Weekly Market Reports


27 April 2018

Friday, April 27, 2018

WEEKLY MARKET REPORT

Week Ending 27th April, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S43/17

This Week

M43/17

Last Sale

S42/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2763

2726n

2768n

-5

2324

+439

18

2361

2342

2355

+6

2178

+183

19

2105

2091

2088

+17

1897

+208

20

2005

1984

1981

+24

1591

+414

21

1969

1966

1952

+17

1473

+496

22

-

1956

-

+27 (M)

1393n (M)

+163

26

1343

1324n

1247

+96

1043

+300

28

993

1000

926

+67

738

+255

30

743

741

674

+69

579

+164

MC

1379n

1389n

1368n

+11

1165

+214

LEST WE FORGET

This week’s sale took on the unusual pattern of Tues/Thurs selling with the Anzac Day holiday in between, now widely regarded as our most important day of the year as more and more young people embrace the Anzac spirit and an ever increasing number of war-time stories emerge to re-inforce the significance of the day. Rumours of a solid market were confirmed on Tuesday as all sectors rallied as the AWEX EMI posted a 22 cent gain to a new high of 1847 to eclipse the previous record of 1834 at the end of February. The market may have suffered an Anzac day hangover on Thursday as the market for merino fleece types lost 5/15 cents in Sydney but a worrying 20 to 30 cents in the other 2 centres.  Despite the slight pull-back in the last session, the market still posted gains for all MPGs and the odd lot from Coonabarabran, Coolah and Gulgong with the “right specs” was 50 to 200 cents higher than their indicators.

Skirtings also benefitted from the renewed interest as, unlike their fleece counterparts, recorded rises over both days. The < 5% VM types up to 20 micron rose by 20/50 cents with burrier lots remaining rock solid all series. Cardings had a solid but unspectacular sale as most descriptions were quoted as firm to 20 cents higher than their previous values with a line of LKS from Wellington making an incredible 1050c (1630c clean). The revival of the Crossbred sector since Easter has been nothing short of spectacular with all microns adding 80 to 200 cents over the last 3 sales. The 130 cents jump for 25s in Melbourne last sale was outdone in Sydney with an incredible 149 cent climb this week as all other microns lifted by 30 to 90 cents.

The dramatic fall in the $A from just above 78 cents last Friday to 76 cents on Tuesday certainly helped the market in the opening session but couldn’t maintain the rise on Thursday even with a better FRX that has the $A at 77.75 cents. As stated last week the poorer selection of FLC  on offer is getting harder to average into orders as the high yielding and low VM types are becoming more scarce as just 37% of the FLC offering is below 1% VM compared to 50% 6 weeks ago. Also endangering the FLC prices as we move into the winter shearings is the lack of best topmaking style fleece - 17% back from 31% in the same time. Next week has 43,000 bales on offer and the cheaper markets in Melbourne/Fremantle could mean a steadier market all round.

                 Ag Concepts Fwd Prices as at 27 April, 2018

Micron

Date

Low

High

21

20-Jun-18

1930

1930

21

29-Aug-18

1800

1800

21

13-Mar-19

1660

1660

      Main Buyers (this week)

1

Techwool

7477

2

Fox & Lillie

4834

3

Tianyu

3445

4

Seatech Ind

2763

5

Aust. Merino Exp.

2691

6

PJ Morris

2096

7

Kathaytex Aust.

2063

8

Endeavour  Wool

2008

9

Modiano

1986

Eastern Market Indicators (AUD cents/kg clean)

1846 cents é 21 cents compared with 20/04/2018

Northern Market Indicators (AUD cents/kg clean)

1908 cents é 27 cents compared with 20/04/2018

AUD/USD Currency Exchange

0.7573 ê 0.0235 compared with 20/04/2018


20 April 2018

Friday, April 20, 2018

WEEKLY MARKET REPORT

Week Ending 20th April, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S42/17

This Week

M42/17

Last Sale

S41/17

Sydney Change

Last Year

Sydney (Wk41)

Sydney Yearly Change

17

2768n

2753n

2763

+5

2317

+451

18

2355

2344

2293

+62

2173

+182

19

2088

2090

2037

+51

1895

+193

20

1981

1983

1929

+52

1608

+373

21

1952

1951

1893

+59

1507

+445

22

-

1929

1854 (M)

+75 (M)

1410 (M)

+444 (M)

26

1247

1261n

1208

+39

1041

+206

28

926

943

899

+27

735

+191

30

674

688

638

+36

584n

+90

MC

1368n

1381n

1352n

+16

1159

+209

BACK INTO RECORD TERRITORY

With last week’s 54,000 bale offering behind us and production forecasts now prophesying a decline in wool production it wasn’t that surprising to see the market push further into record territory. The offering of 39,605 bales saw the EMI end the week just 9 cents short of its all time high set late February but it was the 21 and 22 micron indicators that set new highs. It is quite conceivable that we could see 21 microns reach 2000 cents clean in the coming weeks!

The pace gathered slowly as the week progressed and clearly it was the medium wools where the strongest competition was. Fine wools, which led the rises late last year appeared to have plateaued with fewer of the best style lines on offer. Seasonal conditions are now impacting the quality of the offering with fleece wools under 65% making up over half the offering. Buyers are struggling to fill orders with enough high yielding, sound lines so discounts for lower average types will likely increase. Competition was mainly from Chinese interests but this week saw increased interest from Indian connections who punted some time back that the market would fall. It seems their stock levels will have depleted so it was either suck it up and wade into the market or shut up shop.

Crossbred wools this week also posted solid gains to hit a two year high with fair to average XB clips back to averaging over $1000 a bale. Merino oddments also saw another strong week with the carding indicator rising for the fourth consecutive week, about 100 cents for the month.

Next week is looking promising as Fremantle (which sells for two hours after Sydney and Melbourne close) continues to strengthen, normally a positive sign for the coming week. There is a slightly higher offering next week of 43,648 bales which shouldn’t pose too many problems. There is almost no wool stored on hold and brokers receivals are starting to lighten off as the impact of essentially 12 months of below average rain stalls production. Winks might be the safest bet in town but the next safest bet would be that this market won’t drift much over the coming weeks. Wool sales straddle Anzac Day next week with MacWool to offer a stylish catalogue of 1085 bales on the second day.

                                                         Ag Concepts Fwd Prices as at 20 April, 2018

Micron

Date

Low

High

21

16-May-18

1930

1930

21

11-Jul-18

1810

1810

21

14-Nov-18

1730

1730

Main Buyers (this week)

1

Techwool

5729

2

Fox & Lillie

4782

3

Modiano

3004

4

PJ Morris

2735

5

Seatech Ind

2359

6

Tianyu

2143

7

Endeavour  Wool

2072

8

Aust. Merino Exp.

1681

9

Michell Aust.

1411

Eastern Market Indicators (AUD cents/kg clean)

1825 cents é 49 cents compared with 13/04/2018

Northern Market Indicators (AUD cents/kg clean)

1881 cents é 35 cents compared with 13/04/2018


AUD/USD Currency Exchange

0.7808 é 0.0058 compared with 13/04/2018

13 April 2018

Friday, April 13, 2018

WEEKLY MARKET REPORT

Week Ending 13th April, 2018

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S41/17

This Week

M41/17

Last Sale

S39/17

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2763

2723n

2764

-1

2317

+446

18

2293

2312

2301

-8

2173

+120

19

2037

2047

2037

0

1895

+142

20

1929

1918

1922

+7

1608

+321

21

1893

1878

1888

+5

1507

+386

22

-

1854

-

-4 (M)

1410 (M)

+444 (M)

26

1208

1204n

-

+6 (M)

1043 (M)

+161 (M)

28

899

908

859

+40

735

+164

30

638

638

610

+28

584n

+54

MC

1352n

1375n

1332

+20

1159

+193

BIG QUANTITY, NO PROBLEM!!

All participants, especially growers, were holding their collective breaths as this week’s sale commenced after the Easter recess last week. The large catalogue at the Easter Show and the forecast of a 57,000 bale offering had buyers wondering where all the wool was coming from?? Melbourne opened proceedings on Tuesday and what we feared did in fact happen. The market cheapened by 16 cents as < 18 micron retracted by 50/60 cents with others losing 10 to 20 cents. The market was mixed on Wednesday as Sydney fell to Melbourne’s level with them stabilising and Fremantle just in sellers’ favour. Futures traded better than pre-Easter levels which gave hope that the market may have bottomed. Thursday saw a significant turn-around in fortunes as all 3 centres posted double digit rises. By week’s end the EMI appreciated by just 4 cents to 1776 (16 micron the only real culprit) falling by 23 cents as all others were either side of unchanged.

Skirtings had a firm sale after a 20/30 cent fall on the opening day. All types recovered these losses in the final series to finish the sale solid. Cardings were the best performing sector of any as the 3 centres averaged 27 cent rises with LKS pushing the indicators up with gains of 25 to 50 cents with all other types fully firm and some LMS extreme. Crossbreds also looked to be in buyers’ favour as gains ranged from 20 to 40 cents for all microns bar 32s that fell around 10 cents.

An excellent result considering the sentiment early in the week. Despite all currencies used in wool trading appreciating between 0.7% and 1.2% against the AUD the wool market bucked that usually negative trend causing reaction on the AUD pricing locally and continuing upwards. The early sale results initially matched the general concern of buyers pre-sale that quality and the big quantity on offer was going to hamper the market’s ability to hold prices at the pre-Easter levels. By the end of the week this was not the case as forecast quantities for the next 3 weeks are averaging under 40,000 bales per week and the dearer futures market that led the turn-around in fortunes on Thursday indicates that the underlying factors in the market that demand is exceeding supply should hold wool growers in good stead for the short term. National quantities drop to 40,000 bales next week with Macwool offering 1050 bales on Wednesday with a favourable market predicted.

Ag Concepts Fwd Prices at 13 April, 2018

Micron

Date

Low

High

21

16-May-18

1855

1855

21

11-Jul-18

1780

1800

21

12-Jun-19

1600

1600

Main Buyers (This Week)

1

Fox & Lillie

6388

2

Techwool

6149

3

PJ Morris

3525

4

Aust. Merino Exp.

3503

5

Seatech Ind.

3338

6

Lempriere

3256

7

Tianyu

3214

8

Endeavour Wool

2518

9

Kathaytex Aust.

1151

Eastern Market Indicators (AUD cents/kg clean)

1776 cents é 4 cents compared with 29/03/2018

  Northern Market Indicators (AUD cents/kg clean)

1846 cents é 9 cents compared with 29/03/2018

  AUD/USD Currency Exchange

0.7750 é 0.0050 compared with 29/03/2018