WEEKLY MARKET REPORT

Week Ending 24^th November, 2017

AWEX Northern Micron Indices Comparison

 A BIG THANK YOU

The dust has settled after last Friday’s AWI AGM and I would like to thank all the wool growers who voted and offered support over the past two months. There was a clear message given by literally thousands of growers and I will be determined over the next four years to repay their trust and ensure AWI continues its good work in the areas it is actively involved in and assist where I can to repair some of the rifts which have appeared over the last couple of years. The most recent election was not without its share of controversy and AWI have promised an investigation as to where some things went wrong, particularly growers who didn’t receive voting papers in time to vote. If you were one of them, please let us know so we can pass it on.

The softer markets on the east coast last Thursday had most pundits wondering if the market had finally peaked. After spending 3 sales in September at around the 1520 cent level the AWEX EMI has shot up to a record high last week of 1689, an increase of 178 cents over a 9 week stint that saw the EMI only record one negative day. It was a nervous start to this sale as Melbourne and Fremantle posted modest gains with Sydney a shade cheaper weighed down by broader microns a touch off and XBs cheaper as was the case in Melbourne, falling considerably. Thursday had the losses extend across all sectors as access to finance became harder and buyers were more and more selective with their purchases. By week’s end all merino fleece microns had lost 20 to 40 cents bar 21s back by 10 cents. As the buyers were looking for lots with the “right specs” these came under pressure and were quoted 30 to 60 cents higher than their indicators, about the only good news in a dull week.

The skirting catalogue escaped the price hiccup of their fleece counterparts virtually unscathed. Most of the selection was < 19 micron and below 4% VM and remained pretty much unchanged for the series with the odd lot in the 17/18 micron range losing support towards the end of the sale. The record breaking carding sector also took a breather from its meteoric rises. Apart from some LKS/CRS in the 18/19 micron range slipping by 10 cents all other types remained rock solid. History was made when we sold a line of LKS from Cargo, near Orange for 1009 cents!! The finer LKS under 19 micron with < 3% VM are now making over 1500 cents clean - just 150 cents from the 21 micron fleece indicator. A lot of CRS from Cooma made 1044 cents (1675 clean) - amazing prices for cardings. When the market started its climb 9 weeks ago 21s were at 1532 and the 19.5 indicator was on 1687. Crossbreds continue to frustrate growers. Just when it looked like a recovery was on the way as most microns (26 to 32) added 80 to 100 cents over a 2 week period in early November, it’s been downhill ever since. The sales losses ranged from 10 to 40 cents on top of last week’s fall but we are still 20 to 50 cents ahead of the levels before the big rises early in November. 

Concepts Fwd Prices at 24 November 2017

Main Buyers (this week)