WEEKLY MARKET REPORT

Week Ending 21^st October, 2016

AWEX Northern Micron Indices Comparison

MARKET CLOSES IN ON YEARLY HIGHS!

The wool market kept going on its positive way to extend rises to an 8 day (4 week) stretch, to have the EMI now at 1331, outdoing the Sale 1 peak of 1320. A quick look back at market peaks has us in rarefied air at this level. There has only been 2 sales (early June 2015) when the EMI has been higher and from then until July this year only 1 week in August, 2015, above 1300 cents. Since July the EMI has been above 1300 cents for 9 sales setting somewhat of a new platform. Indicators <19.5 are at highs not seen for years while 20 and broader are at levels not far off their highs earlier in the season.  The medium types, >20 micron, led the charge this week albeit at a slower pace than last sale, adding 10 to 20 cents. Superfine growers may have been a little disappointed at the outcome as <19 could only manage 5 to 10 cent gains; oddly enough 30 to 40 cent rises for lower types but, if lots had the right specs, premiums were 20 to 60 cents to the good even out to 19 micron and over 2% VM with “spinners” style lots 150/200 above the indicator.

Skirtings weren’t to be denied as the designated superfine sale offered cracking lots for exporters. Fine micron types, <18 and below 5%VM, were keenly sought after most posting 30/40 cent gains with some selected lots +50 to 80 cents as all other types looked 10 to 20 cents dearer. Tight supplies of cardings and LMS also found favour with buyers as LKS jumped 25 to 50 cents with CRS and STN 15 to 25 cents better with washing LMS extreme. All 3 centres’ MCIs are closing in on the 1100 cent mark to be at this season’s peak. Crossbreds continue to buck the rising trend of the merino sector suffering from the exchange rate and over-supply of >30 micron types, 25s and 32 micron remained unchanged while 26 to 30s lost 5 to 10 cents.

Despite the major shift in exchange rates all buyers were keen to secure wool to reinforce an increase in demand. The 28 cent rise in $US terms to 1021 was its biggest rise for some time. The rising $ did impact on some European orders for some types but the re-emergence of one Chinese indent buyer after a few sales on the sidelines pushed the medium microns up. The next 2 sales have offerings averaging 45,000 - the past 2 dry weeks allowing receivals to catch up but should not hinder the market’s consolidation as plenty of sales were negotiated last night as the AU$ comes off its 7 month highs of 77.85 to 76.25 this morning. One ram sale to note; “Grogansworth” at Yass sold 90 rams to a top of $5250 to average $1720, most ram sales in this area now wound up.

Ag Concepts Fwd Prices at 21 October 2016

Main Buyers (This Week)