Weekly Market Reports


25 August 2017

Friday, August 25, 2017

WEEKLY MARKET REPORT

Week Ending 25th August, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S08/17

This Week

M08/17

Last Sale

S07/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2274

2282n

2282

-8

1588n

+686

18

2169

2168

2201

-32

1553

+616

19

1862

1862

1924

-62

1496

+366

20

1663

1652

1724

-61

1478

+185

21

1640n

1611

1668

-28

1471

+169

22

-

1532

1602n

-70 (M)

1450 (M)

+82 (M)

26

1149n

1144n

1180

-31

1139n

+10

28

883n

888

899

-16

777

+106

30

658n

660

682

-24

677

-19

MC

1102

1093n

1110

-8

1053

+49

RAM SALES OFF TO A FLYER!

The wool market’s “day in the sun” was just that!! The record prices in some categories only lasted a day as the market made a hasty retreat in all sectors this week despite only the 2 Eastern Seaboard centres operating with 37,500 bales on offer. The market was cheaper from the outset although the negative tone had somewhat dissipated in the final session as 17.5 and finer actually regained some of the previous day’s losses. The AWEX EMI gave back 42 cents from last sale’s 64 cent climb to 1572(the largest weekly fall since April). The fall in US$ terms was similar (40 cents to 1240) as the A$ spent most of the week either side of 79 cents. The only microns to escape unscathed were < 17.0 micron, spinners’ style with excellent L/S readings as 17.5 to 18.5 and 21s came back 20 to 35 cents while 19/20 and 22 > fell by 60 to 80 cents with lots carrying heavy col/cott and high VM levels were discounted up to 100 cents. Growers balked at this sudden price drop to pass-in over 16% of fleece wool.

Skirtings followed a similar pattern to the fleece room as an opening day’s fall was negated by a solid closing day. By the last lot sold better style types finer than 19 micron and < 3% VM were solid to 20 cents cheaper whereas high VM types fell by 50 cents. Crossbreds also couldn’t escape the carnage as finer than 26 micron fell by 30 cents while 28s and broader looked 15/25 cents back from last sale. The carding sector was the least affected of any as losses were minimal. All operators looked to be back in the market as LKS fell 10 cents in Sydney and burrier types in Melbourne lost 30 to 50 cents.

Buyers clawed back a little of the price gains of the opening 2 sales as the heat came out of the market. The only shining light was the superior super-fine types that held their ground as buyers may have been focussing on next week’s opening designated Super-fine sale of the season in Sydney.  Next week has all 3 centres back on line with 44,000 bales on offer.

The National Sheep Show and Ram Sale was held in Dubbo this week with a ram from Nerstane Merino Stud at Woolbrook, via Walcha, crowned Supreme Ram reversing the result from Bendigo in July when it ran 2nd to a ram from Eilan Donan stud in Victoria.  Prices didn’t quite follow the judges’ scorecard as the Nerstane ram made $40,000 with a 1st class ticket to Uruguay and a syndicate paid $52,500 for the Eilan Donan sheep.  Other notable sales were Roseville Park, top of $25,000 to average $9,555. Langdene from Dunedoo had 2ndtop price of $50,000 to average $17,400 and Alfoxton from Armidale averaged $11,200 and topped at $30,000. The sale average $10,400 which was about $4,000 higher than last year, hopefully a sign of things to come for on-property sales??

Ag Concepts Fwd Prices at 25 August 2017

Micron

Date

Low

High

21

27-Sep-17

1580

1580

21

25-Oct-17

1550

1555

21

11-Sep-19

1325

1325

 Main Buyers (This Week)

1

Fox & Lillie 

5652

2

Aust Merino Exp.

5374

3

Techwool

3757

4

Tianyu

3444

5

Seatech Ind.

2962

6

Lempriere Aust.

2340

7

Kathaytex Aust.

2169

8

New England Wool

1679

9

G Schneider

1679

Eastern Market Indicators (AUD cents/kg clean)

1572 cents ê 42 cents compared with 18/08//2017

Northern Market Indicators (AUD cents/kg clean)

1650 cents ê 29 cents compared with 18/08/2017

AUD/USD Currency Exchange

0.7891 ê 0.0045  compared with 18/08/2017

18 August 2017

Friday, August 18, 2017

WEEKLY MARKET REPORT

Week Ending 18th August, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S07/17

This Week

M07/17

Last Sale

S06/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2282

2295n

2227

+55

1583

+699

18

2201

2179

2153

+48

1541

+660

19

1924

1930

1853

+71

1484

+440

20

1724

1726

1648

+76

1461

+263

21

1668

1663

1576

+92

1455n

+213

22

1603n

1602

1519n

+84

1440n

+163

26

1180

1154n

1119

+61

1136n

+44

28

899

895n

817

+82

753n

+146

30

682

666n

608

+74

663n

+19

MC

1110

1126n

1099n

+11

1046

+64

RED HOT MARKET – RECORDS BROKEN!!

The experts were spot on with their predicted strong market as last sale’s rising prices were just a precursor to what was to unfold this week. The market roared into action on the opening day as the EMI had its largest daily gain (46 cents) for over 2 years. The 2nd day saw more rises, somewhat subdued when compared to the previous day but still double digit lifts. By week’s end the EMI had forged ahead by 64 cents to break through the 1600 cent barrier (1614) - a new record since reports began being published dating back to the mid/late 1970s. The rise was just as impressive in US$ terms, up by 60 cents to 1281, this on the back of a wildly fluctuating A$ (78.15 to 79.60 cents). All types across all microns were caught up in the buying frenzy. 18s and finer posted 45 to 55 cent jumps with some of the spinners and best top making style lots < 18.5 up to 150 cents to the good. 18.5 to 23s added 70 to 95 cents as 22 and 23 micron are now at all time record levels (1603 and 1565) with 21s just 14 cents shy of their May 1988 record of 1682. Of the 24,300 bales of fleece offered nationally 99.1% were sold just 0.9% (220 bales) were passed-in.

Skirtings were also caught up in the “panic buying” patterns with meteoric gains to say the least. Most types and descriptions across all microns and VM levels (bar very heavy cott/colour) added 80 to 140 cents with a clearance rate of 98.1%. Crossbreds also benefitted from the aggressive buying patterns in the merino sector. 50 to 85 cent gains were the order of the day as 28 to 30 micron now adding 125 cents to their quotes in 2 weeks.  It was only back in June that most of the talk was of this sector being very sluggish till at least Christmas - a great turn around!! Cardings looked to be left out of the upward lift in prices as most types posted modest gains of up to 10/15 cents.

Another great week to be selling wool as several records were broken and demand definitely outstripped supply. Quite a few large forward orders had to be filled from some of the bigger Chinese mills and it looked as though no-one was arguing over price as bidding was, at times, frantic with price ideas determined only when the hammer fell!! Several mills were looking to get set for delivery months 2 to 3 months in advance, unlike the past few years where buying was “hand to mouth” - buy, ship and process - as quickly as possible now to forward buying. This old (but new) tactic could prove to be an astute and opportune change of direction as the swing in FRX over the past 6 weeks has gone against all expert forecasts.

Don’t forget the National Ram show and sales here in Dubbo next week, Tuesday to Thursday. The installation of our new core machine is under way and hoping to test wool by late next week. Next week has just the 2 east coast centres selling 36,000 bales as market direction is anyone’s guess!!

Ag Concepts Fwd Prices at 18 August 2017

Micron

Date

Low

High

21

20-Sep-17

1555

1565

21

15-Nov-17

1485

1485

21

14-Feb-18

1510

1510

Main Buyers (This Week)

1

Fox & Lillie 

5652

2

Techwool

5374

3

Seatech Ind.

3757

4

Aust Merino Exp.

3444

5

Lempriere Aust.

2962

6

Kathaytex Aust.

2340

7

PJ Morris

2169

8

Modiano

1679

9

Tianyu

1679

 

Eastern Market Indicators (AUD cents/kg clean)

1614 cents é 64 cents compared with 11/08//2017

Northern Market Indicators (AUD cents/kg clean)

1679 cents é 65 cents compared with 11/08/2017

AUD/USD Currency Exchange

0.7936 é 0.0059  compared with 11/08/2017

11 August 2017

Friday, August 11, 2017

WEEKLY MARKET REPORT

Week Ending 11th August, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S06/17

This Week

M06/17

Last Sale

S02/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2227

2216n

2196

+31

1571

+656

18

2153

2103n

2108

+45

1533

+620

19

1853

1860n

1824

+29

1492

+361

20

1648

1654n

1607

+41

1471

+177

21

1576

1580n

1530

+46

1462

+114

22

1519n

1523n

1477n

+42

1446

+73

26

1119

1126n

1108

+11

1123n

-4

28

817

826n

766

+51

738

+79

30

608

614n

560

+48

652 (M)

-38 (M)

MC

1099n

1130n

1139n

-40

1041n

+58

OFF TO A FLYER!

Wool sales recommenced this week after the annual 3 week winter recess. The large anticipated national offering of 54,000 bales that made the Sydney sale to be held over 3 days (4 years to the week since that has happened) and the climbing FRX to, at one point, a 2 year high over 80 cents had all participants nervous as to where the market might finish by the end of the sale. Signals late last week that the market could be okay were emerging as futures traded up to 20 cents higher than the closing market and the A$ was retreating from its highs of last week. The market opened on a cautious note as exporters looked to see where levels would be set. With buying strategies set the market gained momentum as the sale progressed with all 3 centres posting double digit gains on Wed/Thurs. The AWEX EMI climbed 28 cents to 1550, just 1 cent shy of the level set in late March. In US$ terms the rise was an impressive 48 cents to 1221, this due to the stronger A$. No micron was left out of the rising market as 25 to 55 cent gains were the order of the day bar 18.5 (just a 15 cent lift) but stylish lot finer than this with > 35nkt readings looked 70 to 120 cents higher as a few Chinese orders competed with Italian spinners and weavers. Growers were more than happy with the lift in prices as the clearance rate for fleece wool on the eastern seaboard was 99%.

Skirtings also benefitted from the dearer market. The finer low VM types (< 5%) came under most pressure adding 20 to 40 cents to their quotes with some superior style lots 50 to 100 cents to the good with all other types tending sellers’ favour. The carding sector completely bucked the rising trend of all other sectors to continue its cheaper inclination before the recess. All types in this sector took a hit - LKS back 60 cents while CRS/STN looked 30 to 40 cents cheaper with one of the main carding buyers taking a “wait and see” approach this week as sales in this sector have become extremely hard to book up making the short term outlook a tough one. Good news for the XB sector as renewed interest led to some handy price increases, this despite the article in last week’s “The Land” forecasting more subdued demand through till Christmas. Finer types < 26 micron and 32s added 5 to 10 cents while probably the most pleasing aspect of the rising market was 28 to 30 micron averaging a 50 cent jump.

A great (and to a degree) a somewhat surprisingly good start to sales. After a typically tentative start orders came flooding in from overseas users at full market rates to have an immediate effect on the market as any outstanding orders were filled and buyers began in earnest to secure quantity for the new business that had been written. Also helping the market is the improved quality of the offering, more FNF fleece types with higher strength and lower dust content than in the autumn. Next sale has the national selection back to 38,000 - 14,000 bales less than this week with most experts talking a very strong market.

Ag Concepts Fwd Prices at 11 August 2017

Micron

Date

Low

High

21

6-Sep-17

1510

1510

21

18-Oct-17

1505

1505

21

13-Dec-17

1450

1450

Main Buyers (This Week)

1

Techwool

5848

2

Fox & Lillie  

5763

3

Aust Merino Exp.

4737

4

Lempriere Aust.

4586

5

PJ Morris

4333

6

Modiano

4008

7

Tianyu

3011

8

MichellAust.

2620

9

Kathaytex Aust.

1702

 

Eastern Market Indicators (AUD cents/kg clean)

1550 cents é 28 cents compared with 14/07//2017

Northern Market Indicators (AUD cents/kg clean)

1614 cents é 26 cents compared with 14/07/2017

AUD/USD Currency Exchange

0.7877 é 0.0170  compared with 14/07/2017