WEEKLY MARKET REPORT

Week Ending 19^th September, 2014

AWEX Northern Micron Indices Comparison

CURRENCY FALL NO HELP YET!

The wool market looks to be in a tight price bracket as the benchmark AWEX EMI could only manage a 1 cent rise to 1023. Since the market’s 23 cent recovery in the opening week of September to 1025, we have seen the market move just 3 cents over the past 6 selling days. In the same period the exchange rate has fallen to a 6 month low of 89.74 US cents - a fall of almost 4 cents. One wonders where the market may have been if not for the favourable shift in the $, we may well have seen the EMI fall below the psychological 1000 cent mark.

Looking at the individual microns you would think not much has changed. There was very little movement for 19.5 and finer, either unchanged or in sellers’ favour, this due to the good selection of best top-makers on offer. Conversely, the broader types from 20 to 23 micron averaged a 10 cent fall, again the quality of the selection playing its part as tender and high mid-break lots attracting heavy discounts conspired to see these indicators fall. The volume of these inferior wools is certainly weighing the market down. This can be attributed to the break in the drought in some areas 6 months ago as the sudden change in feed for a lot of sheep put a break in the wool and this occurring exactly half way through the growing season, thus big volumes of tender wool with high mid-breaks are hitting the market at the same time with exporters struggling to place all this “same wool” into orders. This problem will dissipate as we move further into spring shearing as the volume of tender wool may not drop but the position of break will move towards the tip of the staple making it easier to place these types into orders.

Skirtings sold to a similar pattern as the fleece room. The better low VM types edged a little dearer while the lots with cott and colour finished the sale in buyers’ favour. Cardings had an up and down sale as opening day’s losses were made up on Thursday to leave all types unchanged for the week. Crossbreds looked to benefit most from the downward shift in the exchange rate as rises of 10 to 20 cents were commonplace.

Ram sales are in full swing. A few results so far: Kerin Poll, 100% clearance, average $1,978; Gullengamble, average $1,793, up $370 from last year; Roseville Park, 100% clearance, average $2,456; and Calga Dohnes (Coonamble) all sold to average $1,662. Merryville sold 151 rams to average $1,390. Darriwell Stud at Trundle had their average lift by a whopping $550 to average $1,783 for a total clearance. The meat sheep studs are also performing well. Narranmore from Elong Elong averaged $974, up $200 from last year for their poll Dorsets while New Armatree’s Border Leicesters averaged $913 with both studs selling all rams offered.

All delegates are back from last weekend’s conference at Nanjing. Whilst business wasn’t brisk, it was solid, but cautious with concerns about demand levels in Europe still front and centre. It was good to see acknowledgement from the fine-wool processing sector (p11, “The Land”) that all is not good in regards to price levels and quality of wool coming through from non traditional fine-wool growing areas. However premiums are now in place for types meeting the right criteria, a welcome initiative from the Italian spinners and weavers.

Next sale will see volumes similar to this week with Sydney holding a designated Super-fine sale with a keen eye on how these types will perform. We sell on Thursday. Hopefully the favourable exchange will kick things along next week. 

Main Buyers (This Week)