WEEKLY MARKET REPORT

Week Ending 18^th December, 2015

AWEX Northern Micron Indices Comparison

 MERRY CHRISTMAS & A HAPPY NEW YEAR!

Wool sales certainly did wind up on a positive note as the benchmark AWEX EMI posted a 14 cent rise to finish the year at 1265 cents (a record for end of year levels) 206 cents (19.5%) higher than 12 months ago. In US terms the market lost 5 cents to 908, just 24 cents better than a year ago. It was a strong start to the session as buyers were keen to secure wool for outstanding commitments before the 3 week recess. The pace simmered on the final day so much so that Melbourne was slightly cheaper. By week’s end gains were pretty uniform across all micron categories, 10 to 20 cents. The better types added more than these gains as they become scarcer as the season produces more wool with higher VM levels, with the “off types” closing the price gap on their more fancied counterparts - in some cases virtually no discount for colour, cott or burr.

Skirtings followed the lead of the fleece room as the < 3% VM types added 10 cents while the burrier - 5 to 10% VM - lots climbed 25 to 30 cents. A good result considering the increasing volume of these types. Cardings recovered last sale’s falls, all types in this sector 10 to 15 cents to the good as all 3 MCIs are back over 1100 cents, great levels for these types.  Crossbreds had a mixed sale as the largest volume in 12 months told on the market, 10,916 bales on offer representing over 32% of the Eastern Seaboard catalogue. Fine and broad microns were flat with the 28 to 30 micron range up by 15 cents. 

Currency fluctuations again played their part. The $AU versus the $US was in our favour by 1.5%. Most interest came from China with good support from India. An influx of L/Cs (letters of credit) over the past 3 weeks has certainly helped in filling buyers’ coffers for purchasing but nearly too late to really change their buying strategies. It finally happened! The US Federal Reserve lifted its cash rate from zero to 0.25%, the first move in 7 years. Commodities rallied as the $US rose against all global currencies on the news but subdued economic growth outside of China and, to a certain extent, the USA will be closely watched in the new year as the worsening commodity prices will weigh heavily on global economic growth and, in turn, influence exchange rates. Merry Christmas and a happy New Year to all. Wool sales recommence on Wednesday, 13^th January. Let’s hope all the rivers are well and truly running by then!!

Ag Concepts Fwd Prices at 11 December, 2015

Main Buyers (This Week)