WEEKLY MARKET REPORT

Week Ending 16^th June, 2017

AWEX Northern Micron Indices Comparison 

MEDIUM WOOLS LEAD THE CHARGE!

The lead that the market took last Thursday to see it finally bottom out was a precursor to this week’s market direction. Momentum built as the sale progressed as buyers were cautious, but aggressive, with their purchasing patterns in the opening session to see the competitive tension build even more on Thursday. The AWEX EMI posted double-digit gains on both days to record a 28 cent rise to 1506(1.9%). In US$ terms the jump was just as impressive, 31 cents to 1146, 2.8% a good rises considering  the FRX climbed to well over 76 cents mid-week which can more often than not lead to a price fall. Medium types looked to be back in vogue as they led the price recovery - 23 micron down to 18s gained 35 to 65 cents-some lots achieving a 100 cent jump while finer than 18 managed a 15 cent lift with European types 45 cents to the good. These new levels saw just 2% of fleece passed-in on Thursday.  With 22 micron at 1485 cents clean this looks to be in record territory for that micron as 21s are now well over 1500 cents.

Skirtings had a quieter sale with some types in the 18 micron range around 5% VM cheaper by 5/10 cents on the opening day. Buyers warmed up in the final session to push all types and VM levels around 10 cents dearer by the close, bar the cotty/jowly lots that are still out of favour as discounts increase on a weekly basis. Cardings also looked to mark time as movements in the 3 centres were minimal as Sydney/Fremantle finished in sellers’ favour by up to 10 cents while Melbourne was quoted 5 cents cheaper as a 40 cent gap between the low and high (1176-Melb. to 1207-Frem) now exists. Crossbreds also failed to make any dramatic shifts as most microns made subtle gains of up to 10 cents.

A good week to sell wool as the market recoups some of the losses of the past 4 weeks. Has the dwindling volume, impending 3 week recess in July or the fact that levels have fallen to a point where fresh business could be written (??) be reasons that market sentiment has moved to the positive. The rising A$ certainly hasn’t hindered the market’s rise this sale. When the market started sliding back in May the A$ was 73.50 and fell below 72 cents!! Now the currency is higher yet the market is on the improve. Dare we suggest that FRX rates really don’t play a part when buyers need to buy wool?? The better than expected unemployment rate(the fastest quarterly increase since November, 2004) helped the A$ jump to a 3 month high and the US Fed’s announcement of their interest rate rise soured the US$ globally. Next sale reverts to the 2 East Coast centres operating with just 25,000 bales on offer - should be solid to dearer.     

Ag Concepts Fwd Prices at 16 June 2017

Main Buyers (This Week)