Weekly Market Reports


29 June 2018

Friday, June 29, 2018

WEEKLY MARKET REPORT

Week Ending 29th June, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S52/17

This Week

M52/17

Last Sale

S51/17

Sydney Change

Last Year

Sydney

Sydney Yearly

Change

17

2872n

2867

2869n

+3

2200n

+672

18

2524

2513

2538

-14

2130

394

19

2368

2369

2374

-6

1859

+509

20

2346

2351

2356

-10

1634

+712

21

2334n

2350

2324

+10

1543

+789

22

2328

2336

2340n (M)

+4 (M)

1476 (M)

+670 (M)

26

1535n

-

1545

-10

1103

+568

28

1029

1028

1052

-23

756

+273

30

705

695

709

-4

558

+147

MC

1482

1500

1495

-13

1184n

+298

MARKET SURGE SLOWS

Our last sale this week for the 2017/2018 season saw Fremantle return after not offering last week and push the quantity for the three Centres to 31,784 bales, well up on last week’s offering. Early in the week we heard from the exporters that they expected the market to slow and slow it did. The Eastern Market Indicator (EMI) slipped to 2056 cents down 17cents.

The market saw the finer fleece microns hardest hit, retreating 20 to 40 cents, the 19 to 20 micron fleece were off 10 to 20 cents. Interestingly a very small offering of 21 micron fleece wools managed to remain in record territory rising a further 10 cents.

We continue to hear from the show floor that Chinese mills want more supply of 21 to 22 micron long 100mm plus merino wools. Unfortunately with our continuing drought, most clips are finer and many have shorn early reducing the length.

We saw this week that short fleece wools (60mm and less) and poorer, very dusty types were very neglected by the buying trade. The skirting types also felt the slowing with broken and bellies slipping 30 to 50 cents for the week. Oddments also were off 5 to 10 cents and crossbreds down 5 to 20 cents, 30 micron being the most affected.

As the season closes it is interesting to see which exporters buy the most. Our top three exporters this season were:

  1. Techwool Trading with 13.6% or 242,410 bales
  2. Fox and Lillie with 10.6% or 189,003 bales
  3. Kathaytex with 7.9% or 140,721 bales.

So next week we start the 2018/2019 season with Sale 01. Currently there are 43,232 bales rostered for sale. A larger quantity as many growers wait for this sale to sell in the new financial year. Let’s hope that this larger quantity does not slow the market further. Macdonald and Co will offer on Thursday, 5th July, 961 bales.

All eyes are now on the dollar holding steady at 73 cents and assisting this market to stabilise. Keeping in mind that the falls we are seeing are miniscule when looking at the rises we have had this season. Some rain has been reported to us. Let’s hope we are seeing the end of this dry.

Ag Concepts Fwd Prices as at 29th June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

4-Jul- 18

2280

2300

21

12-Sep-18

2205

2205

21

17-Oct- 18

2135

2135

21

12-Dec-18

2100

2100

 

 

Main Buyers (this week)

1

Techwool  Trading

5144

2

Fox & Lillie

3476

3

Seatech Ind.

2442

4

Kathaytex  Aus.

2075

5

Tianyu  Wool

1980

6

Aus. Merino Exp.

1871

7

Endeavour Wool

1585

8

Michell Aust.

1232

9

PJ Morris Wool

591

Eastern Market Indicators (AUD cents/kg clean)

2056 cents ê 17 cents compared with22/6/2018

Northern Market Indicators (AUD cents/kg clean)

2088 cents ê 22 cents compared with 22/6/2018

AUD/USD Currency Exchange

0.7357 ê 0.0004 compared with 22/6/2018

22 June 2018

Friday, June 22, 2018

WEEKLY MARKET REPORT

Week Ending 22nd June, 2018

 

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S51/17

This Week

M51/17

Last Sale

S50/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2869n

2903

2857

+12

1534

+1335

18

2538

2558

2509

+29

1512

+1026

19

2374

2379

2280

+94

1476

+898

20

2356

2363

2261

+95

1420

+936

21

2324

2344

2259n

+65

1398

+926

22

-

2340n

2246n

+98 (M)

1379n

+961 (M)

26

1545

1536n

1494n (M)

+51 (M)

1100n (M)

+445 (M)

28

1052

1048

1003 (M)

+49 (M)

786

+266

30

709

699n

695 (M)

+14 (M)

703n

+6

MC

1495

1513n

1474n

+21

1084

+411

 

 

MARKET CONTINUES TO SURGE!

Once again the Australian wool market has headed into new territory - uncharted and unpredicted.

As Fremantle took another rest Sydney and Melbourne could only pull together and supply just under 21,000 bales this week to the auction; the smallest offering in 9 years. This, along with the Aussie dollar were the two main reasons for this weeks increase.

This market, the second last of 2017/2018 selling season finished in an extremely strong and positive position.

The EMI has risen by 52 to sit at 2073. The buyers flew out of the blocks on Wednesday, the EMI gained 42 firming up with another positive 10 on Thursday. The Australian dollar had a big impact as it dropped 2 cents compared to the previous week to sit comfortably between 0.736 and 0.739 over the two selling days.

Lack of supply was a big factor again this week, especially wools between 18 to 22 micron, which ended with an average increase of 80 cents. On the finer and ultra-fine end, 17.5 micron and below did not have as much of an increase due to a mixed quality section, still gaining a minimum of 13 cents. Crossbreds pushed ahead, the 26 to 28 microns especially into record territory averaging a 30 cent increase.

Merino cardings gained a solid 20 to 30 cents, seeing Melbourne step back over the 1500 mark to 1513, and Sydney sitting just 5 away at 1495.

Unfortunately, as most areas still wait for rain, sheep numbers keep pouring through the saleyards. Could 21 to 25 thousand bales a week be the national average in 6 months time and into the next couple of years?

As buyers scramble to find wool to keep their mills running overseas and with talk of new mills opening in China, who knows where the value of our quality product could peak?

Either way the wool market looks positive for the Australian wool grower.

Next week with Freemantle back online the three centres will be offering just over 33,000 bales.

Macdonald and Company Wool Brokers will be offering just over 900 bales on Wednesday the 27th June.

Looking forward to it. Will the EMI hit 2100? 

 

Ag Concepts Fwd Prices as at 22nd June, 2018

 

Micron

Date

Low

High

Micron

Date

Low

High

18

12 Dec 18

2255

2255

19

8 Aug 18

2200

2200

21

29 Aug 18

2021

2100

22

26 Sep 18

2050

2050

 

Main Buyers (this week)

1

Techwool 

3301

2

Fox & Lillie

2991

3

Tianyu  Wool

2430

4

Seatech Ind.

1424

5

Kathaytex 

1285

6

Michell Wool

1233

7

Aust. Merino

1226

8

Endeavour Wool

1079

9

VIC Wool

672

 

Eastern Market Indicators (AUD cents/kg clean)

2073 cents é 10 cents compared with20/6/2018

Northern Market Indicators (AUD cents/kg clean)

2110 cents é 14 cents compared with 20/6/2018

 

AUD/USD Currency Exchange

0.736 ê 0.0031 compared with 20/6/2018

15 June 18

Friday, June 15, 2018

WEEKLY MARKET REPORT

Week Ending 15th June, 2018

 

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S50/17

This Week

M50/17

Last Sale

S49/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2857

2821

2863n

-6

2197n

+660

18

2509

2491

2519

-10

2123

+386

19

2280

2286

2271

+9

1870

+410

20

2261

2277

2256

+5

1638

+623

21

2259n

2272

2254

+5

1554

+705

22

2246n

2270n

2231n

+15

1485n

+761

26

-

1494n

1491n

-

1109n

+385 (M)

28

-

1003

1020n

-

767n

+263 (M)

30

-

695

700n

-

-

-

MC

1474n

1475n

1479n

-5

1181

+293

 

WOOL MARKET PEAKED – NO !

 

It seemed last week that our market had peaked, but spurred along by insistent demand from China and curbed supply from how sheep numbers of Australia’s Woolgrowers are again feeling the benefits of the resurgence in wool.

This week’s market finished in a positive territory after loosing ground last week. The EMI rose by 10c to 2021c. The main push was in the 19.5-22.5 microns which rose by 10 to 40c while 18.5 micron and finer had falls of 5 to 30c. Interesting to hear a comment made to me by an exporter this week that the market we now have is driven by demand from mills and not by our short supply, the key driver of course is China who import close to 80% of our clip.

The skirting sector was similar to the fleece in that 19 micron and finer lost ground by 20 to 40c, lots with 4% vegetable matter and greater were most affected. The broader types rose by 10 to 20c.

Carding wools rose by 4c for the week and Crossbreds improved with mixed results. 27 micron improved while 28 to 30 micron eased slightly. Crossbred lambs wool was again sought after by the trade.

This week saw $58.45 million spent on wool purchases and so far this season we have seen a $3.32b spent, which is a far cry from 1998 when prices hit a low average of $5.10/kg, which was well below cost of production.

We have been hearing from the exporting trade that certain Chinese mills are wanting more wool that is 110-115mm long, because they cannot get enough due to the fact that many wool producers shore early to cash in on the market and some are shearing at 6 and 8 months. These longer wools are used in the worsted section with their end use being apparel or fabric. Most of the combing wools we see on the show floor now are measuring 60-90mm.

So next week we see only Sydney and Melbourne selling with approximately 21,326 bales on offer – the smallest offering of the year. Macdonald and Co will, on Thursday the 21st June offer 1688 bales.

Can we maintain these levels or go higher? Stay tuned.

 

 

Ag Concepts Fwd Prices as at 15th June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

18

12 Dec 18

2255

2255

19

8 Aug 18

2200

2200

21

29 Aug 18

2021

2100

22

26 Sep 18

2050

2050

 


Main Buyers (this week)

1

Fox & Lillie

3298

2

Techwool

2761

3

Seatech Ind.

2530

4

Tianyu

2318

5

Michell Wool

1555

6

Modiano

1472

7

United Wool Co.

1220

8

Endeavour Wool

929

9

Kathaytex

916

 

Eastern Market Indicators (AUD cents/kg clean)

2021 cents é 10 cents compared with 7/6/2018

Northern Market Indicators (AUD cents/kg clean)

2059 cents é 2 cents compared with 7/6/2018

 

AUD/USD Currency Exchange

0.765 ê 0.0016 compared with 6/6/2018

8th June 2018

Friday, June 08, 2018

WEEKLY MARKET REPORT

Week Ending 8th June, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S49/17

This Week

M49/17

Last Sale

S48/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2863n

2834n

2885

-22

2183n

+680

18

2519

2505

2554

-35

2075

+444

19

2271

2284

2316

-45

1837

+434

20

2256

2262

2258

-2

1574

+682

21

2254

2254

2239

+15

1505

+749

22

2231n

2242

2216n

+15

1422n (M)

-

26

1491n

1489n

1494

-3

-

-

28

1020n

1005

1023

-3

762n

+258

30

700n

698

709

-9

568n

+132

MC

1479n

1474n

1470n

+9

1180n

+299

HAVE WE REACHED THE PEAK?

After four weeks of continued large price increases the wool market has cooled slightly this week in the smallest offering of the season, only 26942 bales were available to the buying trade.

Despite this smaller offering, a softer tone was evident from the outset. The losses were mainly the finer microns resulting in 19.0 micron and finer losing between 25 and 50 cents clean.

A very limited supply of 21 micron wools and broader attracted strong demand pushing prices up by 15 cents clean for these types.

The Eastern Market Indicator (EMI) lost 16 cents off the record set in the previous sale and closed at 2011 cents.

The skirtings also suffered 20 to 40 cents loss, however skirting wools carrying less than 4.0% vegetable matter were not as affected by the drop  in price.

Crossbred wools were also cheaper with 28.0 to 30.0 microns off by 5 to 15 cents.

It was very evident this week that poorly prepared and very dusty clips in all microns lost buyer support and were the hardest hit in the falling market.

Most carding types remained firm on a limited offering.

Quantities increase next week with all 3 centres selling and a roster of 28.956 bales, Macdonald and Co will offer 1081 bales Wednesday 31st. Will we see more falls who knows.

Ag Concepts Fwd Prices as at 1 June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

11-Jul-18

2155

2155

21

14-Nov-18

1900

1950

21

26-Sep-18

1965

2005

21

13-Feb-19

1910

1910

 

Main Buyers (this week)

1

Techwool

4339

2

Fox & Lillie

2864

3

Seatech Ind.

2562

4

Tianyu

2034

5

Modiano

1872

6

Endeavour Wool

1502

7

Michell Wool

1494

8

Aust. Merino Exp.

1380

9

United Wool Co.

Eastern Market Indicators (AUD cents/kg clean)

2011 cents ê 16 cents compared with 31/5/2018

Northern Market Indicators (AUD cents/kg clean)

2057 cents ê 19 cents compared with 31/5/2018

AUD/USD Currency Exchange

0.767 é 0.0104 compared with 31/05/2018

1 June 2018

Friday, June 01, 2018

WEEKLY MARKET REPORT

Week Ending 1st June, 2018

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S48/17

This Week

M48/17

Last Sale

S47/17

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

2885

2888n

2834n

+51

2183n

+702

18

2554

2532

2501

+53

2088

+466

19

2316

2331

2261

+55

1836

+480

20

2258

2266

2193

+65

1564

+694

21

2239

2263

2186n

+53

1476n

+763

22

2216n

2246n

2174n

+42

1416 (M)

+730 (M)

26

1494

1488n

1438

+56

1053n

+441

28

1023

1019

999

+24

755n

+268

30

709

709

695

+14

563n

+146

MC

1470n

1479n

1449n

+21

1180

+290

OMG - EMI CRACKS 2000!!!

History was made as the AWEX EMI broke through the 2000 cent barrier to finish the sale at 2027, a 44 cent lift for the series. The all-time record was also set in $US terms now at 1533 up 32 cents for the week. The month of May has been a cracker for the wool market. The past 4 sales have seen the EMI sky-rocket by 191 cents (10%) which makes this rise the largest monthly gain since early 2012. In the mad scramble for volume buyers almost disregarded any faults - VM, colour and cott - to lift all microns 30 to 70 cents higher pushing all microns further into record territory leaving just 35 bales of fleece passed-in.

Room 2 types were not neglected either as the skirting market kept pace with their fleece counterparts. The

< 19 micron carrying less than 3% VM were 60/80 cents to the good while broader, burrier types gained 30 to 50 cents. Cardings again improved after a steady opening session to have all types 10 to 30 cents dearer as all 3 centres’ MCIs are 1470 to 1480. Crossbreds had their best result for 5 weeks as fine to medium types (25 to 28 micron) put on 25 to 55 cents with broader types up to 15 cents dearer.

This was another staggering sale where history was made as we offered our biggest catalogue since Easter and the largest in Sydney this sale. According to our calculations, if the EMI was tracking live with the auctions we were selling at the precise moment it would have broken the 2000 cent mark on Wednesday. According to historical charts and some guru’s conversion rate the boom of 1951 in real terms is 5 times higher than where we are now. This would equate to the EMI at about 10,700 cents, still along way to go and prove that those prices are unlikely to ever be surpassed!! Quantity is the only thing on the exporters minds at the moment as the need to keep machinery running is of more concern than the cost of raw wool or the price that can be passed down the processing pipeline from topmakers to spinners and weavers and on to retailers without pricing the final garment out of customers’ reach and cooling the current “insatiable demand”.

How long can this bull-run last?? Wool prices and end uses demand is in uncharted territory. Today’s demand is coming from vastly varied garments like outdoor sportswear, next to skin, double-facing fabrics and fake fur along with the traditional clothing. Next week has Fremantle on the sidelines as the East Coast centres offer 27,000 bales in what could be another record setting sale.

          Ag Concepts Fwd Prices as at 1 June, 2018

Micron

Date

Low

High

Micron

Date

Low

High

21

11-Jul-18

2155

2155

21

14-Nov-18

1900

1950

21

26-Sep-18

1965

2005

21

13-Feb-19

1910

1910

        Main Buyers (this week)

1

Techwool

4037

2

Fox & Lillie

3608

3

Seatech Ind.

2460

4

Aust. Merino Exp.

2375

5

Kathaytex Aust.

2135

6

Lempriere

1650

7

Endeavour Wool

1594

8

Michell Wool

1410

9

PJ Morris

814

Eastern Market Indicators (AUD cents/kg clean)

2027 cents é 44 cents compared with 25/05/2018

Northern Market Indicators (AUD cents/kg clean)

2076 cents é 43 cents compared with 25/05/2018

AUD/USD Currency Exchange

0.7562 é 0.0008 compared with 25/05/2018