WEEKLY MARKET REPORT

Week Ending 14^th November, 2014

AWEX Northern Micron Indices Comparison

CONSOLIDATION …. TIME TO THINK OF FUTURES

The large forecast sale of 49,000 bales didn’t eventuate as 45,000 were offered (7% withdrawn) and on the back of a stronger market only 6.5% passed in. The currency fall to 85.5 cents a few weeks ago was the catalyst to book up plenty of wool and buyers certainly kept chasing all types and microns this sale following on from the previous week. The only thing that may have dampened the progress of the market would be a rebound in the exchange rate as one prominent exporter said “the good types might hold and the off types back maybe 10 cents.” This certainly looked to be the case as sales opened on a softer note on Tuesday in Melbourne by up to 5 cents as the A$ rebounded up to 86.9 cents. Despite the strengthening currency the market turned around later in the week to have 18.5 to 23s 10 - 25 cents higher. Finer types had a mixed sale as 17 and 18s only 5 dearer with 16.5 and 17.5s back by the same margin. The EMI posted an 8 cent rise, now 1050, with a rise of 19 cents to 913 in US terms.

Good premiums still exist for types with the right specs. A fine, FNF sound clip from Bathurst sold for 50 to 140 cents higher than their indicators and lots from Trangie with 6 to 8% only discounted 40 cents from a FNF type (those types normally 80 to 100 cents back).

Most of the rises looked to be confined to the fleece room as skirtings again had a quiet sale. There was one subtle change as 17s and finer (up to 5% VM) ended the sale in buyers’ favour with all other types and descriptions fully firm over the course of the week. The gap between the various microns and VM levels in skirtings is as close as their fleece counterparts - only 100 cents between 18 micron with 4% VM and 19 micron carrying 20% VM. Cardings had a mixed sale as a 3 cent fall in Sydney was negated by rises of up to 5 cents in the other centres, Fremantle’s MCI now at 797. Crossbreds continued to strengthen, up another 5 to 15 cents. 28 microns are at a 3 year high -698- and only need to add 35 cents to be at a 12 year peak.

With the market on the rise, a closer look at forward prices would be wise as prices edge towards 1200 cents, this being an historically high level for 21s. As the above table illustrates, we only have 30 odd cents to go before we hit 1200. We would advise clients to place orders for those who wish to get set, rather than the ‘wait and see’ approach and risk missing out on a peak price. Ring your rep for any further info.

Ram sales are done and dusted in this area for now with focus now in the Southern parts of the state. On the whole most studs have reported clearances well in the 90 to 100% sold and average commonly $200 to $400 higher than last year. Some more results worth mentioning: Wyuna at Armatree $1100 average; Bella Lana form Wellington a $1350 average (up $280 from last year); Allendale, also from Wellington, an increase of $170 from last year to average $1550; and Grogansworth from Bowning an average of $1735. Next week will see the largest national catalogue for 10 months (50,200 bales) but no signs of nerves from the exporters as the market was solid through to the final lot yesterday and the A$ at 86.10 US cents this morning. We sell last on Thursday with 925 bales on offer.                                      

Ag Concepts Fwd Prices at 14 November

Main Buyers (This Week)