WEEKLY MARKET REPORT

Week Ending 13^th November, 2015

 AWEX Northern Micron Indices Comparison

QUALITY IS REWARDED!

The roller coaster ride the market has been experiencing kept going this sale but re-bounded (contrary to our prediction) to regain most of last week’s losses. By the last lot sold the benchmark EMI had added 17 cents to 1251 cancelling out last sale’s 16 cent fall. In US terms the rise equated to 11 cents (894) this due to the AU$ spending most of the week around the low 70 cent mark. All and sundry were on tender hooks with this sale’s anticipated 50,000+ bale selection and the market losing ground last week after the previous fortnight’s 80 cent rise. Sentiment changed, however, as futures looked about 30 cents dearer late on Thursday and the fall in the exchange rate to 70 cents late on Friday following good employment figures from the US (270,000 jobs created in October - 90,000 more than most experts predicted) sent the US$ soaring and all other currencies falling.

Despite the largest catalogue in seven months all signals pointed to a market recovery. No-one told Melbourne as their biggest sale since January started on a sour note on Tuesday as fleece wools were up to 15 cents cheaper. As all 3 centres sold on Wednesday the market had turned to be peaking on the final day. Most microns posted gains of 20 to 30 cents for 17.5 and broader. The finer types looked to be steadier as the indicators added 5 to 15 cents. All types were in keen demand as plenty of lots made over and above the indicator price. A non-mulesed, fine, FNF clip from Coolah with ideal length, strength and low mid-breaks had prices higher by 100 cents clean as other lots with up to 3% VM and low nkts making up to 60 cents higher than their indicators.

Skirtings also benefitted form the renewed interest from buyers. Across all types and descriptions the gains were in the 30 cent range with the odd longer and better style lots up to 50 cents higher. 2 lots of BKN from Wellington and Yeoval made over 800 cents while a 17 micron, 3% VM BKN made 939 cents from Coolah - great money! Cardings had a quieter sale but still edged ahead. All types in this sector gained 5 to 10 cents. Short LMS wool is making from 700 to 950 cents for 40 to 60mm long types. Crossbreds also couldn’t keep pace with the merino sector, increases restricted to the 5 to 15 cent range. Room 2 types remain in great demand. Prices are very good for all types regardless of micron, style or VM as growers readily accept these levels - 98% sold in Sydney this sale.

There were some interesting letters to the editor in “The Land” in yesterday’s and last week’s publication. Laurence Modiano, a major wool-buyer based in London, states that if mulesing sheep then pain relief should be mandatory as many orders now require non-mulesed wool or pain relief wool. The next letter from a Max Price at Pyramul in reply to an earlier letter from Mr. Modiano (October 22^nd) advises him to stick to his business and not understanding what mulesing is all about and not paying enough for wool. The example of the above-mentioned clip from Coolah is spot-on - if everything is right with the wool, premiums will be paid accordingly. These 44 bales of fleece and BKN averaged $2100/bale, 1163c/kg for 181kg/bale, a great result for 17.5 micron. Don also has weighed in on the debate in this week’s edition as poor uptake on NWD declarations is not giving all the critical information that the buyers need to enable them to be in a position to pay more for your wool. Next week’s market should be solid to dearer!!

Main Buyers (This Week)