WEEKLY MARKET REPORT

Week Ending 31^st August, 2018

AWEX Northern Micron Indices Comparison

MARKET PLEASES GROWERS AND BUYERS

The wild swings of the past fortnight weren’t evident this series as a much more measured approach to buying was on display. This week saw the opening “designated superfine sale” of the season. The superior style, sub 19 micron selection in Sydney that had attracted wools from WA and VIC was well received by the exporters as both days saw steady rises for the finer, better style types. By week’s end the 18 and finer indicators added 35 to 50 cents, 18.5/19s gained 25 cents and 20s and broader, although in short supply, weren’t neglected to finish in sellers’ favour by up to 10 cents.  As is the case when a larger volume of these superior types hit the market, the Italian buyers come to the fore with premiums on some lots up to 150 cents higher than the indicator, as both days had a total clearance in both rooms of 98.4%. The Northern Regional Indicator added 28 cents to finish at 2145. The EMI added 22 cents to finish the sale at 2090. The fall in the FRX did no harm either falling to 72.65 cents on Thursday night, back by 0.80 of a cent from last Friday.

Skirtings also benefitted from the superior style selection on offer to have increases for both selling days for a combined rise of 50 to 70 cents for < 19 micron and below 5%VM. All other broader and burrier types were quoted as fully firm. Cardings continued on their merry way as double digit gains over the 2 days saw the MCI lift by 34 cents to 1560 cents. LKS and CRT led the charge with advancements of 40 to 50 cents with STN in sellers’ favour. Crossbreds turned last sale’s cheaper trend to the good as the finer end (< 28micron) looked solid with the 28 and coarser types dearer by 20 to 35 cents.

National totals rose to 35,000 bales as Fremantle rejoined the selling roster after a week’s recess but all things didn’t go to plan as the Melbourne sale scheduled for Thursday was postponed till this morning due to the massive fire in a shed next door (an old woolstore) to the Brooklyn wool stores that started yesterday morning but, although contained, could still burn well into next week. Black plumes of smoke from asbestos and wool grease could be seen as far away as Geelong.

A good sale as the excellent selection (in Sydney) and favourable FRX movements helped the market appreciate into positive territory. Another factor could be the release of consumer confidence figures in major wool consuming countries. In the US the figure is just below the peak of April and the highest since 2000. This is the same for the European Union, China and Japan but surprisingly confidence has waned in Sth Korea.

The National Ram Sale was held in Dubbo this week. In what might be (but hopefully not) a disturbing trend just 56% of the rams offered were sold. Honors went to the South Australian stud, Orrie Cowie, with a top price of $22,000 bought by the Brumpton family in QLD. A national catalogue of 38,000 bales is on offer next week - a repeat of this series would be good!!

                        Ag Concepts Fwd Prices as at 31 August, 2018

Main Buyers (this week)