WEEKLY MARKET REPORT

Week Ending 6^th October, 2017

AWEX Northern Micron Indices Comparison 

DOLLAR HELPS KICK START THINGS - RAIN GUAGE STILL EMPTY

After a couple of weeks of flat-lining where the EMI only moved a few cents either way, it was pleasing to see the merino sector spring back to life across all categories. The fall in the dollar of around two cents USD finally had some traction which, when added with increased interest, saw some significant gains across all merino indicators. It was the low VM, low mid-break wools which saw the best of the competition but not limited to these types as buyers fought for quantity among the lesser types. What has become very evident over the past months is grower acceptance to shorter shearing intervals. We are seeing a much greater quantity of 6-9 month shearing, delivering wools in the 60-85mm bracket which the market is looking for. Whilst the discounts for longer wools aren’t always pronounced, the competition on the shorter wools are always more predictable. The skirting market followed similar trends as the fleece sector with rises of 20-50 cents over the two days selling. As usual a limited selection of cardings saw extreme competition in all three centres with some astounding prices for good crutchings and locks.

The crossbred market didn’t follow the same pattern and struggled to maintain levels although, what is apparent is that well prepared crossbred clips (which aren’t that common these days) sold much better than those thrown together.

Some interesting stats released from AWEX this week on comparisons year to date against the last five seasons. The volume of wool sold to date this year is 8% higher than last year and 5% higher than in 2013, yet the average value has increased by$227 a bale (15%) against last year and $542 a bale (44%) from 2013. For fleece wool (18.5 and finer) it has increased by $1000 a bale or 62% to $2600 a bale since 2013. Coarser than 18.5 it has risen to an average of $1957 a bale, an increase of $576 a bale. The only sector to not be at a peak is crossbred which, at an average of $927 a bale, is down $138 from their peak two years ago. The EMI this week at 1550 is exactly 250 cents higher than the same week last year.

Macwool will offer 724 bales next Thursday with another good week expected.  

Ag Concepts Fwd Prices at 6 October 2017