WEEKLY MARKET REPORT

Week Ending 20^th January, 2017

AWEX Northern Micron Indices Comparison

TWO MARKETS IN ONE!

A vastly different market greeted growers this sale when compared to last week’s auction. When looking at the AWEX weekly report, a rise of 12 cents for the EMI to 1434 (a new record since AWEX took on market reporting way back in 1993) looks to be good but it was a market going in two different directions.

Again, it was the finer microns leading the way with <18.5 microns 55 to 85 cents higher despite a 5 to 25 cent fall on the final auction day. The 19 to 19.5s lifted by 10 to 30 cents but that’s where the good news ended as 20s and broader gave up 5 to 20 cents from last weeks  high.  The ever-increasing volume of higher VM took its toll as these fleece types (above 4% VM-19 micron and broader) were 50 to 100 cents cheaper than last week.

Skirtings looked to be the best performing sector of all. Buyers focused on the sub 18 microns, best style <5% VM pushing these up by 20 cents for 18s to 70/110 cents for 17 and finer. One particular clip from Orange averaged $1885/bale for skirtings and cardings (including dags) incredible money!! Cardings also held their nerve as finer than 18 micron across all types were quoted up to 10 cents dearer while broader lots looked fully firm. To highlight this, a burry clip from Tilpa saw its locks make 699 whilst its top fleece price was only 50 cents higher! This example of LKS/CRS being 2^nd top price in burry clips will not be too uncommon.

Crossbreds had a mixed sale as a final day recovery saw 25 and 28 micron in the sellers’ favour as all other microns lost 5 to 40 cents with some carding and carbo types (above 15% VM) virtually unwanted as the pain could drag on in this sector for a while

Whilst the headlines in The Land herald record wool prices, and recent gains are certainly welcome, general prices are not in record territory. Whilst we have to go back a long way, fine wool prices have certainly been a lot higher several times over the last 30 years. What we do see happening as the seasonal conditions from last winter onwards convert to greasy wool, a gradual increase in micron and much more vegetable matter in fresh shorn wool. As yet the bulk of the VM has been trefoil but seed and shive will really test the strength of the market. The two halves we saw this week coincided with the increase in burry broader merino types. Put simply, fine and free should continue unabated whilst broad and burry may have hit some resistance. Discounts for the higher VM lines (up around 8-10%) opened out to close to 200 cents clean this week. None of these types are included in the market report micron indices.  So whilst they can crow about a record indicator level, they are not reporting a fair chunk of the wool sold!  Next week just over 47,000 bales down from 56,000 bales should help. We sell Tuesday with 800 bales.

Ag Concepts Fwd Prices at 20 January 2017

Main Buyers (This Week)