WEEKLY MARKET REPORT

Week Ending 5^th June, 2015

 AWEX Northern Micron Indices Comparison

MARKET CONTINUES TO DEFY GRAVITY

Another explosive week for the wool industry as the market took its second gigantic leap in a row. The EMI climbed 61 cents to 1373, this coming on the back of last sale’s 70 cent rise - a 10% gain over the past 2 sales and, since Easter, a massive 24% increase in  the EMI (1130 to 1373).  No 100+ cent rises this sale as the medium types again moved forward more than their fine-wool counterparts. 18.5s and coarser to 22 micron rose by 80 to 95 cents while the 18 and finer category added 60 to 75 cents. The 22 MPG is at 1475 in Melbourne smashing the previous AWEX/AWC record since 1979 with the odd lot making over 1500 cents clean. With the better performing medium types, this has again led to a closing of the gap in prices. Just 110 cents is the gap between 17s and 20s and 50 cents from 16.5 to 18s. 20 microns and broader are close to, or higher than, the 2011 peaks but finer than 19.5 today’s levels are 135 cents lower to almost 1000 cents less for 16.5s. Certainly plenty of room for improvement in the finer sector!!

Of the 161 fleece lots sold, 89 (55%) made over 1000 cents. Some highlights included WNR wool from Packsaddle, north of Broken Hill, making over 1000 cents, fleece wool (20 micron) from Girilambone averaging above 1000 cents and prem shorn fleece with 4% VM from Quambone averaging 944 cents. Other good results were Nyngan and Cobar wools making over 1000 cents with fleece wool from Orange returning $2,200/bale and a very tidy clip from Binalong had fleece bales averaging $2,052/bale.

Skirtings weren’t outdone by their fleece counterparts this sale. Following a cautious opening day they gained momentum on the final day to see all types 40 to 50 cents higher. Goolma BKN made 800 cents, Coonamble BKN reached 739 and BLS from Gilgandra with 16%VM sold for over 500 cents. Cardings again had the least upward movement of any sector. The 15 to 20 cent lift for LKS and CRS was enough to cancel the 10 cent fall for STN as the MCI rose by 8 cents to 1096 in Sydney. The better prepared LKS now making over 700 cents with one lot making 1165 cents clean - the price of 21 micron fleece wool pre Easter!!! Short fine LMS wool has now broken through the 1000 cent mark, great money for these types. Crossbreds also made reasonable gains - 26 and finer up to 50 cents better while the 28 and 30 micron types added10 to 25 cents.

A great week to sell wool. We sold every lot on offer. The 1,846 bales we sold grossed $3,132,877 to average $1697/bale - our highest grossing sale and bale average since the boom times of the late 1980s. Helping the market along was the smallest weekly offering for 12 months, a relatively stable exchange rate, stocks in most sections of the supply chain running dangerously low and a shortage in global wool supply. It was interesting to note late on Thursday some holes appeared in the crossbred and carding sectors. Fremantle is back on deck next week but only 36,000 bales will be catalogued. As some urgent requirements have been filled some types may come under price scrutiny, but for the majority of the selection it should remain fully firm.   

Ag Concepts Fwd Prices at 5 June

Main Buyers (This Week)