WEEKLY MARKET REPORT

Week Ending 15^th August, 2014

AWEX Northern Micron Indices Comparison

MARKET CHANGES COURSE

Volumes were well down on last week’s post-recess opening levels. Fremantle held a one day sale which contributed in pulling back the overall total to 38,690 bales. Despite the smaller volumes and the positive sentiment last week, the market generally closed in negative territory this week. The medium/broader range of 19.5 microns and broader came under the most pressure and fell progressively each day. The closing quotes in this range were around 25 cents clean lower than the preceding sale with the lower spec types tending to lose the most ground. Whilst most of the finer Micron Price Guides also closed lower, the decreases were much smaller than the broader range and were mostly carried lower by the lower spec types. In a positive sign the price differentials are beginning to widen amongst the various types. The more stylish types (best style @ 40nkt and average spinners) were well supported and are now trading at significant premiums to the lower spec types.

In Melbourne the better types continued to advance on the final day on the back of an improved selection - 16.5 microns came under the most attention and the better types were as much as 100 cents dearer than good style/35 nkt types. There were only slight variations in the Merino Skirtings catalogue. As with the fleece sector the better types (best length/low vm) found the most support and were largely unchanged while the short/seedy types tended to lose some ground. Crossbreds followed the rest of the market lower, generally closing 5 cents cheaper for the sale. Merino Cardings also finished in the red - down 5 to 10 cents over the two days.

The solid lift to the selling season we saw in the last two weeks was eroded this week with the market easing generally across the board. This mainly due to a pull back by China and the high volume of tender, high mid break wools in the market place.

The continuing dry is becoming the talking point amongst exporters and all are becoming concerned with how the quantities, styles and yields will be affected if it continues not to rain.

Next week will see a smaller offering again with only 31,803 bales on offer nationally. The vibe here in Yennora at the moment is that the market will be steady at this week’s levels. The sales will be on Tuesday and Wednesday to allow exporters and broker staff to attend wool week in Victoria. We will sell on Tuesday 19^th August with 1074 bales on offer.  

Ag Concepts Fwd Prices at 15 August 2014

Main Buyers (This Week)

Eastern Market Indicators (AUD cents/kg clean)                                    AUD/USD Currency Exchange

1020 cents ê11 cents compared with 8/08/2014                                    0.9300 é 0.0033 compared with 8/08/2014

Northern Market Indicators (AUD cents/kg clean)

1036 cents ê10 cents compared with 8/08/2014