WEEKLY MARKET REPORT

Week Ending 4^th May, 2018

AWEX Northern Micron Indices Comparison

MARKET MARKS TIME EVEN WITH LOWER DOLLAR

The cheaper trend in Melbourne and Fremantle last Thursday put fear into wool growers selling in this sale that the market might soften. They were spot on. An opening cheaper session in all 3 centres saw last week’s gains disappear but, in an encouraging sign on Thursday, markets looked to have leveled on the eastern seaboard and Fremantle’s fortunes were completely reversed from the opening day as they recaptured all their losses to have most MPGs firm to 20 cents dearer by the end of the sale. By week’s end results were mixed here and in Melbourne as all indicators < 20 micron were 10 to 35 cents off with broader types in buyers’ favour in Sydney and finer < 18.5 mostly dearer in the south and others either side of unchanged. The AWEX EMI gave up 10 cents for the sale to 1836. The move in US$ terms was minimal as well - 17 cents back to 1381. The FRX dipped to its lowest point since last June to 74.94 cents on Wednesday but did not assist the market - the A$ now at its lowest point (75.20 cents) almost 3 cents below its recent peak of 78.08 just 2 weeks ago.

Skirtings also came under some pressure as, like their fleece counterparts, only the very best fine and low VM types (< 3%) held their ground or made a slight advancement as the > 5% VM types were irregular but most looked 10/20 cents cheaper. Cardings also had a mixed sale with the MCI drifting back by 2 cents to 1377. Finer LKS and STN were in sellers’ favour, broader LKS off by 10 while CRT remained unchanged. Crossbreds took a breather from their frantic rises over the past 5 sales as < 28 micron remained solid with 30s and broader 20 to 35 cents cheaper.

The market movements were minimal this week as a low point in the FRX for 12 months couldn’t persuade buyers to step in and secure the ever decreasing volumes coming onto the market. The quality of the offering is still  the biggest factor influencing price direction which was the talking point and how to average these wools into orders that fit mills’ specifications is becoming more and more difficult as the “good“ wools become scarcer and burrier/dusty types are turning up to brokers’ stores literally by the truck load. The quality of the selection did improve marginally this sale but not enough to push prices up. The lift in prices in Fremantle yesterday could have been quality related but the eastern seaboard growers are hoping this will follow suit next week with national quantities averaging 36,000 for the next 3 sales.

              Ag Concepts Fwd Prices as at 4 May, 2018

   Main Buyers (this week)