Weekly Market Reports


29 September 2017

Friday, September 29, 2017

WEEKLY MARKET REPORT

Week Ending 29 th September, 2017

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S13/17

This Week

M13/17

Last Sale

S12/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2238

2199n

2228

+10

1613

+625

18

2072

2078

2072

0

1596

+476

19

1791

1790

1778

+13

1527

+264

20

1597

1604

1588

+9

1405

+192

21

1532n

1524

1540

-8

1393

+139

22

1477n

1476n

1477n

0

1364n

+113

26

1093n

1103n

1101

-8

1123n

-30

28

798

813

813

-15

770

+28

30

558n

563

586

-28

603

-45

MC

1142

1139n

1113n

+29

1063n

+79


MARKET FLAT- RAIN GAUGE EMPTY

For the 2nd week in a row the wool market struggled to move in any direction as the AWEX EMI lost just 3 cents to 1522. The local movements were a mirror image of the previous series as Sydney edged forward by 3 cents and Melbourne gave up 7 cents. Some might say a disappointing sale given the quality and style of the selection in Sydney and the almost 2 cent depreciation in the FRX to just above 78 cents. This shift in the A$ saw a 30 cent fall in US$ terms to 1190. Movements were small as most microns were in sellers’ favour to 10 cents better (bar 21s back by 8 cents) but with the superior types in Sydney came some healthy premiums. Some cracking super-fine types we offered from Merriwa and Mudgee looked to be 100 to 200 cents above their indicators with some low mid-break types also selling well above expectations.

Skirtings took until the final day of selling to edge their nose in front. After conceding up to 20 cents early in the series, a reversal in fortunes saw most types and descriptions finish about 10 cents to the good. Cardings rose for the 4th sale in a row as the 2 East Coast centres averaged a 25 cent jump while all types added 15 to 35 cents to their previous levels. It was a different story for the XB sector as it suffered losses for the 3rd sale in a row. 26, 28 and 32 microns fell by 10/15 cents while 30s lost 30 cents.

More to come out of the Nanjing Wool Market was the announcement of 2 E-commerce platforms for all things wool in China with one already operating and includes functions of providing finance and logistics. A common theme from the conference was the need for further industry programs within the education, promotion and innovation fields as most attendees thought the current high prices can be maintained by innovating new products as double faced and fake fur products have created more demand.

A final remainder that you only have until next Friday to become a shareholder of AWI if you aren’t already one. Almost half of wool levy payers have not registered to be a shareholder. Macwool will offer 710 bales next Wednesday.


Ag Concepts Fwd Prices at 29/09/2017

Micron

Date

Low

High

21

22-Nov-2017

1520

1520

Main Buyers (This Week)

1

Tianyu Wool

3997

2

Fox & Lillie

3867

3

Techwool

3330

4

Seatech Ind.

2120

5

PJ Morris Wool

1988

6

Aust. Merino Exp.

1386

7

G Schneider

1296

8

Michell Aust.

1175

9

Lempriere Aust.

923

Eastern Market Indicators (AUD cents/kg clean)

1522 cents ê3 cents compared with 22/09/2017

Northern Market Indicators (AUD cents/kg clean)

1599 cents é 3 cents compared with 22/09/2017

AUD/USD Currency Exchange

0.7821 ê 0.0182 compared with 22/09/2017


22 September 2017

Monday, September 25, 2017

WEEKLY MARKET REPORT

Week Ending 22nd September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S12/17

This Week

M12/17

Last Sale

S11/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2228

2180n

2207

+21

1577

+651

18

2072

2065

2078

-6

1549

+523

19

1778

1775

1775

+3

1491

+287

20

1588

1612

1595

-7

1410

+178

21

1540

1548

1547

-7

1395

+145

22

1477n

1490

1473n

+4

1386n

+91

26

1101

1100n

1107

-6

1145n

-44

28

813

813

816

-3

748

+65

30

586

573n

601

-15

585

+1

MC

1113n

1117n

1094

+19

1062n

+51


AWI BOARD CANDIDATES LOCKED AND LOADED!

We were very appreciative last week at the extent of support shown for the nomination of Don Macdonald as a candidate for the AWI Board elections in November. Growers have until the 6th of October to check their shareholder entitlements and their eligibility to vote. Polling will open around October 23 and close 15th November. There are five candidates for three positions. There are several issues that will form the centrepiece of candidate’s campaigns, negative press being one of them. With a market indicator at 1525, one should expect all to be rosy, but it isn’t! More in the coming weeks.

This week’s wool market was “steady as she goes” as both selling days mirrored each other with 3 cent rises in Sydney. The market in Melbourne did not fare as well to lose 4 cents for the sale, this resulting in the AWEX EMI to remain unchanged for the week at 1525 cents. The shift in US$ terms was minute, just a 1 cent fall to 1220 as the exchange rate looks to be stuck at 80 cents. Super-fine types looked to have warmed up for the 2nd designated super-fine sale of the season next week as 17/17.5s added 10 to 20 cents while 18.5 to 19.5 and 22s were in sellers’ favour with all others in buyers’ favour as the odd lot with good specs looked up to 50 cents better than their indicators while high mid-break lots attracted higher discounts than in previous sales.

The talk of a dearer market didn’t quite eventuate this week (some buyers reporting tight finance reserves before their letters of credit flow in) but all of the 400 delegates that attended the Nanjing wool conference last weekend are confident and the mood buoyant and a rise is only a matter of ‘when’ not ‘if’. Local traders are comfortable operating at the current levels as prices can be passed down the processing chain. Up to the current sale volumes are 10% above last season but this could change as the prolonged dry weather has shearing well ahead of schedule and is also forcing growers to off-load sheep that aren’t being grazed on failed crops as hand feeding costs start to soar whilst hay and grain prices take off as the prospect of a decent harvest over an ever increasing area diminishes daily.

Ag Concepts Fwd Prices at 22 September 2017

Micron

Date

Low

High

21

08-Nov-17

1530

1540

21

06-Dec-17

1540

1540



Main Buyers (this week)

1

Fox & Lillie

5746

2

Techwool

4253

3

Aust Merino Exp.

3341

4

Tianyu Wool

2710

5

Seatech Ind.

2410

6

PJ Morris Wool

1948

7

Endeavour Wool

1672

8

Kathaytex Aust.

1491

9

G Schneider

1442

Eastern Market Indicators (AUD cents/kg clean)

 1525 cents ó 0 cents compared with 15/09/2017

 Northern Market Indicators (AUD cents/kg clean)

1590 cents é 6 cents compared with 15/09/2017

AUD/USD Currency Exchange

0.8003 é 0.0005  compared with 15/09/2017

15 September 2017

Friday, September 15, 2017

WEEKLY MARKET REPORT

Week Ending 15th September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S10/17

This Week

M10/17

Last Sale

S09/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2207

2213n

2273

-66

1605

+602

18

2078

2068

2139

-61

1580

+498

19

1775

1794

1839

-64

1517

+258

20

1595

1607

1646

-51

1452

+43

21

1547

1551

1597

-50

1438

+109

22

1473n

1463

1523n

-50

1416n

+57

26

1107

1123n

1141

-34

1175n

-68

28

816

833

852

-36

788

+28

30

601

590n

636

-35

625

-24

MC

1094

1088n

1089n

+5

1053

+41

MARKET BACK TO SQUARE #1

This week’s market could not maintain last sale’s levels as savage falls on the opening day were met by consolidation in the final session. Falls extended across all microns ranging from 50c to 70c. The AWEX EMI lost 31c for the week to finish at 1525c - in US $ terms the fall was 22c to 1221c. Only the better style and finer micron lots escaped the carnage of the losses quoted above (20/30 cent falls). Growers were caught by the surprisingly large correction to pass in a total of 20% of fleece lines for the week.

Merino skirtings also suffered the same fate as their fleece counterparts with similar patterns for both days. Most merino skirtings were 20c to 30c cheaper with the < 3% VM least affected with 19microns and coarser 10c to 20c from last week’s levels. Again only the finer, better styled types looked to be only marginally cheaper for the sale. The carding sector was the only sector to finish the sale in positive territory as all types were 10c to 15c to the good. Crossbreds followed the lead of their merino counterparts with all micron ranges 20c to 30c cheaper.

The opening 2 sales after the annual winter recess in August yielded great results as the EMI rose 92c but this gain has now been completely wiped out over the past month as the indicator is back to exactly the same level it finished on in early July before the recess. Reasons for the fall do vary but most exporters and traders look to have weakened buyer confidence due to FRX, slowing of new business, increased volume of wool sold which has restricted buyers’ ability to obtain adequate finance to fund further purchases and the selection of types coming onto the market (especially fleece wools) with abnormally high mid-breaks.

Many of you may have been contacted this week to sign an AWI Director Nomination form on behalf of Don Macdonald. 100 eligible shareholder signatures were required which, as we found out, was harder than we thought as around 40% of wool tax levy payers have not become shareholders. A couple of weeks ago woolgrowers were sent two letters from AWI advising them of levies paid in the last three years. One letter was to eligible shareholders stating their voting entitlements. The other letter was to levy payers inviting them to become a shareholder. This letter also showed the amount of wool tax paid during the last three years. If you received the latter we would urge you to fill in the form and lodge it either online or by mail.

Macwool will offer 1030 bales next Wednesday. Let's hope there's good news from the Nanjing Wool Conference.

Main Buyers (This Week)

1

Fox & Lillie

4264

2

Aust Merino Exp.

3278

3

Techwool

3204

4

Tianyu Wool

3033

5

Seatech Ind.

2646

6

PJ Morris Wool

2347

7

Kathaytex Aust.

1715

8

G Schneider

1400

9

New England Wool

736

            Eastern Market Indicators (AUD cents/kg clean)

            1525 cents ê 31 cents compared with 08/09/2017

            Northern Market Indicators (AUD cents/kg clean)

            1590 cents ê 38 cents compared with 08/09/2017

AUD/USD Currency Exchange

0.8008 é 0.0017  compared with 08/09/2017

8 September 2017

Friday, September 08, 2017

WEEKLY MARKET REPORT

Week Ending 8th September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S10/17

This Week

M10/17

Last Sale

S09/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2273

2263

2315

-42

1593

+680

18

2139

2122

2186

-47

1561

+578

19

1839

1848

1838

+1

1498

+341

20

1646

1646

1643

+3

1460

+186

21

1597

1588

1598

-1

1445

+152

22

1523n

1509n

1518n

+5

1436n

+87

26

1141

1135n

1125

+16

1167n

-26

28

852

836

848

+4

771

+81

30

636

625

633

+3

619n

+17

MC

1089n

1086

1086n

+3

1049

+40

MARKET FLATTENS OUT!

The market flattened out this week as the AWEX EMI moved by the barest of margins on both days, down by 1 cent each day, a 2 cent fall for the series to 1556. The lift in the A$ to over 80 cents saw the numbers move ahead in US$ terms by 12 cents to 1243. The market again looked to split into 2 as it did the previous sale but not in the same pattern as finer types - < 18.5 - fell out of favour to the tune of 20 to 50 cents undoing all the good work of last sale. The broader microns on offer from 19 to 23 were quoted in sellers’ favour by up to 10 cents (clawing back some of the 20 to 40 cent losses from last sale). Perhaps it was the lesser style finer types that were on offer this week and the rise in the FRX that weighed the market down and had buyers pulling back their price idea for sub 18.5 microns - this a disappointment to growers that missed last week’s sale.

The scenario was almost a carbon copy for merino skirtings with the fleece room. The better style low VM types, < 17.5 micron and 3% VM fell by 20/30 cents. The broader, burrier lots (over 18 micron and 5% VM), after a sluggish opening session, gained momentum to end the sale about 10 cents dearer. Cardings halted their falling trend by the barest of margins to have most types in this sector up to 5 cents to the good. Crossbreds also reversed their falling trend of last sale (bar 25s) losing 10 cents as all other microns from 26 to 32 added 5 to 15 cents.

A sale of consolidation as (bar the fine fleece and skirtings being readjusted by the exporters) other sectors were pretty much unchanged despite the A$ climbing to over 80 cents a few times this week. Fine wools again demonstrated how fickle they can be - flavour of the month one week and almost neglected the next! Quantity has had no bearing on price movement, rather quality and FRX movements look to be dictating price. Early in the year all the talk was of the A$ drifting lower to below 70 cents. This certainly has not been the case as now the $ looks settled around the 80 cent mark and, with every new development coming out of Nth Korea, stock markets get nervous and react to what might be on the horizon.

Ram sales are in full swing with excellent results being reported. Coddington Uardy Poll at Wellington was 1st cab off the rank with a top price of $9,500 to average $1,933 for 108 rams sold. Kerin Poll at Yeoval broke some national records at their ram sale. All 359 rams penned were sold to average $2,457 - $211 higher than last year. The top price was $26,000 and the sale grossed an incredible $882,000. Haddon Rig sold a combination of Poll and Horned rams to sell 145 in total to average $2,638.

Ag Concepts Fwd Prices at 8 September 2017

Micron

Date

Low

High

21

25-Oct-17

1560

1560

21

13-Dec-17

1520

1520

Main Buyers (This Week)

1

Fox & Lillie 

5120

2

Techwool

3717

3

Lempriere Aust.

3488

4

Aust Merino Exp.

3327

5

PJ Morris Wool

2673

6

Seatech Ind.

2164

 

Eastern Market Indicators (AUD cents/kg clean)

1556 cents ê 2 cents compared with 01/09/2017

Northern Market Indicators (AUD cents/kg clean)

1628 cents ê 8 cents compared with 01/09/2017

AUD/USD Currency Exchange

0.7991 é 0.0090  compared with 01/09/2017

1 September 2017

Friday, September 01, 2017

WEEKLY MARKET REPORT

Week Ending 1st September, 2017

AWEX Northern Micron Indices Comparison 

AWEX INDEX

This Week

S09/17

This Week

M09/17

Last Sale

S08/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2315

2290

2274

+41

1599n

+716

18

2186

2149

2169

+17

1567

+619

19

1838

1856

1862

-24

1513

+325

20

1643

1645

1663

-20

1490

+153

21

1598

1577

1640n

-42

1480

+118

22

1518n

1516

-

0

1462n

+56

26

1125

1121n

1149n

-24

1167n

-42

28

848

850

883n

-35

791

+57

30

633

628n

658n

-25

671n (M)

-43 (M)

MC

1086n

1080n

1102

-16

1056

+30

NEW CORE MACHINE UP AND RUNNING!

The market had a topsy-turvy series as the market looked to split into 2 as 18.5 and broader struggled to find a level and finer than this micron benefitted from renewed competition as a superior selection was on offer in Sydney. By week’s end the EMI had lost just 14 cents (0.9%) to 1558 after giving up 23 cents on the opening day - the high A$ at 79.7 on Wednesday not helping - only to claw back 9 cents in the final session. The move was also minute in US$ terms, -9 cents to 1231.  The excellent array of super-fine types saw these < 18 micron post solid gains of 15 to 50 cents and up to 200 cents for selected “spinner and superior” style lots and some even commanding a 300/400 cent premium. Broader microns opened the sale (30/50 cheaper) but did recover to finish the week 20/40 back with lots containing colour/cott, high mid-breaks and high VM discounted 50 to 80 cents.

Skirtings followed a similar pattern to the fleece room - a tough opening day to recover by week’s end. Types containing < 5% VM testing finer than 18 micron were par to 100 cents dearer for the odd cracking lot depending on style and VM. We had BKN from Mudgee make 1410 cents while BLS from the same grower fetched 1173 - incredible money. 19 micron and broader with higher burr content with cott/colour were quoted 30/50 cents cheaper. Cardings again struggled to find a level as all types in this sector fell around 15 cents. Crossbreds were also on the receiving end of the initial negative tone losing 15 to 35 cents before stabilising on Thursday, this sector having the highest pass-in rate of 18%.

The market has certainly made a hasty retreat from its high point of 2 weeks ago (1614 to 1549 on Wednesday) a 65 cent fall over 3 selling days. This, however, was not as rapid as the preceding rises of the previous fortnight - a 92 cent lift from 1522 to 1614. Corrections can be swift either up or down as the past 4 sales have seen but maybe a new level has been set. Buyers did report business being written at the end of last week but at what price is still up for debate. The sluggish start down to a “new level” did lead to wool being booked up on Wednesday night in China, India and Italy, thus the renewed activity on Thursday that transferred into an improving market. The competition was intense on these better style types as the Chinese pushed the Italians on virtually every lot but Italy prevailed to buy almost all of the selection. Buying patterns from all processors is generally strong as all and sundry are keen to fill their supply chains while better wools hit the market but much will depend on consumer attitude at the retail end as to whether the market can be sustained at these prices.

After a 2 week instillation of our new core machine we started testing on Tuesday. All seems to be running well with the odd teething problem as we had to forgo next week’s sale (S10) but back on track for Sale 11, Thursday 14th, September.

Ag Concepts Fwd Prices at 1 September 2017

Micron

Date

Low

High

21

25-Oct-17

1550

1550

21

24-Jan-18

1515

1515

21

28-Feb-18

1515

1515

Main Buyers (This Week)

1

Fox & Lillie 

5538

2

Techwool

1080

3

Lempriere Aust.

3296

4

Aust Merino Exp.

3050

5

Seatech Ind.

2686

6

PJ Morris Wool

2653

7

Kathaytex Aust.

2227

8

Michell Aust.

2177

9

Tianyu

2075

 

Eastern Market Indicators (AUD cents/kg clean)

1558 cents ê 14 cents compared with 25/08//2017

Northern Market Indicators (AUD cents/kg clean)

1636 cents ê 14 cents compared with 25/08/2017

AUD/USD Currency Exchange

0.7901 é 0.0010  compared with 25/08/2017