Weekly Market Reports


14 December 2018

Friday, December 14, 2018

 WEEKLY MARKET REPORT 

Week Ending 14th December, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S24/18

This Week

M24/18

Last Sale

S23/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2532

2500

2513

+19

2538

-6

18

2402

2371

2379

+23

2300

+102

19

2247

2248

2218

+29

2086

+161

20

2178

2188

2147

+31

1883

+295

21

2145

2156

2129

+16

1745

+400

22

-

2155n

2140 (M)

+15 (M)

1633 (M)

+522 (M)

26

1205n

1229n

1205

0

1115

+90

28

855n

863

855

0

785

+70

30

-

693

683n (M)

+10 (M)

600 (M)

+93 (M)

MC

1146

1138n

1183

-37

1470

-324

WISHING ALL A VERY MERRY WET, WET CHRISTMAS!!

The final sale of the year delivered good news and an early Christmas present for growers that had wool in as all sectors recorded lifts bar cardings. The AWEX EMI added 13 cents to its value to finish the year at 1862 - a 100 cent (5.8%) increase from 12 months ago and, in US$ terms, almost identical at 1346. All microns regardless of style, VM and other faults were in good demand, all posting 15 to 30 cent rises with the odd lot with outstanding specs or non-mulesed up to 50/100 cents better than their indicators.

Skirtings also went well with a solid opening day to edge higher in the final session by 10 cents. As mentioned earlier cardings were the only sector to finish in negative territory as all types gave up 35 to 50 cents resulting in the 3 centres averaging 44 cent falls with the MCIs ranging from 1146 to 1105 cents - a disappointing end to the year after the previous 3 sales saw increases of 180 cents. Crossbreds put aside the past 3 erratic sales as most microns gained 10 to 15 cents.

The anticipated larger offering didn’t faze buyers as purchasing patterns returned to some form of normality as the biggest trader flexed their muscle and other companies were forced to follow suit. Techwool Trading bought over 6,500 bales, costing over $13m. The biggest indent buyer was also in the market concentrating on merino fleece types only with other local trading houses competing against them but not pushing them to extreme levels that would be out of reach of their client’s ability to pay the desired price. Also not to be out-done was China’s biggest top-maker who was looking to build inventory for the upcoming 3 week recess and Europe’s largest top-maker who dominated the lower spec types and crossbreds and skirtings.

A spectacular year for the market as the highs of June (2073) and August (2089) were offset by the low point of 1776 in early November. This was the cheapest point for cardings (1020) while their peak was 1563 cents in mid September. We wish all our clients a Merry Christmas and Happy New Year with drought breaking rains the best Christmas present we could all wish for. Wool sales resume on 9th January, 2019.

Main Buyers (This Week)

1

Techwool

6507

2

Tianyu

4005

3

Fox & Lillie

3791

4

Aust. Merino

3505

5

Kathaytex

2457

6

Seatech Ind.

2423


Eastern Market Indicators (AUD cents/kg clean)

1862 cents é 13 cents compared with 7/12/2018


Northern Market Indicators (AUD cents/kg clean)

1906 cents é 9 cents compared with 7/12/2018


AUD/USD Currency Exchange

0.7228 é 0.0003 compared with 7/12/2018

 
 

7 December 2018

Friday, December 07, 2018

WEEKLY MARKET REPORT

Week Ending 7th December, 2018

 AWEX Northern Micron Indices Comparison


AWEX INDEX

This Week

S23/18

This Week

M23/18

Last Sale

S22/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2513

2445

2487

+26

2477

+36

18

2379

2326

2372

+7

2273

+106

19

2218

2202

2188

+30

2015

+203

20

2147

2156

2141

+6

1794

+353

21

2129

2133

2129

0

1669

+460

22

-

2140n

-

-1 (M)

1564 (M)

+576 (M)

26

1205

1244n

1335n

-130

1064

+141

28

855

850

-

-

772

+83

30

703n

683

-

-

571

+132

MC

1183

1174n

1199

-16

1433

-250

PENULTIMATE SALE DELIVERS ... NOT MUCH!

When looking at the AWEX EMI it’s hard to imagine little change with the 11 cent fall to 1849 cents but there were many twists and turns in the different sectors as XBs contributed to the slight fall. By week’s end the merino fleece sector had made some reasonable gains, up to 30 cents with some finer, lower style types over 2% VM commonly 50/60 cents to the good.

After a slow start merino skirtings came home with a wet sail again with gains similar to the fleece sector, up to 30 cents. Cardings took a breather from their rapid rises of a few weeks ago losing what they gained last series as all types retreated by 30 cents. After a few sales of whirlwind rises buyers put the brakes on any further gains in the XB sector citing the last series’ jumps too much as most microns lost 70 to 130 cents. The “fake fur” order that led to the sudden rises is still in place and will come into play again in January. Another reason for the fall could’ve been the sudden lift in volume of XBs particularly in Melbourne where only 17% of the Room 2 wools were merino PCS and BLS.

A good sale for merino growers as these types look to be building momentum again. The main Chinese indent buyer was again quiet but local traders filled this void to out-bid him on most occasions operating on a strict buy-in level price, not their usual method of purchasing.  Australia’s biggest buyer, Techwool Trading, flexed their muscle to buy 16% of the total sold this sale buying twice the volume of the next buyer on Thursday.

The sharp decline in the FRX from almost 74 cents on Monday to below 72 cents on Thursday - a 2 cent fall - was too late to help the markets on the Eastern seaboard but did benefit the Fremantle market, up by 20 to 45 cents on Thursday. The release of Australia’s poor GDP figures and trade issues between China and the USA saw financial markets tumble and currencies react. Next week sees the final sale of the year with 48,000 bales on offer - the largest sale since early August. Hopefully buyers will need to buy and ship wool to keep machinery running in January.

Ag Concepts Fwd Prices at 7 December 2018

Micron

Date

Low

High

21 12-Dec-18 2125 2125
21 6-Mar-19 2100 2100

Main Buyers (This Week)

1

Techwool

5405

2

Aust. Merino

2802

3

Tianyu

2800

4

Fox & Lillie

2691

5

Endeavour Wool

2233

6

PJ Morris

1970


Eastern Market Indicators (AUD cents/kg clean)

1849 cents ê 2 cents compared with 30/11/2018

Northern Market Indicators (AUD cents/kg clean)

1897 cents ê 8 cents compared with 30/11/2018

AUD/USD Currency Exchange

0.7225 ê 0.0090 compared with 30/11/2018