WEEKLY MARKET REPORT

Week Ending 18^th August, 2017

AWEX Northern Micron Indices Comparison 

RED HOT MARKET – RECORDS BROKEN!!

The experts were spot on with their predicted strong market as last sale’s rising prices were just a precursor to what was to unfold this week. The market roared into action on the opening day as the EMI had its largest daily gain (46 cents) for over 2 years. The 2^nd day saw more rises, somewhat subdued when compared to the previous day but still double digit lifts. By week’s end the EMI had forged ahead by 64 cents to break through the 1600 cent barrier (1614) - a new record since reports began being published dating back to the mid/late 1970s. The rise was just as impressive in US$ terms, up by 60 cents to 1281, this on the back of a wildly fluctuating A$ (78.15 to 79.60 cents). All types across all microns were caught up in the buying frenzy. 18s and finer posted 45 to 55 cent jumps with some of the spinners and best top making style lots < 18.5 up to 150 cents to the good. 18.5 to 23s added 70 to 95 cents as 22 and 23 micron are now at all time record levels (1603 and 1565) with 21s just 14 cents shy of their May 1988 record of 1682. Of the 24,300 bales of fleece offered nationally 99.1% were sold just 0.9% (220 bales) were passed-in.

Skirtings were also caught up in the “panic buying” patterns with meteoric gains to say the least. Most types and descriptions across all microns and VM levels (bar very heavy cott/colour) added 80 to 140 cents with a clearance rate of 98.1%. Crossbreds also benefitted from the aggressive buying patterns in the merino sector. 50 to 85 cent gains were the order of the day as 28 to 30 micron now adding 125 cents to their quotes in 2 weeks.  It was only back in June that most of the talk was of this sector being very sluggish till at least Christmas - a great turn around!! Cardings looked to be left out of the upward lift in prices as most types posted modest gains of up to 10/15 cents.

Another great week to be selling wool as several records were broken and demand definitely outstripped supply. Quite a few large forward orders had to be filled from some of the bigger Chinese mills and it looked as though no-one was arguing over price as bidding was, at times, frantic with price ideas determined only when the hammer fell!! Several mills were looking to get set for delivery months 2 to 3 months in advance, unlike the past few years where buying was “hand to mouth” - buy, ship and process - as quickly as possible now to forward buying. This old (but new) tactic could prove to be an astute and opportune change of direction as the swing in FRX over the past 6 weeks has gone against all expert forecasts.

Don’t forget the National Ram show and sales here in Dubbo next week, Tuesday to Thursday. The installation of our new core machine is under way and hoping to test wool by late next week. Next week has just the 2 east coast centres selling 36,000 bales as market direction is anyone’s guess!!

Ag Concepts Fwd Prices at 18 August 2017

Main Buyers (This Week)