WEEKLY MARKET REPORT

Week Ending 23^rd September, 2016

AWEX Northern Micron Indices Comparison

LACK OF SUPPLY FORCES MARKET DOWN???

Once again the direction of the market was nearly impossible to pick as outside influences dictated play. The market suffered from a rebound in the exchange rate of almost 2 cents, this being enough to see buyers pull back on their prices. The AWEX EMI fell sharply, a 24 cent fall to 1287 this, the largest weekly movement since early June. Also on the radar was the question of quantity, not too much, but not enough!! Falls were across the board as <18.5 gave up 20 to 30 cents but the better spec types in these micron ranges (even up to 2% VM) made 15 to 30 cents higher than their indicators. The medium to broad microns (19 to 24) recorded the largest falls giving up 25 to 45 cents.

Skirtings looked to be less affected as losses ranged from 5 to 15 cents depending on VM and style. Cardings bucked the falling trend of all other sectors as the MCI added 9 cents to its value (now 1062) as most types were 5 to 15 cents to the good. Crossbreds undid their good work over the past month by shedding 30 to 40 cents across the board.

For buyers to say that a shortage of wool is now a concern (and a factor in the falling market) is quite staggering. There are always plenty of grumblings when volumes balloon out by 10/15%, this usually following a sharp rise in the market. This sales roster was published as 42,000 last Friday to a final offering of 39,590 a fall of just 5.5%!!  The passed-in rate doubled to 13%. This, coupled with withdrawn wool, saw only 34,300 bales cleared to the trade. If they’re worried about securing wool from a dwindling quantity there is only one thing to do, bid up or miss out!! Year to date quantities show more wool offered this season than last by 24,000 bales, an increase of 7%. Their thinking hard to comprehend at the best of times!!

Ram sales continue on despite the rain threatening to wash some out. A few results from local studs: Parkdale SRS stud towards Collie cleared 100% for a top of $3,000 to average $1,420; Yeoval stud Gullengamble cleared 92% of the 170 rams offered to average $1,915 with a top price of $6,750; and Langdene from Dunedoo cleared 98% of their offering with a top of $12,000 to average $3,150.

Next week sees the 2^nd designated super-fine sale of the season and, if this week is any guide, growers will be nervous about the outcome as the national catalogue winds back to 35,000 bales. Wet weather is playing its part in slowing wool receivals to a walk.

Ag Concepts Fwd Prices at 23 September 2016

Main Buyers (This Week)