Weekly Market Reports


12 July 2019

Friday, July 12, 2019

WEEKLY MARKET REPORT 

Week Ending 12th July, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S02/19

This Week

M02/19

Last Sale

S01/19

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2175

2133

2133

+42

2793n

-618

18

2143

2116

2107

+36

2435

-292

19

2043

2054

2024

+19

2282

-239

20

2033

2046

2009

+24

2242

-209

28

1045n

1053

1030n

+15

924

+121

30

-

861

835 (M)

+26 (M)

684 (M)

+177 (M)

MC

1010

990n

981

+29

1453

-443

MARKET FINISHES DEARER!!

Hopes were high that the market could continue its recovery from last week for the final sale before the annual 3 week winter recess. Solid gains on both days saw the AWEX EMI add 31 cents to finish at 1754. The push to secure wool was evident from the opening lot through to the end of the sale as buyers were keen to finish outstanding orders and new business for prompt shipment that was written 2 weeks ago. The small volume of wool on offer and the favourable FRX certainly helped lift all MPGs by 20 to 45 cents - some types with “good specs” were in the order of 20 to 100 cents dearer than the indicators.

Merino skirtings outdid their fleece counterparts as excellent demand saw prices ascend by 70 to 90 cents for all types regardless of VM, micron or yield. Cardings also continued their recovery. This sector saw gains of 25/30 cents as the MCI broke back through the 1000 cent mark to finish at 1010, a 29 cent gain. Crossbreds weren’t immune from the rising market as well with 28 to 30 micron 15 to 25 cents to the good.

There was much relief as the market continued its good start to the season after the hiding it took in June. One alarming figure to come out of the 2 opening sales is the small volumes, 65,000 bales offered compared to 84,400 in the corresponding sales 12 months ago, 19,350 less (23%). Confidence is a massive driver in any commodity market and wool is no different. The resumption of sales in the 1st week of August will be closely watched to see whether the positive buoyant mood can be transferred into meaningful volumes of new business to stabilise the whole supply chain as a mini recovery for 2 weeks has not convinced traders that we’ve turned a corner. The elephants in the room are still there: China/US tariff war, global economic growth slowdown, Brexit troubles, Middle East unrest and the ability of end users (manufacturers to retailers) to still absorb the higher prices will all play critical roles in price determination into the spring. 

AWI, in conjunction with local shearing contractor Hilton Barrett, have created a new and innovative shearing shed design to address work efficiency/safety, flow of sheep, animal welfare and quality wool prep. The shed will be open for display on Saturday 27th July from 10am to 2pm. The shed is located north of Dubbo, turn west off the Newell Hwy at Brocklehurst (Burraway Rd) go 2.5km then turn right. More info at awi.com.au/events.

Ag Concepts Fwd Prices as at 5 July, 2019        

Micron

Date

Low

High

21

9-Oct-19

1900

1900

 21 8-Apr-20 1900 1900

Free knitted woollen jumpers for poddy lambs. Call into our office in Dubbo or Macdonald Rural at Brewarrina and take as many as you need. Many colours and styles to choose from!

Main Buyers (This Week)

1

Tianyu Wool

4131

2

Aust. Merino

3734

3

Techwool

3477

4

Fox & Lillie

3280

5

Endeavour Wool

2515

6

Modiano (Aust)

2036

Eastern Market Indicators (AUD cents/kg clean)

1754 cents é 31 cents compared with 05/07/2019

Northern Market Indicators (AUD cents/kg clean)

1780 cents é 31 cent compared with 05/07/2019

   AUD/USD Currency Exchange

0.6966 ê 0.0071 compared with 05/07/2019

5 July 2019

Friday, July 05, 2019

 WEEKLY MARKET REPORT 

Week Ending 5th July, 2019

 AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S52/18

This Week

M52/18

Last Sale

S51/18

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

2133

-

2120

+13

2727n

-594

18

2107

2099

2090

+17

2443

-336

19

2024

2047

2002

+22

2289

-265

20

2009

2037

1984n

+25

2261

-252

28

1030n

1050

1060 (M)

-10 (M)

964

+66

30

-

835

835 (M)

0 (M)

675 (M)

+160 (M)

MC

981

939n

961

+20

1470

-489

FINALLY MARKET LEVELS OUT!!

The new season opened with, well not quite a bang, but a definitely better tone than the past 9 sales when losses totaled 228 cents since early May, just 2 sales adding up to a 71 cent gain and 7 weeks of falls worth 228 cents. On many occasions in this time did we hear that the market had bottomed out but that was not the case until this week. The market was solid on the opening day and strengthened at the end of the series to have all MPGs increase their values by 10 to 25 cents, the EMI up by 8 cents to 1723 as discounts for the inferior types shrunk and lots < 2% VM with the “right specs” were up to 20 cents higher than the indicators.

Skirtings’ fortunes also turned the corner as good style, low VM types added 10/20 cents to their previous values with all other lots fully firm. Cardings also shook off the falling trend to add 20 cents to the MCI as all wools in this sector rose by 10 to 30 cents. Crossbreds were the only sector not to see a price advancement as they couldn’t recover the 10/15 cent loss from the opening day.

A good start to the new season as new-found confidence and a change of sentiment has the market finally finding a level after several false starts in May/June. Plenty of business had been written over the weekend where mills were happy that the market had fallen to a level that allowed far more business to be written than over the past month. The outcomes from the G20 meeting where the Tariff War might be closer to a resolution and the historic meeting in Nth Korea seemed to stem the flow of global economic doom and gloom for now and paint a somewhat brighter picture for the short term.

Another factor for buyers to consider is the volume of wool on offer globally, especially merino wool. This sale had only 31,000 bales rostered, a fall of 13,000 (30%) from the corresponding sale last season and the smallest opening sale for the season since AWEX started in 1995. Final figures for the 2018/19 season are in and total wool tested by weight for the year was down by 11.7% nationally and 19% back in NSW. The average for the EMI was 1909c/kg and $2139/bale. The total volume of wool sold was down by 16% on the previous season, this due to less volume and the pass-in rate doubling from 5 to 10% and total value of the clip sold was $3.174 billion down from $3.424 billion the year earlier. The final sale before the 3 week winter recess has 34,800 bales on offer, hopefully a firm finish.

Ag Concepts Fwd Prices as at 5 July, 2019        

Micron

Date

Low

High

21

23-Oct-19

1900

1900

 21 11-Dec-19 1875 1875

Free knitted woollen jumpers for poddy lambs. Call into our office in Dubbo or Macdonald Rural at Brewarrina and take as many as you need. Many colours and styles to choose from!

Main Buyers (This Week)

1

Techwool

3310

2

Tianyu Wool

3221

3

Aust. Merino

2916

4

PJ Morris Wool

2528

5

Fox & Lillie

2400

6

Endeavour Wool

2270

Eastern Market Indicators (AUD cents/kg clean)

1723 cents é 8 cents compared with 28/06/2019

Northern Market Indicators (AUD cents/kg clean)

1738 cents é 7 cent compared with 28/06/2019

   AUD/USD Currency Exchange

0.7037 é 0.0043 compared with 28/06/2019