WEEKLY MARKET REPORT

Week Ending 27^th May, 2016

AWEX Northern Micron Indices Comparison

ROOM 2 TYPES HELP LIFT EMI

 Another solid but unspectacular sale as a modest gain for the EMI of 6 cents to 1297 took it to a 9 month peak. The shift in US$ terms was less, just a 4 cent gain to 935 as the currency had a stable week moving  only .25 of a cent either side of 72 cents. As was the case last week sectors other than fleece were the main contributors to the market’s overall gain.

Fleece types remained flat, bar subtle movements of +5 cents for 18s and 19 to 20 micron. All other indicators were unchanged except 16.5 losing 8 cents for the sale. The FNF types again commanded good premiums over their burry counter-parts, some selling ok, some looking a bit cheaper. Some lots up to 1.5 VM were making prices similar to FNF types with low mid-break types across all microns again in favour with buyers.

The smallest offering of skirtings for the season thus far (4319 bales, 14.7% of the total selection) had a similar sale to the fleece room where minor movements were the order of the day as most types finished unchanged, but in buyers’ favour in the 18 micron and finer categories under 5% VM. Melbourne performed much better - most lots up by 10 to 20 cents as a noticeable reduction in discounts for shorter, burrier types closed the gap on their better style/low VM lots. Crossbreds rallied on the back of the stable exchange rate and again a small quantity (15%) had all types up to 30 micron post 10 to 25 cent rises as broader microns were up to 5 cents better. Cardings also had a positive sale as both indicators rose by 7 and 18 cents respectively as the Melbourne indicator now above 1100 cents (1106) with Sydney at 1096. Locks had a flat sale as an opening day fall was negated by a rally to see them unchanged as all other types looked to finish the sale 10 cents higher.

At just under 30,000 bales, the 2^nd smallest weekly offering for the season, growers may have been looking for a bit more of a rise in the market, especially in the fleece sector. This wasn’t to be as a more cautious buying approach looks to be the order of the day. The A$ barely moved all week, helping exporters not to make any rash decisions to change their buying patterns. What might force them to re-think is quantity or lack of. To this week bales offered nationally are running 9% behind last season (165,720 bales) about 4 selling weeks’ less wool. This reduction in the clip should be ringing alarm bells in China as we hit the final month of this season with 5 sales to go. The 3 centres will be all in action next week but the offering only goes up to 33,400 bales. We sell late on Wednesday to not much change in the market.  GO THE BLUES!!

Ag Concepts Fwd Prices at 27 May 2016

                                                                 Main Buyers (This Week)