WEEKLY MARKET REPORT

Week Ending 29^th August, 2014

 AWEX Northern Micron Indices Comparison

SIGNS OF A RECOVERY

A mixed sale as a softer opening session was tempered by a solid finish as the benchmark AWEX EMI just kept its head above water to add only 1 cent - now 1002. After the first day of sales, as most microns lost 5 to 10 cents, the EMI did dip under 1000, the first time since early April it has been at this level. Buyer sentiment changed quickly as business was written on Wednesday night and was converted into a rising market on Thursday. By week’s end 19 to 21s were in sellers’ favour as 17 to 17.5 quoted as unchanged with 16.5, 18 to 18.5 and 22s off the pace by 5 to 10 cents.

This sale was the opening designated “Australian Superfine” for the season in Sydney with Melbourne hosting a stylish Launceston selection. Nine bales in Sydney achieved 1PP certification, the highest industry recognition of style and preparation. Despite this cracking selection only 3 bales bought more than 1500 cents. The premiums for fine, better style FNF types with strength readings greater than 45nk/t still exist as buyers are paying 40 to 70 cents above the indicator, even when the mid-break reading is above 75. The finer the micron, <18 the price differential is commonly 100 cents. On the other hand, once the strength drops below 40, then discounts can be savage for the high mid-break types, regularly up to 100 cents creating a “two tiered” market.

The skirting market also looks to have split in two as the fleece market has done. The better style and length types below 3% vm improved as the sale progressed with the burrier lots (5% and higher) lost ground to finish the week 5 to 10 cents lower. Two buyers dominated this sector, Aust. Merino Exports and Tianyu securing 46% (3,250 bales) of the offering. Crossbreds benefitted from more buyer activity as the increased competition saw a lift in prices of 5 to 10 cents, bar 26s which were 5 cents off the pace. As was the case with the skirtings, even with more competition, two buyers dominated, Techwool Trading and Fox & Lillie buying 43% of this sector. The pasting that cardings took last sale also steadied as all descriptions were fully firm to 10 cents higher.

The National Ram Sale and Sheep Show concluded yesterday with a tough sale to finish the event. The Supreme Champion went to the “Grathlyn” ram that was the sale topper at Bendigo in July when he was sold for $25,000. Lot 1 from local stud, Roseville Park, topped the sale at $25,000. On property ram sales start in earnest from next week. If you require any assistance in ram selection please do not hesitate to contact us. Next sale will have a national catalogue of 41,000 bales. We sell on Wednesday with a solid market on the cards.     

Ag Concepts Fwd Prices at 29 August

Main Buyers (This Week)

1002 cents é 1 cents compared with 22/08/2014           0.9357 é 0.0060 compared with 22/08/2014        

Northern Market Indicators (AUD cents/kg clean)

1021 cents é4 cents compared with 22/08/2014