WEEKLY MARKET REPORT

Week Ending 15th June, 2018

AWEX Northern Micron Indices Comparison

WOOL MARKET PEAKED – NO !

It seemed last week that our market had peaked, but spurred along by insistent demand from China and curbed supply from how sheep numbers of Australia’s Woolgrowers are again feeling the benefits of the resurgence in wool.

This week’s market finished in a positive territory after loosing ground last week. The EMI rose by 10c to 2021c. The main push was in the 19.5-22.5 microns which rose by 10 to 40c while 18.5 micron and finer had falls of 5 to 30c. Interesting to hear a comment made to me by an exporter this week that the market we now have is driven by demand from mills and not by our short supply, the key driver of course is China who import close to 80% of our clip.

The skirting sector was similar to the fleece in that 19 micron and finer lost ground by 20 to 40c, lots with 4% vegetable matter and greater were most affected. The broader types rose by 10 to 20c.

Carding wools rose by 4c for the week and Crossbreds improved with mixed results. 27 micron improved while 28 to 30 micron eased slightly. Crossbred lambs wool was again sought after by the trade.

This week saw $58.45 million spent on wool purchases and so far this season we have seen a $3.32b spent, which is a far cry from 1998 when prices hit a low average of $5.10/kg, which was well below cost of production.

We have been hearing from the exporting trade that certain Chinese mills are wanting more wool that is 110-115mm long, because they cannot get enough due to the fact that many wool producers shore early to cash in on the market and some are shearing at 6 and 8 months. These longer wools are used in the worsted section with their end use being apparel or fabric. Most of the combing wools we see on the show floor now are measuring 60-90mm.

So next week we see only Sydney and Melbourne selling with approximately 21,326 bales on offer – the smallest offering of the year. Macdonald and Co will, on Thursday the 21^st June offer 1688 bales.

Can we maintain these levels or go higher? Stay tuned.

Ag Concepts Fwd Prices as at 15th June, 2018

Main Buyers (this week)