WEEKLY MARKET REPORT

Week Ending 2^nd March, 2018

AWEX Northern Micron Indices Comparison

NEW RECORDS SET, BUT FINANCE A PROBLEM

For the 2^nd sale in a row steady increases in the wool market were in play as the AWEX EMI added 10 cents-1830- to its previous level. The depreciation in the A$ by 2/3rds to 77.30 saw the EMI in US$ terms actually give up 5 cents to 1415. A 10 cent rise is good news, but there looks to be a few hidden stories behind the numbers. Sydney staged the final designated Super-fine sale of the season. Buyers, led by the Italian mills and to an extent forward and spot traders, chased the superior sub 18 micron types hard, theses indicators gained 20 to 55 cents with some lots up to 100 cents dearer. All microns broader than 18 had mixed fortunes, as 18.5s lost 10 cents, 19/20 lost 15 cents, and 21s unchanged with 22s up by 15 cents with the ever-increasing volume of high mid-break wools (>60) hitting the market getting hammered by 100 cents compared to lots with mid-breaks <60. After an aggressive opening day prices retreated on >18.5 to  see some losses recorded, maybe the larger national offering next week, 47,500 bales, up by 5% on earlier forecasts took the buying urgency out of the sale-rooms and for some buyers finance problems returned late on Thursday.

The skirting market also went in 2 directions as the best, finer (17 micron) low VM lots made good gains, up to 50 cents, while broader types over 5% VM with col/cott looked 20/30 cheaper. The carding market continued to soften after a dearer opening session, the MCI in Sydney fell 10 cents to 1339, LKS the main culprit giving up 30/35 cents while all other types remained solid. February has been a good month for the XB sector, 4 weeks of rises, this sale saw 28s and finer up by 10/25 cents, 30 micron the only negative, back by 10 cents.

Another positive sale as more records were broken. The EMI set a new daily record on Wednesday, 1834 and a new weekly high of 1830, after losing 4 cents on Thursday to eclipse January’s peak. 21s and 22s are at all-time highs in all 3 centres, 21s averaging 1935 and 22s at 1904, absolutely fantastic $$ for these microns. On the eastern seaboard new records were also set for 16.5, 19 and 20 microns. The table above illustrates just how big the increases have been over the past 12 months even the very volatile XB sector is ahead. Once again, the state of buyers finances reared its head late on the final day to be a factor for fall in the medium micron fleece wools particulary with high mid-breaks. The big  offering could test next weeks market as finances may not stretch through to the end the  sale, we sell mid-way on Thursday, fingers crossed.

                                                Ag Concepts Fwd Prices as at 23 February, 2018

Main Buyers (this week)