WEEKLY MARKET REPORT

Week Ending 7^th April, 2017

AWEX Northern Micron Indices Comparison

BUYERS ON TOP BUT GROWERS FIGHTING BACK!

Buyers were again under no pressure to secure wool as the opening day of sales was a continuation of last week’s carnage. Losses were big and across the board ranging from 30 cents to 100 for all micron ranges resulting in 25% of all fleece not selling this despite the $A retreating by a full cent from last Friday. Thursday saw some sort of recovery as all indicators were in sellers’ favour to 40 cents better. This equated to the AWEX EMI peeling off by 43 cents to 1459, an 87 cent loss over the past fortnight. The drop was similar in $US terms, 50 cents back to 1101 (83 cents all up for the 2 weeks). Once again inferior types bore the brunt of the losses as discounts for VM levels from 4 to 7% looked the same. On the other hand, wools with the right specs still commanded good premiums. One 18.6 lot from Coonabarabran (pain relief) looked 170 cents higher than the indicator while a few non- mulesed lots from Yeoval and Wellington were 40 to 190 cents to the good when compared to their indicators.

Skirtings continued on their path to cheaper levels over both days unable to stage a comeback like the fleece sector. Only the “cracking types” were immune from losing ground with these actually dearer while other finer lots <5% VM were 20/30 cents off while the burrier broader types gave up 60/80 cents. Cardings also suffered losses throughout the course of the sale as all types in this sector fell by 20 to 50 cents. All 3 centres’ MCIs are now below the 1200 cent mark (1199 to 1176). Despite this fall we had a line of LKS from Coolah make 836c/kg while this grower’s carding length LMS 17 micron with 7%VM averaged 1280c - still great money for these types. Crossbreds looked to be the best performing sector as losses were restricted to 28 and 30 micron (10 cents down) while all others up to 10 cents better.

Buyers certainly exacted revenge over the past 4 sale days but there always comes a time when circumstances turn and sentiment changes. Factors can vary from exchange rate movements enticing business to be written or the market falls to a more acceptable level to allow buyers to re-enter the market or an impending recess or the forecast of limited quantities to come. Whatever this week’s reason, it was certainly welcome as it looked as though 8 sales of consecutive rises would be wiped out in a flash!! Next week has sales back at the Easter Show; we have a catalogue of 1540 bales late on the final day, Wednesday, with a stable to better market to finish this series of sales before the one week Easter recess.

Ag Concepts Fwd Prices at 7 April 2017

Main Buyers (This Week)