Weekly Market Reports


15 December

Friday, December 15, 2017

WEEKLY MARKET REPORT

Week Ending 15th December, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX  

This Week     

S24/17     

This Week     

M24/17     

Last Sale     

S23/17     

Sydney     

Change     

Last Year     

Sydney      

Sydney Yearly  

Change   

17     

2538

2520n

2477

+61

1530

+1008

18     

2300

2308

2273

+27

1508

+792

19     

2086

2092

2015

+71

1430

+656

20     

1883

1890

1794

+89

1359

+524

21     

1745

1740

1669

+76

1350

+395

22     

1642n

1633

1581n

+61

1338n

+304

26     

1115

1126

1064

+51

1000n

+115

28     

785

803

772

+13

844

-59

30     

590

600

571

+19

797

-207

MC     

1470

1498n

1433

+37

1117

+353

 

GREAT YEAR ENDS ON A MASSIVE HIGH!

We were left wondering how AWEX couldn’t find just one more cent for the EMI to create history and crack the 1700 cent mark last week. Well we didn’t have to wait too long as Melbourne’s market on Tuesday did the trick, up by 14 cents to 1713 in a precursor to the rest of the final sale of the year. The market exploded into action on Wednesday as the EMI added a whopping 52 cents to 1765 - an all time record as 18.5 to 20 micron in Sydney posted gains of 100 to 116 cents. This was to be the peak of the market as Thursday’s prices couldn’t be maintained due to the sudden fall in the US$ and appreciation of all major currencies as the US Federal Bank lifted interest rates for the 3rd time this year on Wednesday night as buyers used the FRX to their advantage on Thursday to soften the market. As the table above shows, the gains across all microns was significant - 17s now an incredible 1008 cents higher than 12 months ago.

The buying frenzy wasn’t only restricted to the fleece room as price gains ranged from 60 to 90 cents for all types of skirtings regardless of micron, style or VM.  A Line of PCS from Cunnamulla - 18.8mic, 6% VM - made 1087 cents as just 19 bales (1%) failed to sell. The records continue to tumble for the carding sector as the 3 centres averaged a 47 cent jump to sit at 1470 to 1498. Melbourne and Fremantle did break through the 1500 cent mark on Wednesday but came off the boil in the final session. It was almost a total clearance for oddments, 8 bales passed-in clearing 99.5% of this sector, 353 cents to the good compared to this time last year. Crossbreds also added to their previous values, finer microns (25/26s) up by 40 to 50 cents while 28 to 30 micron gained 15 to 20 cents as broader types were in buyers’ favour.

A great sale for the lucky growers who sold wool as the bidding was “frenzied” from the outset for all types as the impending 3 week recess and intense demand forced some to buy “regardless of price”.  All MPGs for 16.5 to 22 micron were at record levels on Wednesday since AWEX began in 1995. For the calendar year the EMI has climbed a whopping 405 cents (30%) the biggest yearly rise since 2002, the 3rd year-on-year rise totaling 700 cents. The value of wool sold (Jan to Dec) topped the $3 billion mark for the 1st time since AWEX records began 22 years ago. We now enter a 3 week recess with wool sales to recommence on 9th January.

Ag Concepts Fwd Prices at 15 December 2017

Micron

Date

Low

High

21

28-Mar-18

1680

1680

21

9-May-18

1630

1630

21

27-Jun-18

1573

1650

21

13-Feb-19

1500

1500

Main Buyers (this week)

Fox & Lillie

7076   

Techwool

6969   

Australian Merino

3910   

Endeavour Wool

3752   

PJ Morris

3169   

Kathaytex (Vic)

2782   

Michell Aust.

2614   

  8   

Seatech Ind.

2342   

Kathaytex (Aust)

2274   

Eastern Market Indicators (AUD cents/kg clean)

1760 cents é 61 cents compared with 08/12/2017

Northern Market Indicators (AUD cents/kg clean)

1841 cents é 59 cents compared with 08/12/2017

AUD/USD Currency Exchange

0.7670 é 0.0120 compared with 08/12/2017

8 December 2017

Friday, December 08, 2017

WEEKLY MARKET REPORT

Week Ending 8th December, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX    

This Week    

S23/17    

This Week    

M23/17    

Last Sale    

S22/17    

Sydney    

Change    

Last Year    

Sydney     

Sydney Yearly  

Change     

17     

2477

2471

2459

+18

1767

+710

18     

2273

2267

2270

+3

1717

+556

19     

2015

2023

1999

+16

1608

+407

20     

1794

1803

1773

+21

1481

+313

21     

1669

1658

1649

+20

1401

+268

22     

1581n

1564

1569n

+12

1367n

+214

26     

1064

1098

1035

+29

954n

+110

28     

772

771

718

+54

681

+91

30     

571

594

534

+37

600

-29

MC     

1433

1454

1382n

+51

1139n

+294

 

THE EMI TEETERS ON THE EDGE OF 1700 CENTS!

After a steady start to the week the wool market fired up again late Wednesday and Thursday to surge towards an EMI of 1700 cents rising 23 cents for the week. It pulled up one cent short at 1699.

The big improvers for the week were the crossbred types which saw buyers panicking to fill orders as the Christmas recess looms and available days for shipment diminish. All types were hotly contested as buyers (operating principally for China) scrambled to buy anything that resembled wool! Sale of the day for us was a line of bellies containing over 30% burr selling for 1340 cents clean (469 cents greasy) whilst there was disappointment for the writer as his crutchings couldn’t quite manage 1000 cents greasy! The overall picture was aided by a dollar that was slightly cheaper in $US terms, hence also in Chinese Renminbi as well. This softened the blow with the rise in US dollar conversion only being 11 cents overall. Total wool sales this week grossed just over $90 million for an across the board average of $1895 per bale.

For the first four months of the season the volume of wool exports was up by 10% against last year to 106.7 mkg which was the largest volume exported in 8 years. The value of those exports totaled $1107 million - an increase of 26% over last season and the highest value for the period since 2002/03 when there was almost 50% more wool. For the same period other fibre prices have also lifted globally, particularly in China. Polyester in China has risen by 12% in the past four months and acrylic has risen by 20%. In US$ terms the EMI has risen 5% for the same period so it seems that there is no reason to be nervous about wool outpricing itself although the price relativity for superfine against synthetics is quite high.

Other data also just released was the latest breakup of National Wool Declaration (NWD) information to the end of November. Of all wool offered 65% carried the NWD with non-mulesed at 10.4%, pain relief 31.9% and ceased mulesed 2.8%. Year on year non-mulesed wool increased by 3% and PR increased by 8%.  It would be good to see a higher declaration rate than 65% but it has increased about 15% over the past two seasons so now could be considered as critical mass.

The big question for the short term is, “Will this strength continue to the final whistle next Thursday?”. There is a large offering of 52,000 bales up next week and buyers wishing to ship prior to Christmas will have to have quick payment and quick delivery through dumps to port to achieve it otherwise it will be early January before things get moving again. Macwool will be selling on the first day in Sydney next Wednesday with reasonable expectations of a good sale.

Ag Concepts Fwd Prices at 8 December 2017

Micron

Date

Low

High

21

28-Mar-18

1625

1625

21

9-May-18

1595

1595

21

27-Jun-18

1569

1569

Main Buyers (this week)

1  

Techwool   

7800   

2   

Fox & Lillie  

5820  

3   

Australian Merino 

4467  

4  

Endeavour Wool   

3085   

5   

Michell Aust.  

2844 

6   

Tianyu Wool  

2546  

7  

PJ Morris   

2098   

8   

Seatech Ind.  

1895  

9   

Modiano 

1703  

Eastern Market Indicators (AUD cents/kg clean)

1699 cents é 23 cents compared with 01/12/2017

Northern Market Indicators (AUD cents/kg clean)

1782 cents é 26 cents compared with 01/12/2017

AUD/USD Currency Exchange

0.7550 ê 0.0035 compared with 01/12/2017

1 December 2017

Friday, December 01, 2017

WEEKLY MARKET REPORT

Week Ending 1st December, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX   

This Week   

S22/17   

This Week  

M22/17   

Last Sale 

S21/17 

Sydney 

Change 

Last Year 

Sydney 

Sydney Yearly 

Change 

17    

2459  

2467n  

2460  

-1  

1797  

+662  

18    

2270  

2291  

2277  

-7  

1753  

+517  

19    

1999  

2009  

1985  

+14  

1653  

+346  

20    

1773  

1770  

1758  

+15  

1527  

+246  

21    

1649  

1644  

1636  

+13  

1449  

+200  

22    

1569n  

1561  

1553n  

+16  

1411n  

+158  

26    

1035  

1051  

1055  

-20  

962  

+73  

28    

718  

734  

731  

-13  

681  

+37  

30    

534  

536  

559  

-25  

578  

-44  

MC    

1382n  

1389n  

1381n  

+1  

1144n  

+238  

 

MARKET SET FOR A GOOD RUN HOME TO CHRISTMAS!

The market clawed back some of the previous series’ losses as buyers looked to have overcome their finance problems that restricted some of them operating to full capacity over the past fortnight. The benchmark AWEX EMI added 7 cents to its value (1676), 298 cents higher than the same time 12 months ago, an increase of 21%. The gain in US$ terms was the barest minimum, just 1 cent to 1271, as the A$ spent most of the sale just shy of the 76 cent mark. Some degree of urgency came back into the sale rooms this week as buying patterns intensified under renewed interest but bidding was measured as price increases were gradual. This was the final “designated superfine sale” of the year, but this didn’t benefit all microns. 17 to 18s failed to fire to slip by up to 5 cents (volume related) as 16.5 jumped by 35 cents. All other microns from 18.5 to 22 put on an average of 15 cents. Most types met with good competition regardless of VM, colour or other faults as the “right spec” lots were up to 30 cents higher than their indicators.

The skirting buyers also took a much more cautious approach but overall the market remained pretty much unchanged, bar some 17 micron and broader types just in buyers’ favour. The carding market also followed suit as the only movements in this sector were LKS < 17 micron that added 10 cents and washing LMS (< 0.3 VM) quoted as extreme. Once again XBs failed to fire or even hold the previous sales’ levels as all microns (25 to 32s) gave up another 10 to 25 cents.

Most of the show-floor talk still revolved around finances. The recent larger weekly offerings and higher prices had most buyers stretched to the limit but the pressure valve should be alleviated as we march towards the 3 week recess as November shipments are due and L/Cs (letters of credit) are opened allowing buyers to regain full budget limits for purchasing for the final 2 sales of the year. Demand for prompt shipment and the need of most mills to buy wool pre-Christmas to keep production going over the recess and into the new year should ensure, at the very least, a solid market. Competition was more evenly spread this sale as the top 3/4 buyers slowed their purchasing patterns allowing other buyers  to fill the void.

The latest testing figures from AWTA shows November was down 2.3% compared to the same month last year but July to November this year had 5% more bales tested than last season. We sell late on Thursday with 700 bales on offer; this could be the high point of the sale!! Hope everyone gets the much anticipated rain.

Ag Concepts Fwd Prices at 1 December 2017

Micron

Date

Low

High

21

21-Feb-18

1610

1610

21

11-Apr-18

1590

1590

21

27-Jun-18

1550

1550

Main Buyers (this week)

1  

Techwool

6903  

2

Tianyu Wool

3793  

3

Seatech Ind.

3267  

4  

PJ Morris

3009  

5

Lempriere

2834  

6

Modiano

2494  

7  

Michell Aust.

2277  

8

Fox & Lillie

1783  

9

Australian Merino

1673  

Eastern Market Indicators (AUD cents/kg clean)

1676 cents é 7 cents compared with 24/11/2017

Northern Market Indicators (AUD cents/kg clean)

1756 cents ó 0 cents compared with 24/11/2017

AUD/USD Currency Exchange

0.7585 ê 0.0026 compared with 24/11/2017