WEEKLY MARKET REPORT

Week Ending 1^st September, 2017

AWEX Northern Micron Indices Comparison 

NEW CORE MACHINE UP AND RUNNING!

The market had a topsy-turvy series as the market looked to split into 2 as 18.5 and broader struggled to find a level and finer than this micron benefitted from renewed competition as a superior selection was on offer in Sydney. By week’s end the EMI had lost just 14 cents (0.9%) to 1558 after giving up 23 cents on the opening day - the high A$ at 79.7 on Wednesday not helping - only to claw back 9 cents in the final session. The move was also minute in US$ terms, -9 cents to 1231.  The excellent array of super-fine types saw these < 18 micron post solid gains of 15 to 50 cents and up to 200 cents for selected “spinner and superior” style lots and some even commanding a 300/400 cent premium. Broader microns opened the sale (30/50 cheaper) but did recover to finish the week 20/40 back with lots containing colour/cott, high mid-breaks and high VM discounted 50 to 80 cents.

Skirtings followed a similar pattern to the fleece room - a tough opening day to recover by week’s end. Types containing < 5% VM testing finer than 18 micron were par to 100 cents dearer for the odd cracking lot depending on style and VM. We had BKN from Mudgee make 1410 cents while BLS from the same grower fetched 1173 - incredible money. 19 micron and broader with higher burr content with cott/colour were quoted 30/50 cents cheaper. Cardings again struggled to find a level as all types in this sector fell around 15 cents. Crossbreds were also on the receiving end of the initial negative tone losing 15 to 35 cents before stabilising on Thursday, this sector having the highest pass-in rate of 18%.

The market has certainly made a hasty retreat from its high point of 2 weeks ago (1614 to 1549 on Wednesday) a 65 cent fall over 3 selling days. This, however, was not as rapid as the preceding rises of the previous fortnight - a 92 cent lift from 1522 to 1614. Corrections can be swift either up or down as the past 4 sales have seen but maybe a new level has been set. Buyers did report business being written at the end of last week but at what price is still up for debate. The sluggish start down to a “new level” did lead to wool being booked up on Wednesday night in China, India and Italy, thus the renewed activity on Thursday that transferred into an improving market. The competition was intense on these better style types as the Chinese pushed the Italians on virtually every lot but Italy prevailed to buy almost all of the selection. Buying patterns from all processors is generally strong as all and sundry are keen to fill their supply chains while better wools hit the market but much will depend on consumer attitude at the retail end as to whether the market can be sustained at these prices.

After a 2 week instillation of our new core machine we started testing on Tuesday. All seems to be running well with the odd teething problem as we had to forgo next week’s sale (S10) but back on track for Sale 11, Thursday 14^th, September.

Ag Concepts Fwd Prices at 1 September 2017

Main Buyers (This Week)