Weekly Market Reports


24 February 2017

Friday, February 24, 2017

WEEKLY MARKET REPORT

Week Ending 24th February, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S34/16

This Week

M34/16

Last Sale

S33/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2093

2057n

2089

+4

1578

+515

18

2017

1978

2008

+9

1540

+477

19

1806

1784

1789

+17

1443

+363

20

1562n

1548

1541

+21

1406

+156

21

1442n

1437n

1436

+6

1402

+40

22

-

1376n

1376n

+2 (M)

1390 (M)

-14 (M)

26

933n

943n

928

+5

976

-43

28

704

714

685

+19

838

-134

30

546n

543

543

+3

730

-184

MC

1190

1190

1175n

+15

1107

+83

things are looking up!

Another good week for the wool market as the EMI consolidated its position in record territory - a 9 cents rise to 1449. The lift in $US terms more sedate - just a 3 cent shift to 1115 as the $AU spent most of the week hovering either side of 77 cents. The pleasing aspect for fleece types was the recovery in the medium microns, 19 to 22 microns were better by 5 to 20 cents erasing last sale’s losses. The finer microns took a bit of a breather as gains were in the 5 to 10 cent range, similar to last sale. Buyers looked to be warming up for the final super-fine designated sale of the season next week as finer lots <19micron with the right specs this week commanded premiums of 40 to 170 cents as a few “cracking” lots from Caloola via Bathurst, Yass and Jerangle via Cooma in our catalogue testify.

Skirtings had a pretty sedate sale as all types and descriptions across all VM ranges were rock solid. Again buyers were picking the eyes out them as the better spec types in the 16/17 micron range looked up to 10 cents higher (probably a guide as to what might happen with the better types next week). Cardings continued on their merry way as the 3 centres averaged 16 cent gains as all types in this sector quoted up to 30 cents higher. The 2 Eastern Seaboard centres carding indicators are at 1190 while Fremantle is 1208. It wasn’t that long ago the EMI was at that level!! Crossbreds again improved as 25/26 and 30 micron finished up to 5 cents dearer while 28 and 32s 10 to 20 higher. Let’s hope this is the start of a swift recovery for the XB sector.

Incredible is the only way to describe the response to our email and Facebook post on agistment for the victims of the Sir Ivan bushfire. As of today our Facebook post had reached 39550 people and has been shared 463 times. There have been many people contact us and stock agent Chris Callow with offers of help and, at this stage, we believe most people have themselves sorted as to the needs of their stock. What they (and most of us) now need is some good steady rain to begin the recovery.

There has been plenty of industry discussion of late about relocating wool sales from Yennora to Goulburn. A group of interested property developers egged on by local politicians have put proposals to all interested parties including ourselves. At this stage it seems unlikely to proceed as it appears a new lease at Yennora for the next five years will be signed by the major players hence sealing the fate the Goulburn proposal.

Next week a smaller offering of 42,000 bales will be offered in three centres.

Ag Concepts Fwd Prices at 24 February 2017

Micron

Date

Low

High

21

26-Apr-17

1650

1650

19

8-Nov-17

1630

1630

19

11-Jul-18

1595

1625

 

Main Buyers (This Week) 

 

1

Techwool

6680

2

Fox & Lillie

4900

3

Lempriere

2988

4

Tianyu Wool

2949

5

PJ Morris

2520

6

Michell Aust.

2425

7

Aust Merino Exp.

2064

8

Modiano

1662

9

Chinatex

1530

  

Eastern Market Indicators (AUD cents/kg clean)

1449 cents é 9 cents compared with 17/02//2017

Northern Market Indicators (AUD cents/kg clean)

1530 cents é 9 cents compared with 17/02/2017

AUD/USD Currency Exchange

0.7692 ê 0.0027  compared with 17/02/2017

17 February 2017

Friday, February 17, 2017

WEEKLY MARKET REPORT

Week Ending 17th February, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S33/16

This Week

M33/16

Last Sale

S32/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2089

2057

2080

+9

1569

+520

18

2008

1967

2002

+6

1531

+477

19

1789

1767

1795

-6

1454

+335

20

1541

1543

1562

-21

1406

+135

21

1436

1439n

1449

-13

1401

+35

22

1376n

1374n

1398n

-22

1386n

-10

26

928

914n

909

+19

972n

-44

28

685

685

667

+18

831

-146

30

543

534

531n

+12

743

-200

MC

1175n

1171

1162

+13

1094

+81

not a great week but we survived!

We were hoping for a solid market and that’s what was delivered. Just a 3 cent rise for the EMI (1440) to eclipse the record set in January. In $US terms a more pronounced 16 cent lift saw it break through the 1100 cent barrier to 1112 - a good result considering the exchange rate lifted by a full cent from last sale. The market virtually moved in 3 directions: higher to start proceedings with a stylish Launceston offering, only to lose these gains on Wednesday before a closing day rally. By week’s end 18 and finer gained 5 to 15 cents, 18.5/19s were in sellers’ favour and 19.5 to 23s lost 10 to 25 cents.

Skirtings opened the sale on a cheaper note, shorter types 10/20 off the pace only to see a final day recovery as 5% to 8% VM lots claw back the 10 to 20 cent losses from the opening day. Cardings had a good sale as the 3 centres averaged an 11 cent rise in their MCI (1171 to 1193), now at all time highs. The most pleasing aspect of the market was the under pressure XB sector. For the first time in nearly 6 months all microns (25 to 32s) posted gains in the order of 10 to 20 cents.

As many of you would be aware it was a tough week to the east of us with the bushfires in the Dunedoo/Coolah/Cassilis area. Something like 54,000 hectares burnt, stock losses, houses, sheds and countless kilometres of fencing. Hot on the heels of the Wellington fire just after New Year it reminds us how close these disasters can be during seasons like this. We have had many clients affected in both these recent events and from both fires we hear lots of stories about the spirit of the communities that chimes in and pulls those in dire need through. Some of the stories coming through from the latest fire are both amazing and inspirational. Amazing that more stock and buildings weren’t lost and inspirational how individuals rose to the occasion and just dug in to get the job done. Several of our long standing clients were both severely affected or on the edge and in the thick of fighting the fire. Our thoughts go to those affected this week and our praise goes to the teams on the ground that achieved so much. Again, if anyone has any agistment available please come forward as there are a lot of stock that need moving to pastures in a hurry. The several offers that have come forward so far have been very generous.

Next week we hope to be just reporting on the wool market where 47,000 bales are to be offered nationally.

 Ag Concepts Fwd Prices at 17 February 2017

Micron

Date

Low

High

19

12-Apr-17

1720

1720

21

14-Jun-17

1400

1400

21

13-Dec-17

1350

1350

 

Main Buyers (This Week) 

 

1

Techwool

7053

2

Fox & Lillie

5043

3

Aust Merino Exp.

3137

4

Tianyu Wool

2736

5

PJ Morris

2684

6

Lempriere

2656

7

Chinatex

2270

8

Modiano

1893

9

Michell Aust.

1830

Eastern Market Indicators (AUD cents/kg clean)

1440 cents é 3 cents compared with 10/02//2017

Northern Market Indicators (AUD cents/kg clean)

1521 cents é 3 cents compared with 10/02/2017

AUD/USD Currency Exchange

0.7719 é 0.0094  compared with 10/02/2017

10 February 2017

Friday, February 10, 2017

WEEKLY MARKET REPORT

Week Ending 10th February, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S32/16

This Week

M32/16

Last Sale

S31/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2080

2040

2038

+42

1553

+527

18

2002

1937

1971

+31

1512

+490

19

1795

1771

1752

+43

1412

+383

20

1562

1556

1549

+13

1373

+189

21

1449

1439

1438

+11

1368

+81

22

1398n

1375n

1377n

+21

1359

+39

26

909

915

903

+6

962

-53

28

667

666

655

+12

826

-159

30

531n

528

544

-13

746

-215

MC

1162

1162

1158n

+4

1106

+56

MARKET KEEPS ON KEEPING ON!

Last sale’s consolidation was followed up by an even more pronounced rise in the benchmark AWEX EMI posting a 15 cent rise to 1437; just 2 cents shy of the record set in the 2nd sale of the year. In $US terms the gain was 9 cents to 1096, outdoing their record by 11 cents set 3 weeks ago. The only type to finish in the red was 30/32 microns - back by 5 to 15 cents.  Buyers looked keen to secure wool from the outset as the final designated super-fine sale of the season saw a large volume of superior types offered in Sydney. Consistent rises over both days (led by European and Italian indent  orders) had 19s and finer 30 to 50 cents higher with some “crackers” 100 to 150 better than previous sales and ultra-fine microns <16 a massive 200 to 500 cents above the market. Medium microns also came under renewed buyer pressure as 19.5 to 23s added 10 to 25 cents to their values. Growers warmed to these new price levels, clearing over 98%.

Skirtings followed the lead of the fleece room: the sub 18 micron, <5% VM better types keenly sought after as rises of 40 to 60 cents were common with some finer lots <17 micron up to 100 cents higher with the burrier, broader types 10 to 25 cents to the good. Again the sell rate was over 98%. Cardings also had a good sale as all types in this sector were solid to 20 cents higher as the records set 3 weeks ago will come under threat next week. At long last some XB types finally had a positive sale, 24 to 28 micron up 5 to 20 cents with the broader microns, as mentioned, cheaper along with carbonising types, almost unsaleable at the processing end thus almost unwanted in the sale room.

Again a good week for merino growers as 19 and finer continue to improve to acceptable levels, finer than 18 now all above 2000 cents clean but still, as mentioned last week, 50 to 300 cents from the winter peaks of 2011. The gap from 21 to 18 micron now 550 cents, about where it should be, while 18 to 16.5 just an 85 cent difference. The “back legs out” debate touched on in last report is an interesting issue. We had an excellent example of hind legs out of fleece lines this week from Nyngan. Fleece averaged 4.2% VM, 970c/kg while the back legs had 12% VM to sell for 730 cents. We think with the back legs in the fleece lines VM rises up to 7/8% and prices back to low 800 cent range but it’s a case by case situation as to make a back leg line or not. Next week’s catalogue climbs to 47,500 bales. Current sentiment suggests there is quite a bit of covering and forward buying still outstanding to see the market solid at the very least.

Ag Concepts Fwd Prices at 10 February 2017

Micron

Date

Low

High

19

1-Mar-17

1730

1730

19

12-Apr-17

1710

1710

19

27-Sep-17

1640

1640

 

Main Buyers (This Week) 

 

1

Techwool

6669

2

Fox & Lillie

4661

3

Tianyu Wool

3209

4

Aust Merino Exp.

3035

5

PJ Morris

2914

6

Modiano

2680

7

Michell Aust.

2123

8

Kathaytex Aust.

1854

9

Chinatex

1836

  

Eastern Market Indicators (AUD cents/kg clean)

1437 cents é 15 cents compared with 03/02//2017

Northern Market Indicators (AUD cents/kg clean)

1518 cents é 19 cents compared with 03/02/2017

AUD/USD Currency Exchange

0.7625 ê 0.0019  compared with 03/02/2017

3 February 2017

Friday, February 03, 2017

WEEKLY MARKET REPORT

Week Ending 3rd February, 2017

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S31/16

This Week

M31/16

Last Sale

S30/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2038

2013

2004

+34

1550

+488

18

1971

1888

1907

+64

1531

+440

19

1752

1741

1735

+17

1439

+313

20

1549

1556

1537

+12

1384

+165

21

1438

1439n

1432

+6

1376

+62

22

1377n

1375n

1378

-1

1366n

+11

26

903

912n

919

-16

983n

-80

28

655

648

661

-6

839

-184

30

544

531

554

-10

760

-216

MC

1158n

1159

1160

-2

1150

+8

the trend continues

Another week of the split market being very apparent. Low VM, better testing wools, particularly finer than 19 micron, saw further increases and very strong support mainly from China. The positive aspect this week was a consolidation of prices for the types outside the strong demand areas of recent weeks like burry fleece types and broad merino wools. These types were heavily dominated by only a few buyers but were no cheaper than last week and it looks like they may have found a level. Certainly once the VM goes above 6% (as many of the fleece lines are) clean prices for the fleece lines are only around 100 cents better than the skirtings taken off them. Some classers are now double-skirting to remove the hind legs and there will be cases where that will pay dividends but it is a case by case scenario. With the finer clips it definitely is worth it but at the broader end it may not be the case as the hind legs themselves will test a lot broader and not attract great support.

At the finer end it was onward and upward, particularly for the well spec’d lines as choosy buyers pushed the better lines well above the indicator averages by up to 50 cents.

Whilst it is very exciting to see this demand at the finer end push prices to reasonable levels, it is by no means making new territory. A quick glance at the June, 2011, market reveals the 17 micron indicator 335 cents higher than this week and this was at a time when the Australian dollar was at 105.5 US cents!

Skirtings and merino cardings held reasonably well with minor movements either way whilst crossbreds still fail to perform and languish well behind levels of last year, particularly 28 and coarser. As mentioned in recent reports the crossbred burry oddments are at ridiculously low levels not seen in years.

Of interest to anyone dodging the heat next Sunday will be a feature on the Chinese wool market aired at noon on Landline on ABC TV.

Next week sees an increase in the offering to nearly 46,000 bales in three centres as Macwool lines up on Wednesday.

Ag Concepts Fwd Prices at 3 February 2017

Micron

Date

Low

High

19

12-Apr-17

1676

1676

21

24-May-17

1390

1390

19

14-Jun-17

1680

1680

 

Main Buyers (This Week) 

1

Techwool

6106

2

Fox & Lillie

3982

3

Lempriere (Aust)

3290

4

Aust Merino Exp.

2798

5

Modiano

2563

6

Chinatex

2548

7

Michell Aust.

1862

8

Kathaytex (Vic)

1539

9

Tianyu Wool

988

  

Eastern Market Indicators (AUD cents/kg clean)

1422 cents é 10 cents compared with 27/01//2017

Northern Market Indicators (AUD cents/kg clean)

1499 cents é 12 cents compared with 27/01/2017

AUD/USD Currency Exchange

0.7644 é 0.0101  compared with 27/01/2017