WEEKLY MARKET REPORT

Week Ending 7^th October, 2016

AWEX Northern Micron Indices Comparison

FOOTBALL GODS FINALLY DELIVER!!

The market did post a gain for the second sale in a row, the AWEX EMI rising by 10 cents to 1300, with most of the good work being done on the opening day. In US$ terms the indicator reversed last sale’s lifts, dropping 5 cents to 988, as the exchange rate fell by a full cent week to week. The market followed the pattern of previous sales as finer types edged higher and medium/broad microns were just there. All the movements occurred on the opening day with a consolidation of prices to end the sale. 18 micron and finer (and 20s) were up to 5 cents better - 18.5 to 19.5coming under the most buyer pressure to finish 10 to 20 cents higher and 21 and broader in buyers’ favour. Lots with the right specs again outperformed their indicators by up to 50 cents as some lots with over 2.5% VM were bought as FNF types.

Skirtings also ramped up their gains as buyers focused on <17 micron up to 3% VM pushing these types 30 cents higher as the 5% VM lots added 20 cents to their previous values. One clip from Mudgee saw BKN make 1001 cents and BLS from the same grower sell for 910 cents - great money that lifts clip averages.  Cardings had another steady sale (the MCI up by 3 cents) as most types sold to sellers’ favour with STN lots up by 15 cents. Interesting to see the MCIs in Melbourne and Fremantle posting 10 cent gains as all 3 centres are now within 14 cents of each other. Crossbreds struggled to go in any direction broader than 28 micron to remain unchanged as <26 micron lost 10 to 20 cents.

The EMI now sits only 20 cents below this season’s peak of 1320 that was set at the end of August. Persistent rain and flooding is still impacting on receivals and delaying shearings by up to 2/3 weeks. This week’s catalogue of 37,000 bales was the second smallest for the season to date as forecasts are not anticipating a national catalogue of 40,000+ bales any time soon unless the market gets extremely dear dragging out Sale 99 wool onto the market. Year on year we are still 23,000 bales up on last season and if we get a run of dry weather wool receivals will pick up before harvest commences in November keeping this figure ahead of last season for the foreseeable future.

Ram sales continue on and averages are up by $150 to an amazing $1100 on last year (back page of “The Land”) and top prices for studs are smashing previous records. Cassilis Park had a full clearance this week for a top price of $2500 to average $1205. Macquarie Dohnes held their postponed sale due to floods to gain a top price of $8000 for an average of $1810 clearing 95%. Talk is the market to follow the pattern of the past few weeks.

Ag Concepts Fwd Prices at 7 October 2016

Main Buyers (This Week)