WEEKLY MARKET REPORT

Week Ending 10^th November, 2017

AWEX Northern Micron Indices Comparison

WHERE TO NOW?

The market continued on in the same vein this sale to smash last week’s record level the AWEX EMI up by a whopping 58 cents to 1681 - a rise of 103 cents in the past fortnight- as the FRX looked to be locked in the 76.5 to 77 cent range. This steady rate playing into buyers’ hands as the rise in $US terms was 40 cents to 1293. Increases were across the board, 30 to 50 cents with some of the superior super-fine types up to 150 cents higher. Just 13 bales of fleece were passed-in in Sydney clearing 99.8% (6632) bales as all micron ranges from 16 to 22 are at 5 year highs.

Skirtings kept up with the rises in the fleece room as the burrier/broader types (> 19 micron, > 5%VM) took the limelight with gains of 40 to 60 cents while the finer, lower VM lots could only muster 20 cent increases. It seems that the sky’s the limit for the carding sector as the 3 centres averaged 63 cent gains as the MCI’s range from 1323 to 1377 - all types posted 50 to 60 cent jumps with some LMS up to 100 cents dearer as just 7 bales failed to find a new home selling 99.4%. The MCI has jumped 259 cents (1089 to 1348) since early September. At long last the XB sector was the standout performer giving long suffering growers some much needed good news. Finer microns < 26 were 50 cents higher while > 28s posted 80/90 cent gains 20% for some microns).    

A remarkable market as buyers scrambled to secure volume. The 42,745 bales sold across the country this week grossed $84m or $1965/bale, quite incredible with 98.7% sold. As the market rose rapidly some buyers “slammed the bag” and adapted a wait and see approach and left it up to the “gang of four” to set these new levels buying 60% of the fleece selection and 70% of XBs. Techwool, our largest buyer, topped the list for FLC, SKTs and XBs only to be outdone by Michell in carding sector.

Not only are we asking where will the market pull up, but who will make up the new Board of AWI after next Friday’s AGM.

Don has received much support from within our client base and is very grateful for the confidence shown. Voting closes next Wednesday, so mailed votes really needed to be in the post today. Online voting will close 5pm Wednesday. You have to appoint a proxy holder otherwise your vote will be invalid. All results will be in next week’s report.

Macwool will offer 606 bales next Wednesday.

Ag Concepts Fwd Prices at 10 November 2017

Main Buyers (this week)