WEEKLY MARKET REPORT

Week Ending 7th August, 2015

 AWEX Northern Micron Indices Comparison

OFF TO A FLYING START

Wool sales resumed in earnest this week as we left behind 3 weeks of cold, wet and miserable weather and, for some of our clients down south, the best snowfalls for 30 years. The annual winter break was filled with anticipation as to how the wool market would resume as on the final day of sales before the break there was a flurry of activity from Chinese mills but it was too late as the sale had all but finished when buyers were fielding phone calls to book up wool. The odd lot sold on Wooltrade over the break and their sale last Thursday pointed to a solid opening to sales this week. As is always the case, it was a cautious opening hour but momentum built to see most indicators post 15 to 25 cent gains.  Buyers became more urgent on the 2^nd day of sales sending most indicators higher by 25 to 45 cents. By week’s end super-fine types <17.5 micron saw rises of 10 to 20 cents while 18 to 23s micron surged 35 to 65 cents higher. As usual, discounts shrunk and good spec lots commanded premiums.  One particularly good lot of 18.8 from Merriwa made 55 cents higher than its indicator while a 19.6 from Goodooga made 40 better and a tidy 17.8 WNR lot from Brewarrina was 45 cents higher. 

Skirtings weren’t left behind in the rising market as all types across all microns and VM levels gained ground. Quotes in this sector rose by 20 to 30 cents with the heavy VM types lifting by 35 to 40 cents. Cardings shook off the negative tone of the start of the season as the MCI in Sydney rose by 36 cents to 1041. All types added 25 to 50 cents to their pre recess levels.  Crossbreds weren’t to be denied as their broader microns matched rises in the fleece sector as 30 and 32s jumped 60 to 65 cents. Finer types (25 and 26s) were in sellers’ favour as 28s rose 30 cents.

A great start to wool sales as quite often August /September can be sluggish at best. The currency shift has helped, although only 1.5 cents lower than early July, now at 73.30 but has been in the low 72 range. Also in our favour was the bleak weather putting the brakes on shearing and receivals. This week's national offering of 41,800 was the smallest to be offered after any recess since August 2002. Buyers will be pleased with next sale’s volume, only 30,000 bales, a big drop of 30% from original forecasts - certainly a big turn around from the hoo-hah about increasing volumes in late June/July. Good sentiment and a small offering should see the market solid to sellers’ favour.

 Ag Concepts Fwd Prices as at 7^th August 2015

Main Buyers (This Week)