WEEKLY MARKET REPORT

Week Ending 11^th August, 2017

AWEX Northern Micron Indices Comparison 

OFF TO A FLYER!

Wool sales recommenced this week after the annual 3 week winter recess. The large anticipated national offering of 54,000 bales that made the Sydney sale to be held over 3 days (4 years to the week since that has happened) and the climbing FRX to, at one point, a 2 year high over 80 cents had all participants nervous as to where the market might finish by the end of the sale. Signals late last week that the market could be okay were emerging as futures traded up to 20 cents higher than the closing market and the A$ was retreating from its highs of last week. The market opened on a cautious note as exporters looked to see where levels would be set. With buying strategies set the market gained momentum as the sale progressed with all 3 centres posting double digit gains on Wed/Thurs. The AWEX EMI climbed 28 cents to 1550, just 1 cent shy of the level set in late March. In US$ terms the rise was an impressive 48 cents to 1221, this due to the stronger A$. No micron was left out of the rising market as 25 to 55 cent gains were the order of the day bar 18.5 (just a 15 cent lift) but stylish lot finer than this with > 35nkt readings looked 70 to 120 cents higher as a few Chinese orders competed with Italian spinners and weavers. Growers were more than happy with the lift in prices as the clearance rate for fleece wool on the eastern seaboard was 99%.

Skirtings also benefitted from the dearer market. The finer low VM types (< 5%) came under most pressure adding 20 to 40 cents to their quotes with some superior style lots 50 to 100 cents to the good with all other types tending sellers’ favour. The carding sector completely bucked the rising trend of all other sectors to continue its cheaper inclination before the recess. All types in this sector took a hit - LKS back 60 cents while CRS/STN looked 30 to 40 cents cheaper with one of the main carding buyers taking a “wait and see” approach this week as sales in this sector have become extremely hard to book up making the short term outlook a tough one. Good news for the XB sector as renewed interest led to some handy price increases, this despite the article in last week’s “The Land” forecasting more subdued demand through till Christmas. Finer types < 26 micron and 32s added 5 to 10 cents while probably the most pleasing aspect of the rising market was 28 to 30 micron averaging a 50 cent jump.

A great (and to a degree) a somewhat surprisingly good start to sales. After a typically tentative start orders came flooding in from overseas users at full market rates to have an immediate effect on the market as any outstanding orders were filled and buyers began in earnest to secure quantity for the new business that had been written. Also helping the market is the improved quality of the offering, more FNF fleece types with higher strength and lower dust content than in the autumn. Next sale has the national selection back to 38,000 - 14,000 bales less than this week with most experts talking a very strong market.

Ag Concepts Fwd Prices at 11 August 2017

Main Buyers (This Week)