3/11/2017

AUD/USD Currency Exchange

0.7689 ó 0.0028 compared with 3/11/2017

3 November 2017

Friday, November 03, 2017

WEEKLY MARKET REPORT

Week Ending 3rd November, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S18/17

This Week

M18/17

Last Sale

S17/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2454

2354n

2377

+77

1643

+811

18

2246

2207

2201

+45

1622

+624

19

1968

1947

1920

+48

1545

+423

20

1713

1710

1668

+45

1439

+274

21

1608

1600

1560

+48

1378

+230

22

1511n

1503

1483n

+28

1352n

+159

26

1048

1048n

1014

+34

1008n

+40

28

728

741

707

+21

706

+22

30

536

531

515

+21

565

-29

MC

1289n

1311n

1233n

+56

1120n

+169

 

AWI VOTING OPEN, RECORDS BROKEN – EVEN XBs DEARER!!

The market marched on this week as several records were broken. The AWEX EMI jumped by 45 cents to 1623 - 25% above the level the same sale 12 months ago. This now an all time high beating the August peak of 1614c and the old AWC indicator in April 1988 of 1584 cents. The rise was 35 cents in US$ terms to 1252 as the FRX floated between 77.2 and 76.5 cents. The rises were across all microns and types (30 to 75 cent gains with some superior types over 130 cents better) as buyers warmed up for next week’s designated super-fine sale. The 19.5 MPG is at an all time high (1850) since its introduction to market reports in 2001 as 20 to 23s close in on record levels.

Skirtings sold to excellent competitive tension as 19 micron and finer < 3% VM shot up by 80/100 cents while broader, burrier types with 5 to 10% VM looked 50 cents dearer as just 15 bales were passed-in. Cardings created new records as the 3 centres added significant gains to their MCIs. All types in this sector jumped by 40 to 100 cents to have the MCI at 1289 in Sydney as every bale on offer was snapped up. Crossbreds were also caught up in the buying frenzy to snap an 11 week falling run as rises were 20 to 35 cents for 25 to 30 microns - a very welcome rise. The total bales sold this sale nationally were 45,193 that grossed $87.18m which equates to $1929/bale. It was way back in 1996 that a single week’s sold wool came to a similar value but the total bales sold were 140,000 - $622/bale!! This works out to a 310% rise in the market.

Still plenty of news around regarding AWI and the impending elections for positions on the board on November 17th. Growers who are eligible to vote should have received their “how to vote” papers. There has been plenty of argy-bargy amongst certain individuals in the rural press and this could be the most important elections in AWI’s history. In the last election in 2013 just 18.6% (204,488) of the 1.1m eligible votes were cast and a total of 98.8% (202,211) were proxy votes, ie left to the chairman as to whom the vote was to be directed. It is imperative that every grower cast their own vote and not have someone else decide who sits on the board. We all know this situation would never happen in any level of politics so why would we tolerate it at AWI!!

Ag Concepts Fwd Prices at 3 November 2017

Micron

Date

Low

High

21

17-Jan-18

1575

1575

21

28-Mar-18

1530

1530

21

11-Jul-18

1470

1470

Main Buyers (this week)

Techwool

4963  

Fox & Lillie

4530  

Modiano

4395  

Tianyu Wool

3851  

Australian Merino

3424  

Seatech Ind.

3217  

Michell Aust.

2971  

Lempriere

2351  

PJ Morris

2234  

  

Eastern Market Indicators (AUD cents/kg clean)

1623 cents é 45 cents compared with 27/10/2017

Northern Market Indicators (AUD cents/kg clean)

1718 cents é 45 cents compared with 27/10/2017

AUD/USD Currency Exchange

0.7717 ó 0.0000  compared with 27/10/2017