WEEKLY MARKET REPORT

Week Ending 24^th April, 2015

 AWEX Northern Micron Indices Comparison

 LEST WE FORGET 

The good start to the wool market continued on unabated, dare we say. This, combined with the excellent follow-up rain in a lot of areas, has lifted moods and the prospect of a good winter over a vast part of the state except again to the north and west of Coonamble and in the Western division that sadly can’t take a trick and missed out on the much needed break.

All three centres were the beneficiaries of good rises from 20 to 26 cents for each regional indicator, now 1137 to 1194. The EMI now sits at 1153 (up 23 cents for the week) now at a 3 year high. In US terms the market rose 18 cents to 894 - these indicators now 10% and 9% higher than 12 months ago. One trend that is noticeable is the price gap that is growing between 18s and 22s, now 160 cents, the largest for over 2 years. Last July the gap was only 30 cents, hopefully a sign that finer wools are getting back to their true values. The bulk of the rises occurred on the opening day with a settling pattern when we sold on the final day, with 17 to 19s actually in buyers’ favour to 5 cents. Despite this all indicators jumped 20 to 35 cents, except 17.5 and 18s up by 15 cents, for the week. As is always the case nothing was neglected in the fleece room. Lots with up to 2.5% VM were purchased as FNF types, tender, colour, high mid-breaks and over-long lots bought as though no discount was necessary with the best of our fleece types (2 weaner lots from Parkes, making over 30 cents higher than the indicators).

Skirtings also came under fierce competition as buyers chased every type on offer. Rises were in the order of 15 to 25 cents for all descriptions regardless of VM, style or any traits that might attract discounts. Fine “BKN” <19 micron with less than 5%VM are now making mid 1100 clean, mid 600s greasy - a level that is on par with good medium fleece types at the Easter Show sale, only 3 weeks ago!! Bellies from Carinda and Parkes also made just over 1100 clean, 486 to 569 cents, great money for theses types. Cardings continued on their merry way as if there was no tomorrow. Each regional centre rose by 12 to 15 cents, Melbourne now just 2 cents away from 1000 at 998 and Sydney 983. For the second sale running we had LKS making over 600 cents, 1029 clean!! All types in this sector added 10 to 20 cents to their previous values. Crossbreds weren’t left behind as gains were okay but not to the extent of their merino counterparts rising 5 to 15 cents. Again we had a few fine lots of XB LMS making above the 700 cent mark, great money for these types.

A great week to sell wool as the market looks to have found a new level, according to one of the major buyers, as China was quite happy to lift their prices in US terms - something that they were reluctant to do for a long time. Growers warmed to the new prices as over 98% of the national catalogue was cleared to the trade. What was a surprise was the volume of wool withdrawn, 1400 bales, half of that in Sydney - these growers punting that they may capture better prices down the track.

Next week should see the market settle with subtle gains. We sell on Wednesday with 676 bales on offer.                 

Ag Concepts Fwd Prices at 24 April

Main Buyers (This Week)