Weekly Market Reports


Weekly Market Report 06.03.2015

admin Macwool - Friday, March 06, 2015

WEEKLY MARKET REPORT

Week Ending 5th March, 2015

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S36/14

This Week

M36/14

Last Sale

S35/14

Sydney

Change

Last Year

Sydney

Sydney Yearly

Change

17

1330

1316

1346

-16

1442

-112

18

1290

1299

1300

-10

1369

-79

19

1194

1196

1202

-8

1318

-120

20

1159

1157

1165

-6

1255

-96

21

1158

1152

1163

-5

1237

-79

22

1152

1151

1159

-7

1220

-68

26

904

888

899

+5

823

+81

28

816

802

820

-4

637

+179

30

778

30

785

-7

605

+173

MC

909

923

915

-6

748

+161

MARKET MARKS TIME AGAIN!!!!

For the 4th sale in a row the market lost ground, albeit by the smallest of margins, 3 cents to 1085 on the AWEX EMI. The stability of the market can be seen with a look at the past 9 sale days going back to 12th February, just a 7 cent movement from 1092 to 1085. Over this period of time the exchange rate has also resisted any fluctuation, remaining almost exclusively above 78 cents with the odd fall into the high 77’s as is the level this morning.  In US terms we are now back under 850 cents, which according to some exporters could be a trigger point to initiate business. Quantity should not be a concern, as the past fortnight and the 4 remaining sales leading into Easter should average around 45k.

As mentioned earlier, price direction was down with 18.5 and finer giving up 10 to 15 cents. The medium types were less affected with losses around the 5 cent mark recorded. The market was some-what erratic as lower spec types outperformed the more stylish lots early in the sale to close the price gap. By the end of the week some semblance of order was restored as the inferior types were discounted heavily and still the odd lot with the right specs up to 30 cents higher than their indicators.

Room 2 also failed to ignite any major activity from the exporters. Skirting’s found any real price direction hard to come by as finer micron low VM types sold to previous levels where 19 and broader and high VM lots across all categories lost 10 to 15 cents. We have noticed over the past few sales an increase in seedy edges, jowls and cot in some “bkn” lines. These are being discounted heavily by the trade to the point where larger volumes of these in the next few weeks will result in some “token bids” from buyers.  Carding’s lost some of their recent gloss, but still remains at record levels. Locks were back 10 to 15 cents while stains and crutching’s were quoted 5 to 10 cents easier.  Crossbreds had a mixed sale as the fine and broad microns (26 and 32s) finished in sellers favour with the middle types from 28 to 30 looked to be in buyers favour. Growers weren’t too fussed either way as just 40 bales were passed-in in Sydney clearing over 98% of the crossbred sector.

Another quiet week for the wool industry as exporters are under no pressure to step in and buy. The main sticking point to a market rising is financial restraints. Some mills are reporting their finances stretched to the limit waiting upon some execution of L/C’s (letters of credit). The rate of enquiry from China is slower than usual since Chinese New Year.  More volatility in exchange rate movements may happen due to the rising inflation rate in the US as the next move in interest rates  will certainly be higher. Consumption of clothing is at a 12 month high in the US, the emphasis on the knitwear sector which is reflected in the sale-room prices for skirting’s, oddments, carding’s and crossbreds. Europe however is still on a knifes-edge as uncertainty over Greece’s ability to repay debt hangs like a dark cloud over the whole continent. Despite the fact that German consumer sentiment is at a 13 year high the rest of the EU is plagued with uncertainty. There are high volumes of wool in the “pipe-line” forcing a slow-down in orders from fabric makers on the continent, thus subdued demand from buyers that ship wool to Europe for processing. Good news out of China is the government is aiming for a growth rate in the economy to average 6.5% for the next 15 to 20 years. The EU would be happy if they could achieve half of that!! We sell early on Wednesday with 600 bales on offer and no real surprises in the market for the for-seeable future.

                    Main Buyers (This Week)

1

Techwool

4970

2

Fox and Lillie

4484

3

Chinatex

4310

4

Tianyu

2174

5

Leimpiere

2161

6

P J Morris

2160

7

Australian Merino

1885

8

Kathaytex

1832

9

Modiano

1445

Eastern Market Indicators (AUD cents/kg clean)

1085 cents ê 3 cents compared with 26/02/2015

AUD/USD Currency Exchange

0.7823 â 0.0036 compared with 26/02/2015

Northern Market Indicators (AUD cents/kg clean)

1105 cents ê 6 cents compared with 26/02/2015

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