WEEKLY MARKET REPORT

Week Ending 14^th October, 2016

AWEX Northern Micron Indices Comparison

MARKET RAMPS UP AGAIN!

The wool market kept on its upward trajectory this week adding 18 cents to 1318, the largest weekly increase since the opening sale of the season which was the highest point of the season to date with Sale 9, 1320 cents. Finer microns led the charge as 20s and finer rose by 25 to 45 cents as medium types >21 reversed their falling trend to gain 10 to 15 cents pushing 21s above 1400 cents. Lots with the right specs again came under renewed pressure as did lots with a low cvh result of <45, commonly making 50 cents better than similar types with higher cvh readings. In $US terms the gain was 5 cents to 993 as the currency spent most of the week in the mid 75 cent range after a few weeks in the 76s.

Skirtings followed suit as the finer low VM types (typical of this time of the year) came under, at times, extreme pressure as <18 and under 5% VM lifted by 30 /40 cents  to + 50 for the odd lot as all other types sold to sellers’ favour. Cardings continued their recovery with the 3 centres adding 10 to 15 cents to their local MCIs as all types were quoted 5 to 10 cents dearer - now within sight of seasonal peaks in Sale1. Crossbreds couldn’t go with the merino sector as all types bar the 30 micron indicator (+ 10 cents) lost more ground, giving up 5 to 20 cents. Oversupply surely not the issue as XBs haven’t hit their peak offerings, only 11.5% of this week’s catalogue. Wet weather still impacting on shearing and wool receivals but, as fine weather prevails, plenty of catch-up is happening.

Good news for fine-wool growers?? The recovery and gap to the medium microns is well and truly taking shape. 18.5 and finer are 110 to 130 cents higher than end of June. Medium types look to have settled with the gap to finer microns in sync with what most “experts” would like. 19 to 21s have a gap of 160 cents, 20 to 18 micron is 190 cents but 18.5 to 16.5 is only 50 cents - this tightness a worry for the super-fine growers. The 21 micron indicator has spent 9 sales above 1400 cents since July - it’s high of 1492 in Sale 1 and 6 weeks above 1450, just 6% of the last 5 years better than this.

European demand, led by Italy, looked to be the catalyst for the lift in prices as global demand is on the up as some orders were “buy at best” on Thursday. Testing and auction figures are still ahead of last season but low greasy stocks with low global production and a recovering retail sector auger well for sustained and improving prices predicted.

One ram sale to report on at Armatree “Wyuna” sold 40 rams for a top of $5000 to average $1720. Market should be solid to dearer with 36,000 bales on offer next week.

Ag Concepts Fwd Prices at 14 October 2016

Main Buyers (This Week)