WEEKLY MARKET REPORT

Week Ending 22^nd June, 2018

AWEX Northern Micron Indices Comparison

MARKET CONTINUES TO SURGE!

Once again the Australian wool market has headed into new territory - uncharted and unpredicted.

As Fremantle took another rest Sydney and Melbourne could only pull together and supply just under 21,000 bales this week to the auction; the smallest offering in 9 years. This, along with the Aussie dollar were the two main reasons for this weeks increase.

This market, the second last of 2017/2018 selling season finished in an extremely strong and positive position.

The EMI has risen by 52 to sit at 2073. The buyers flew out of the blocks on Wednesday, the EMI gained 42 firming up with another positive 10 on Thursday. The Australian dollar had a big impact as it dropped 2 cents compared to the previous week to sit comfortably between 0.736 and 0.739 over the two selling days.

Lack of supply was a big factor again this week, especially wools between 18 to 22 micron, which ended with an average increase of 80 cents. On the finer and ultra-fine end, 17.5 micron and below did not have as much of an increase due to a mixed quality section, still gaining a minimum of 13 cents. Crossbreds pushed ahead, the 26 to 28 microns especially into record territory averaging a 30 cent increase.

Merino cardings gained a solid 20 to 30 cents, seeing Melbourne step back over the 1500 mark to 1513, and Sydney sitting just 5 away at 1495.

Unfortunately, as most areas still wait for rain, sheep numbers keep pouring through the saleyards. Could 21 to 25 thousand bales a week be the national average in 6 months time and into the next couple of years?

As buyers scramble to find wool to keep their mills running overseas and with talk of new mills opening in China, who knows where the value of our quality product could peak?

Either way the wool market looks positive for the Australian wool grower.

Next week with Freemantle back online the three centres will be offering just over 33,000 bales.

Macdonald and Company Wool Brokers will be offering just over 900 bales on Wednesday the 27^th June.

Looking forward to it. Will the EMI hit 2100? 

Ag Concepts Fwd Prices as at 22nd June, 2018

Main Buyers (this week)