WEEKLY MARKET REPORT

Week Ending 18^th November, 2016

AWEX Northern Micron Indices Comparison

MARKET RECOVERS MOST LOSSES OF PAST TWO WEEKS

Last Thursday’s turn around in the market flowed through to this week’s sale as solid gains were made over the course of the sale. The benchmark AWEX EMI climbed back over the 1300 cent mark to 1314 - a 24 cent rise. In US$ terms it was a slight reversal of 6 cents to 983, this due to the exchange rate falling to below 74.50 on Thursday. All types across all microns benefitted from the renewed competitive tension in the sale rooms. Finer indicators led the charge, <20 micron up by 25 to 40 cents with 21s and broader 20 cents to the good. Once again lots with the right specs were keenly sought after with premiums up to 100 cents higher than the indicators even with >2.5% VM, colour and mixed length. Our best catalogue in months resulted in 91% (94 lots) of our fleece making over 1000 cents, just 12 lots below that.

The skirting sector faired the best of any sector. Solid gains over both selling days saw all types regardless of VM, style or micron jumping 50 to 80 cents. We sold 16 lots of “BKN” that made over 1000 cents - fantastic money!!  Cardings also shook off last sale’s falls, all 3 MCIs back above 1100 cents as all types posted 5 to 15 cent gains. Crossbreds had a mixed sale. The misery continued on for the finer types (<28 losing 5 to 10 cents) while 30s and broader stopped the rot for the moment adding 5 to 15 cents. The eastern seaboard offering was 26% crossbred, 11% passed-in.    

A stunning about-face for the market. The 3 weeks of 50,000 bales didn’t eventuate as the offerings dropped back to identical volumes of 47,000. The lower than anticipated catalogues and favourable exchange rates (<2.4%) certainly helped as did reports of practically zero stocks of greasy merino wool globally. The lift in the market saw just 66 bales of FLC and 44 bales of SKTS passed-in in Sydney. Futures trading ramped up and lock-in prices for Jan/Feb are 1405, 25 cents higher than the physical price indicating a very ‘solid to dearer’ market next week.

The AGM  for AWI was held this morning  with confirmation that following a 2 phase, 2 year program of consultation, review and discussion of the wool selling system, the Wool Exchange Portal Working Group has reported back to the board that the decision to pursue its establishment was a clear ‘yes” vote unanimously. The working group will report back to the board by April, 2017, on costings, timing and a business case model for funding approval.

Ag Concepts Fwd Prices at 18 November 2016

Main Buyers (This Week)