Weekly Market Reports


18 April 2019

Thursday, April 18, 2019

 WEEKLY MARKET REPORT 

Week Ending 18th April, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S42/18

This Week

M42/18

Last Sale

S41/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2483

2358n

2497

-14

2768n

-285

18

2404

2355

2410

-6

2355

+49

19

2291

2291

2293

-2

2088

+203

20

2264n

2255

2272

-8

1981

+283

21

-

2238

2238n (M)

0 (M)

1951 (M)

+287 (M)

26

1450n

1501n

-

+41 (M)

1247

+203

28

1244

1266

1205n

+39

926

+318

30

-

976

-

-22 (M)

688 (M)

+288 (M)

MC

1084

1072n

1096

-12

1368n

-284

MARKET FINALLY SETTLES!

The wool sale was held at the Royal Easter Show this week and had an overall positive tone to finish this run of sales before the 1 week recess for Easter and ANZAC Day. The AWEX EMI posted a 7 cent increase due mainly to Melbourne’s momentum, up 11 cents, compared to the 1 cent rise in Sydney.  The Sydney market opened on a solid note only to see sub 18 micron fade late in the final session to end the sale 5 to 15 cents cheaper and broader types either side of unchanged by 5 cents. Again buying strategies were a mirror image of previous sales - good types with the right specs were in hot demand as the vast quantity of poorer types were cheaper dragging the indicators lower.

Skirtings made little inroads into their run of falls over the past month as the best style lots lifted by 10/20 cents while all other types were firm. The carding market continued to fall with LKS losing 15 to 30 cents as all other descriptions remained unchanged. The appetite for XB wool seems insatiable at the moment as more records were set for 28/30 microns - rises ranged from 20 to 40 cents.

The market finally put the brakes on the long run of falls, 7 weeks and 91 cents, the longest falling run since late 2003. While this run of falls is disappointing, it was preceded by an 8 week run of increases that started in the final sale of 2018 and the gain was 178 cents, so still an indicator that is 87 cents to the good since December.

More news to come out of the IWTO Conference: Giovanni Schneider (MD of the Schneider Group) gave an update of the wool textile industry in Italy. Wool makes up just 1% of global consumption of fibres. Italy accounted for 11% of fibre used in their textile industry (men’s knitwear). Conditions in the worsted weaving business were difficult with manufacturers and retailers holding excess stocks of suits and a major challenge for the industry worldwide was the ever increasing demand from consumers for sustainable products. Another presentation on the British wool market highlighted the low prices for > 32 micron wool which are now very competitive compared to nylon. Brexit would not affect the price of wool but the British Wool Marketing Board has started a new marketing campaign to lift grower returns. Wool sales recommence on 1st May. 

Main Buyers (This Week)

1

Techwool

4123

2

Tianyu Wool

4039

3

Fox & Lillie

3143

4

Aust. Merino

3031

5

Seatech Ind.

2824

6

Endeavour Wool

2711


Eastern Market Indicators (AUD cents/kg clean)

1943 cents é 7 cents compared with 12/04/2019


Northern Market Indicators (AUD cents/kg clean)

1979cents é 1 cent compared with 12/04/2019


AUD/USD Currency Exchange

0.7193 é 0.0030 compared with 12/04/2019

12 April 2019

Friday, April 12, 2019

WEEKLY MARKET REPORT 

Week Ending 12th April, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S41/18

This Week

M41/18

Last Sale

S40/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2497

2375n

2512

-15

2763

-266

18

2410

2334

2422

-12

2293

+117

19

2293

2271

2299

-6

2037

+256

20

2272

2238

2277

-5

1929

+343

21

2264n

2238

2268n

-4

1893

+371

26

-

1460n

1445n

+2 (M)

1204n (M)

+256 (M)

28

1205n

1268

1205n

0

899

+369

30

-

998

-

+35 (M)

638 (M)

+360 (M)

MC

1096

1100

1101

-5

1352n

-256

A HAPPY EASTER SHOW SALE!!

Once again the wool market was in a virtual holding pattern as the AWEX EMI slipped by another 7 cents to 1936. Small decreases were the order of the day in the fleece sector as 18.5 and broader finished in buyers’ favour (-5) as 18s and finer gave up 10 to 15 cents. The falls in the other 2 centres were heavier: Melbourne’s losses ranged from 5 to 45 cents while Fremantle’s fleece indicators fell 25 to 40 cents as the inferior types bore the brunt of the negative buyer tone with the better style wools with good specs holding their ground - this being the purchasing pattern for a number of sales now.

Skirtings had a tough opening day as losses ranged from 20 to 50 cents depending on VM, style and length but held these levels in the final session. Cardings had a less tumultuous sale than the previous few series as just LKS gave up another 10/15 cents. All 3 MCIs are now within 4 cents of each other, 1096 to 1100. Crossbreds again were the star of the show as increases ranged from 25 to 65 cents.

The 88th IWTO conference was held this week in Venice, Italy with the theme of “Wool in Excellence” as 300 delegates were in attendance. Italy is home to the world’s best textiles even though they purchase just 5% of our clip when it is processed into garments and textiles, turn over is more in value than the entire Australian wool clip. Constant discussion also centred on traceability and sustainability with many references to mulesing in between. The big message to take home is the National Wool Declaration and its critical importance and the need to have 100% of wool declared. AWI (Don) presented a short film on the drought that captured everyone’s attention and you could’ve heard a pin drop. This film featured 3 of our clients and how they are managing their sheep and country and was very much appreciated by the non Australian audience who have been hearing so much about the drought but had no visual idea of its severity on the land, livestock and people and the shrinking supply of wool. The Macwool Facebook page has had over 37,000 views of the film to date. To have a look search “Australian wool supply continues despite drought” on Facebook or YouTube.

Wool sales move to the Easter Show next week before the 1 week recess, let’s hope the market can improve.

Ag Concepts Fwd Prices as at 12 April, 2019

Micron

Date

Low

High

21

26-Jun-19

2250

2250


Main Buyers (This Week)

1

Seatech Ind.

3414

2

Fox & Lillie

3236

3

Techwool

3047

4

Aust. Merino

3022

5

Tianyu Wool

2842

6

Endeavour Wool

2016

Eastern Market Indicators (AUD cents/kg clean)

1936 cents ê 7 cents compared with 05/04/2019

Northern Market Indicators (AUD cents/kg clean)

1978 cents ê 8 cents compared with 05/04/2019

AUD/USD Currency Exchange

0.7163 é 0.0045 compared with 05/04/2019

5 April 2019

Friday, April 05, 2019

WEEKLY MARKET REPORT 

Week Ending 5th April, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S40/18

This Week

M40/18

Last Sale

S39/18

Sydney

Change

Last Year

Sydney (W39)

Sydney Yearly

Change

17

2512

2415n

2513

-1

2764

-252

18

2422

2365

2437

-15

2301

+121

19

2299

2290

2316

-17

2037

+262

20

2277

2253n

2293

-16

1922

+355

21

2268n

2253n

2279n

-11

1888

+380

26

1445n

1458n

1425n

+20

1198 (M)

+260 (M)

28

1205n

1203n

1178

+25 (M)

859

+346

30

-

963n

945

+18 (M)

614 (M)

+349 (M)

MC

1101

1117n

1142

-41

1332

-231

SAME OLD, SAME OLD!!

The pattern of the last series kept going this sale as a minute fall of 4 cents for the AWEX EMI to 1943 was the end result. This was the 6th sale in a row that saw a negative tone, the longest downward spiral (84 cents) since September 2012. The FRX was generally stable and has been trading in the range of 70.50 to 71.50 for 8 weeks. The MPGs had small losses, 17 micron and finer in buyers’ favour and broader than this lost 10 to 15 cents. As has been the case for several sales now fine, dusty, tender types bore the brunt of the falls while the good spec wools were rock solid. The volume of “best topmaking” fleece types was only 19% of the 21,500 bales on offer nationally with this figure down to 27% year to date compared to 43% the previous season illustrating just how much the drought is affecting the quality of the offering especially on the eastern seaboard.   

Skirtings also continued their cheaper trend as, like the fleece sector, only the very best fine micron, low VM types remained unchanged as the burrier, broader lots were 20 to 40 cheaper. Cardings fell again as the MCI in Sydney has given up 137 cents in the last 3 sales (1238 to 1101) as losses ranged from 20 to 60 cents for all descriptions in this sector. The only shining light was the Crossbred sector. Its stellar run since Christmas carried most microns to new record levels again adding 10 to 20 cents. From 25 to 32 microns increases have ranged from 185 to 350 cents since sale recommenced in January.

Talk of the market bottoming out over the past fortnight is yet to come to fruition. Exporters are still to find a comfortable level to trade the huge volume of drought affected wool that has and will continue to hit the market for a long time yet. While the merino types struggle XBs remain the flovour of the month as the above-mentioned figures show as more and more blending takes place between the 2 breeds as a means to cheapen up the final product. March testing figures from AWTA show little change in volumes as 3.7% less wool was tested this March compared to 2018. The progressive total for weight tested this season compared to the previous is 10.3% less - down from the June to December figure of 12%. If this status quo remains in play till June, 2019, this will give us 323mkg for the season which is well above the 308/312mkg estimate of last September. Export weight is tipped to be 2.45% less than last season as the average clip yield has fallen from 65 to 63% due obviously to the worsening quality of the clip as less clean kgs are exported. Well done to those clients who were lucky enough to be under last Friday’s storms, 65 to 110mm. Hopefully the next round of rain is more widespread and here soon. Market must be close to bottoming out soon, next week maybe???

Main Buyers (This Week)

1

Fox & Lillie

3674

2

Seatech Ind.

3337

3

Techwool

3126

4

Aust. Merino

2806

5

Tianyu Wool

2685

6

Endeavour Wool

2668

Eastern Market Indicators (AUD cents/kg clean)

1943 cents ê 4 cents compared with 29/03/2019

Northern Market Indicators (AUD cents/kg clean)

1986 cents ê 7 cents compared with 29/03/2019

AUD/USD Currency Exchange

0.7118 é 0.0021 compared with 29/03/2019