WEEKLY MARKET REPORT

Week Ending 23^rd October, 2015

 AWEX Northern Micron Indices Comparison

AT LAST, SOME GOOD NEWS!!

The market performed a backflip this sale with a good recovery putting our prediction of another flat or poor week to bed. All commodities, including wool, fluctuate in price - they never keep falling or rising. We were confident that the market would recover and WHEN, not IF, was the thing no-one could pin point. After dropping nearly 100 cents over the past 5 weeks the EMI recovered more than 3% adding 36 cents to break through the 1200 cent barrier, now 1205. Signs were good early in the week as the NZ offering looked to be more keenly sought after, even if the Kiwis passed-in 31%. Momentum kept building through the sale with Thursday having the biggest increases. At the final lot rises across most microns (17 to 23s) were 35 to 57 cents to the good with 16.5 gaining 24 cents. Specialist types in the superfine range continue to command significant price premiums (100+ cents) over their lower quality counterparts although these also recovered some much lost value this sale.

Room 2 types took the lead from the fleece room as skirtings recorded healthy gains across the 2 selling days. 19 micron and finer with 3% < VM jumped 25 to 35 cents while the broader, burrier types were quoted 20 to 25 cents better. Crossbreds also recovered some of their big losses over the past few sales - 25s and 28 to 30 microns posted 20 cent gains as, surprisingly, 26 and 32 micron were unchanged. Cardings also took the positive lead from the other sectors. After a sluggish opening session this sector roared to life with all types adding 10 to 15 cents on the final day.

As is nearly always the case the sudden change in sentiment came out of the blue. It is usually the case of when, not if, as to market movements and finally we saw some upward shifting of the market. Overseas enquiry was keener as was local interest and the exchange rate has come down from its highs to low-mid 72 cents and the forecast of offerings in the low 40,000 bale range for the next 3 weeks aren’t spooking the buyers. When they need to buy wool, exchange rates, quantity or quality of the selection doesn’t matter! Growers warmed to the new price levels as over 95% of the national catalogue was sold with Fremantle leading the way to clear over 98% of their selection - maybe a good sign that the market still has some more left in it. Wooltrade sales have also been strong indicating buyers are still keen to source wool before next week’s auction starts in Melbourne on Tuesday.

Ram sales are winding up in this area and focus will move to southern parts of the state and into VIC. Some results of interest are: local Wellington stud, “Allendale”, topped out at $4,400 for a total clearance to average $1,400; South of Wellington, “Glenwood” also sold all rams on offer to average $1,465 with a top price of $3,200. Gilgandra stud, “Wyuna”, gained a top price of $3,000 to average $1,260 (an increase of $150 on last year); “Egelabra” also cleared all their rams to average $2,100 with a top price of $12,000. One sale of note down south was “Grogansworth” at Bowning clearing over 90% of their catalogue to achieve a top price of $3,200 (twice) to average $1,575. Most studs are reporting higher averages, top prices and better clearances. Great results!!

Just a reminder to all our growers that Woolpoll 2015 is open and voting will close next Friday, 30^th October. Every grower who has paid wool levies of $100 or more over the past 3 years is eligible to vote. The current levy of 2% is recommended to be the option to be retained. AWI boasts a $2.90 return to woolgrowers for every $1 invested with the status quo of 60:40 split for marketing/R &D to remain. Trade talk is another solid week to come as types with the right specs to come under buying pressure again. Go the Wallabies (and South Africa)!!

Main Buyers (This Week)