WEEKLY MARKET REPORT

Week Ending 19^th August, 2016

AWEX Northern Micron Indices Comparison

MARKET EDGES HIGHER AS VOLUMES DIMINISH!

Skirtings couldn’t keep pace with their fleece counterparts as all types across the full micron and VM spectrum were being quoted 10 to 20 cents cheaper. Crossbred looked to be the best performing sector of the sale as most microns added 15 to 25 cents with the outstanding performer being 32 microns in Melbourne, up a whopping 59 cents!! Cardings clawed back some of last week’s losses after a final day rally of up to 10 cents for most types.

Out of the sale room there was plenty of chatter regarding one of the largest wool buyers and Landmark. A report in last Wednesday’s Financial Review had Lempriere Australia in due diligence to buy Landmark for $1.2 billion from its US based parent company Agrium.  Lempriere is a 5^th generation wool buying Co. with its origins dating back to the late 1800s in France but forged a partnership with Chinese textile giant Shandong RuYi in 2012 following the purchase of Cubbie Station at Dirranbandi for $240 m. Both parties declined to comment on the speculation. Landmark’s revenue to last December was $2.3 billion, 3^rd only to Graincorp and Nufarm for agricultural companies in Australia. Ruralco was also mentioned as a possible contender for the retail business of Landmark.

Still with Landmark, but is fact, is their purchase of rival Victorian woolbroker, Arcadian Wool. It has secured the remaining 50% of the business after founding the company in 1985 with an original 40% that was built up to 47% by 2013.  This now gives Landmark 19% of the wool sold through Melbourne, some 160,000 bales/year. With just the 2 Eastern seaboard centres in action next week, with only 31,000 bales on offer, anything less than a firm market would be akin to Michael Phelps drowning!!  

Ag Concepts Fwd Prices at 19 August 2016

Main Buyers (This Week)