WEEKLY MARKET REPORT

Week Ending 23^rd June, 2017

AWEX Northern Micron Indices Comparison 

HAS THE MARKET PEAKED??

Last week’s recovery continued on this sale as renewed demand, lack of volume and a stable A$ all week ensured buyers were on the front foot with their purchasing patterns. The opening session saw the largest increases (while they looked a bit more selective on the final day) but still pushed the market higher. By week’s end the AWEX EMI added another 27 cents to its value, now 1533. The rise in US$ terms was about half, 12 cents to 1158 this due to the FRX coming back to the mid 75 cent level from last week’s highs of over 76. Once again, the rises were across the board and extended to the “off” types with colour, cott and VM levels that had been somewhat out of favour in previous sales. 20 to 45 cent gains covered 17 to 22 micron with 16.5 and finer just in sellers’ favour as the 17 MPG is now 10 cents higher than 16.5s. Once again, sub 19 micron types with the right specs were extreme as a lot from Goolma and 2 lots from Dunedoo made 100 to 200 cents over their indicators.

Skirtings kept pace with their fleece counterparts this sale as the better style low VM ( < 3%) types posted 40/50 cent rises while the 5% VM and higher 20 cents to the good. Cardings made subtle gains in Sydney, all types in sellers’ favour to have the indicator up by 3 cents to 1184. Melbourne played catch-up in this sector, their MCI up by 21 cents to 1188. Crossbreds also benefitted from increased demand as all types added up to 10 cents.

The size of the Eastern Seaboard only offering certainly played into growers’ hands this week. The smallest merino fleece selection - 11,344 bales - for 8 years with the smallest skirting and carding offering of the season helped the market to clear 95%.The FRX went in favour of overseas buyers by 0.8% but, despite this helping the market, exporters reported a widespread lack of new business being written and virtually no stocktaking at these new levels, as buyers pushing to finish outstanding orders the main driver in the upward trend.

Indent buyers led the initial charge only to be non existent on the final day in Melbourne as fleece prices fell 15/20 cents. Sydney, however, was far stronger to add 15 to 20 cents to their previous levels to bring both centres to closer alignment with each other as all fleece indicators in both centres are within 15 cents (bar 17s and 19 micron, 20 and 30 cents apart). Next week sees all 3 centres selling with 37,000 bales on offer and some talk of purchasing hesitancy as the new season volumes rise sharply when compared to recent sales - the market certain to move one way or the other. 

Ag Concepts Fwd Prices at 23 June 2017

Main Buyers (This Week)