WEEKLY MARKET REPORT 

Week Ending 3rd May, 2019

 AWEX Northern Micron Indices Comparison

MOMENTUM BUILDING!

Wool sales recommenced this week following the Easter/ANZAC day holidays. After the market’s solid performance at the Easter Show hopes were high that the market had finally bottomed out and recovery was under way. The few buyers that were pre-valuing last Friday reported a bit of business being written and some mills being caught short for wool to process and the depreciation of the FRX by 1.5 cents also assisting any thoughts of ramping up purchasing patterns. The opening session saw 80% of the fleece selection in the good/best topmaking style (4/5) to see increases of up to 30 cents that lasted through to the final lots on the closing day. The AWEX EMI increased by 17 cents to 1960 but, as the A$ strengthened, this saw the market retreat in US$ terms - back by 21 cents to 1376. Most increases came in the good/best topmaking style types with the ever growing volume of poorer style wools losing ground to their superior counterparts - the gap between the good and inferior types widening.

Skirtings also benefitted from the renewed support as all descriptions lifted by 15 to 25 cents. Cardings shock off the run of falls to average 15 cent rises across the 3 centres. Crossbreds continued on their record breaking run as most microns jumped by 10 to 65 cents. This has a good 28 micron fleece type making 850 to 950 cents greasy and 26s over 1000 cents - incredible money!!

Talk of the market rising was spot on. Despite the national volume lifting to 43,000 bales (due to the 1 week recess) the extra wool was well absorbed by the buyers even with the absence of 2 of China’s largest indent buyers. Diminishing quantities over the next 3 sales (averaging 32,000 bales/week), the favourable FRX and fresh business being written all augurs well for a solid to dearer market for the immediate future.    

As is the case at the end of every month, latest AWTA figures were released. They showed a sharp decline in wool tested this April compared to 12 months ago 10%. The progressive total for the season was the same coming in at 10% less as offerings are just shy of 200,000 bales less than last season to date. The national catalogue drops back to 33,000 bales next week. If the Chinese indent buyers re-enter the market, price rises could be in the range of what was discussed earlier this week on the showfloor. Hope you are all getting the rain. 

Ag Concepts Fwd Prices as at 3 May, 2019

Main Buyers (This Week)