Weekly Market Reports


14 July 2017

Friday, July 14, 2017

WEEKLY MARKET REPORT

Week Ending 14th July, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S02/17

This Week

M02/17

Last Sale

S01/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2196

2192

2192

+4

1577

+619

18

2108

2072

2118

-10

1543

+565

19

1824

1854

1845

-21

1501

+323

20

1607

1610

1618

-11

1479

+128

21

1530

1538

1529

+1

1469

+61

22

1477n

1474

1462n

+15

1456n

+21

26

1108

1110n

1101n

+7

1103n

+5

28

766

778

759

+7

755

+11

30

560

568

549

+11

636

-76

MC

1139n

1153n

1164

-25

1084

+55

A SOLID ENDING – ONLY JUST!

The final sale before the annual 3 week winter recess saw 46,000 bales up for sale. The AWEX EMI struggled to move as markets on the Eastern Seaboard were mixed, back 5 cents in Sydney and unchanged in Melbourne resulting in the EMI giving up just 2 cents to 1522. To make matters more confusing, Fremantle’s indicator rose by 9 cents to 1570. The upward shift in the FRX by 1 cent to 77.07 had the market gaining 15 cents in $US terms to 1173 - this rise in the A$ failing to dampen demand overall. For the 2nd sale running the predicted solid to dearer market didn’t really eventuate except for sub 17.5 and 22 micron that rose by 5 to 15 cents. 18 to 20s fell 10 to 25 cents. Premiums were hard to come by unless lots had exactly the “right specs” but some passed-in lots from a fortnight ago sold up to 80 cents higher and a few “non-mulesed” types came under renewed buyer pressure.

Skirtings finished the sale on a stronger note as buyers scrambled to secure what quantity was on offer. Buyer emphasis concentrated on the < 18 micron types with < 4%VM, these lifting by 15 to 25 cents (the odd lot up by 50 cents) as most other types remained rock solid bar some carbonising lots with heavy colour/cott. Two lots from Dunedoo and 3 lots of BKN from Orange made 1000 to 1148 cents - great money!! In fact, one lot of WNR BKN made more on a clean basis than one of its fleece lines did, 1986 to 1972. Cardings looked to have run their race for the moment. Last sale’s losses were compounded even more as most types in this sector were cheaper. LKS looked to be the hardest hit-30 to 50 cents back- while STN/CRT fell by 10 cents. Crossbreds finished the sale on a rising note mirroring last sale’s gains, broader types up by 5/10 cents while < 25 micron quoted 20 to 30 cents to the good.

The last 2 sales clearly demonstrate the ability of the market to hold its levels (or thereabouts) in the face of adverse factors such as larger volumes and RFX movements as subtle shifts either way for various microns has occurred.  Buyers were keen to purchase wool but still very choosy with what they bought and price sensitive. New demand was mainly for merino fleece < 19 micron, skirtings and crossbreds as some broader fleece types and cardings took a hit from a lack of demand. The largest local exporter and biggest Chinese indent buyer again led the way as other buyers fell into line to pick away at the offering. When Fremantle joined in another large local exporter exerted more pressure on the better fleece types to swamp all rival orders as other buyers had to up the ante to complete outstanding orders. Topmakers were also more active on the higher VM and “off” types in the fleece room as well as skirtings to pretty much keep machinery running while the supply of wool globally comes to a standstill for the next 3 weeks. Most participants, more-so buyers, head off on a 3 week recess with wool sales to recommence 9th August. We should have a catalogue of 1200 bales to offer. 

Ag Concepts Fwd Prices at 14 July 2017

Micron

Date

Low

High

21

16-Aug-17

1525

1525

21

30-Aug-18

1505

1505

Main Buyers (This Week) 

1

Fox & Lillie

4758

2

Techwool

4443

3

Tianyu

4413

4

Aust Merino Exp.

4394

5

Lempriere Aust.

2831

6

PJ Morris

2824

7

Modiano

2689

8

Seatech Ind.

2542

9

Kathaytex Aust.

1093

 

Eastern Market Indicators (AUD cents/kg clean)

1522 cents ê 2 cents compared with 7/07//2017

Northern Market Indicators (AUD cents/kg clean)

1588 cents ê 5 cents compared with 7/07/2017

AUD/USD Currency Exchange

0.7707 é 0.0107  compared with 7/07/2017

7 July 2017

Friday, July 07, 2017

WEEKLY MARKET REPORT

Week Ending 7th July, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S01/17

This Week

M01/17

Last Sale

S52/16

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2192

2160

2200n

-8

1579

+613

18

2118

2085

2130

-12

1554

+564

19

1845

1864

1859

-14

1516

+329

20

1618

1624

1634

-16

1503

+115

21

1529

1541

1543

-14

1492

+37

22

1462n

1468

1476 (M)

-8 (M)

1469n

-7

26

1101n

1103n

1103

-2

1072n

+29

28

759

765n

756

+3

755

+4

30

549

558n

558

-9

650

-101

MC

1164

1163n

1184n

-20

1088

+76

MARKET ESCAPES ALMOST UNSCATHED!

The opening sale of the season saw the largest national catalogue (51,000 bales) on offer since the Easter Show sale in April. Forecasts of a solid market seemed to fade as the week progressed. The favourable FRX and a trickle of business that was written late last week wasn’t enough to have the market hold onto current levels. A general softening of prices had all merino indicators 5 to 15 cents lower than last sale. As has been the pattern of buying for a long time, good types with the right “specs” came under spirited competition as the burrier lots (4% VM) looked to be under pressure from the increase in volume of these types and were discounted accordingly. The AWEX EMI gave up just 1 cent to 1524 and fell by 9 cents to 1158 in US$ terms. These levels are actually above last sale’s levels (1507 and 1154), this due to the readjustment of the 3 regional indicators and the EMI which is done periodically by AWEX.

For the 2nd sale running skirtings defied their fleece counterparts and mostly moved ahead. The better style, sub 18 micron types with < 6% VM lifted by 20 cents while all others were rock solid bar lots with heavy col/cott still attracting large discounts with some 10/15% VM types irregular. Cardings started the sale on par with the previous session but a change of sentiment on the final day saw all types in this sector fall by 20 to 30 cents. Crossbreds started the season with mixed results as finer types < 28 micron finished either side of last sale’s levels as broader microns (> 28) lost 5 to 10 cents.

This was a somewhat disappointing result to the opening sale of the new season. After a bit of business was written late last week and the currency falling to, at one point, below 76 cents from a high of over 77.55 hopes that the big offering could be absorbed evaporated early this week even though, on reflection, the fall could have been a lot larger than we had. The market held up in part due to one of China’s largest indent buyers re-entering the market after a quieter past 4 weeks seemingly not deterred by the increased volume. Other buyers in the fleece room soon sensed no slow down in their buying strategy so these rivals had to pick up the slack to acquire inventory to fill sold positions or provide future trading fodder.  Most buyers initially stuck to a buy-in price level rather than letting volume dictate purchasing patterns. New business was sporadic early in the sale but as prices failed to fall away less than most expected, demand increased and looks set to filter into next sale - the final before the 3 week winter recess.     

In news from AWTA, testing figures now reveal that Dubbo is now the 5th largest testing site in the country testing 104,000 bales last season. Fremantle was the biggest coring centre followed by Geelong, Adelaide and Melbourne with Goulburn behind us. Next week has 47,000 bales on offer; we sell late on Thursday with 1688 bales catalogued.

Ag Concepts Fwd Prices at 7 July 2017

Micron

Date

Low

High

21

23-Aug-17

1500

1505

21

12-Sep-18

1350

1350

Main Buyers (This Week)

1

Techwool

7690

2

Fox & Lillie

4078

3

Seatech Ind.

3902

4

Aust Merino Exp.

3562

5

Tianyu

3381

6

Lempriere Aust.

3337

7

Michell

2838

8

PJ Morris

2782

9

Modiano

2429

  

Eastern Market Indicators (AUD cents/kg clean)

1524 cents ê 1 cents compared with 30/06//2017

Northern Market Indicators (AUD cents/kg clean)

1593 cents ê 6 cents compared with 30/06/2017

AUD/USD Currency Exchange

0.7600 ê 0.0055  compared with 30/06/2017