WEEKLY MARKET REPORT

Week Ending 1^st May, 2015

 AWEX Northern Micron Indices Comparison

 MARKET DEFIES DOLLAR AND US PROBLEMS

For the third sale in a row we saw the market on (what some might describe) a “bull-run” as the three centres recorded good rises ranging from 16 to 22 cents. The EMI rose 19 cents to 1172 (a 3 year peak) as the northern indicator is now at 1199. In US terms the rises have been more pronounced. This week a 43 cent jump to 937, due to the falling US $ and most other global currencies strengthening against it.

It was a somewhat strange week as most pundits thought the market would settle with no real movement either way and, in fact, the outlook did worsen as the sudden shift in exchange rates gave the perfect opportunity for the Chinese to force the market down. Everyone was caught on the hop when news from the US on Monday night painted a not so pretty picture. Economic growth had virtually stalled in the 1^st quarter of the year due to a number of reasons. The record breaking blizzard conditions on the eastern seaboard for the 3^rd consecutive winter had hampered consumer spending with the bulk of the population staying indoors – where are all the tree hugging, climate change, global warmers now!!! The ports dispute on the west coast that delayed exports leaving LA, San Francisco and Seattle and the big US oil companies slow-down of investments due to oil prices remaining low all hampered economic growth. Despite 200,000 jobs being created each month, this has not helped as a majority of these are part-time positions but the unemployment rate is down to 5%. Despite the A$ 2.6 cent jump to above 80 cents (the highest level since January), the market made steady gains early in the sale to have a final day surge to see all fleece indicators climb 15 to 30 cents, bar 22s - up by 10 cents. Again nothing was neglected and good spec types commanded good premiums with one 18.5 lot from Goolma 100 cents better than the indicator.

Skirtings had a great sale as a cautious start to the week (+ 10 cents) exploded to life on the final day as all descriptions and microns leapt by 40 to 50 cents with most emphasis on <3% VM. Crossbreds were the only sector to suffer from the higher A$, the 28 and 32s in buyers’ favour and 30 micron 10 cents cheaper with the finer types <26 micron posting gains of up to 20 cents. Cardings again rewrote the record books as the MCI broke through the 1000 cent mark for the first time in Melbourne, 1008, with Sydney set to join it soon but, for the moment, 994 cents. All types increased in value by 10 to 20 cents. In local A$ terms the MCIs have been in record territory since January but still 100 cents lower in US terms than mid 2011 - the MCI was 830 and the A$ 105 US cents. One surprising aspect is the large volume of withdrawn wool, 900 bales in Sydney, 8% of the selection. Next week will see 43,000 bales on offer. Hard to see when the brakes will be put on the rising market.

 Ag Concepts Fwd Prices at 1 May 

Main Buyers (This Week)