WEEKLY MARKET REPORT

Week Ending 14^th April, 2017

AWEX Northern Micron Indices Comparison

GROWERS AND BUYERS LEVEL PEGGING. HAPPY EASTER!

The inkling we got last Thursday that the market may have bottomed out and was in recovery mode, was spot on. Futures trading suggested a dearer market to the tune of 20/30 cents. This was exactly the case and more as the market built momentum as the sale progressed. Two days of solid rises saw the AWEX EMI finish at 1512 cents, a leap of 53 cents for the week, and when converted into $US terms saw a 33 cent jump to 1134 aided by the fall in the exchange rate to below 75 cents. Medium types -19 to 22s- led the charge lifting by 100 to 135 cents to close within reach of their peaks of 4 weeks ago. Sub 19 microns were a bit more subdued than previous sales as <17.5 gained 45/50 cents while 18 to 18.5 were quoted 70 to 80 cents better to have 17 and finer equal to or a touch higher and 17.5 to 19 micron still 30 to 60 cents from those March peaks.

Skirtings took till the final day of selling to add to their previous weeks quotes. By the finish of the sale 18 micron and finer posted 10 to 20 cent gains with the odd “cracker” up to 50 cents higher  while the coarser types, 19 and broader, with heavier VM (>8%) leapt by 30 to 50 cents. Crossbreds also followed the lead of the skirting’s as a quiet opening day led to renewed buyer activity in the final session to see all microns add 5 to 30 cents. The only sector to suffer losses was the cardings, the MCI back by 17 cents to 1159 as all types looked about 20 cents cheaper.

We need to look no further than the past 3 sales to see how sentiment can change so quickly, 2 sales of a market almost in free-fall to a complete reversal in the space of a week. The market fell 87 cents over a 2 week period only to stage a 53 cent rebound. Every-one was confidant of the lift in prices was on the cards, but no-one predicted the extent of the recovery and how quick it happened. 3 to 4 buyers (un-named) drove the price lift led by the largest Chinese indent buyer. The erratic shift in prices is due to 2 major influences, local buyers and exporters know exactly the sentiment of their major clients and transfer demand –or lack of it-instantly into the sale rooms. Also affecting the situation is the hand-to-mouth method of purchasing from the Chinese is the preferred way to acquire wool. This has local exporters exposing themselves to less risk selling promptly so manufacturers avoid the pitfalls of buying too far into the future.  After 14 frantic sales we take a week’s breather to get set for the run to June. Sales recommence on Wednesday 26^th April with a national catalogue of 50,000+ bales, we will on that day with 1400 bales. 

                                                            Ag Concepts Fwd Prices at 7 April 2017

Main Buyers (This Week)