WEEKLY MARKET REPORT 

Week Ending 8th March, 2019

 AWEX Northern Micron Indices Comparison

STEADY AS SHE GOES!

Another steady week for the wool market as the AWEX EMI had a small decline of 8 cents to 2008. In Fremantle it was a reversal of the last series as it virtually gave up all the gains of the previous sale to fall by 20 cents to 2157. The volume of dusty, tender, fine fleece types weighed on the indicators as the lots with better specs, that were few in number, were rock solid but couldn’t compete with the inferior types as they pushed the fine indicators < 18.5 down by just 5 cents while the 19s and broader retreated by 15/20 cents with some of the poorer style wools quoted 30 to 60 cents cheaper as buyers struggle to fit the vast number of these drought affected wools into orders.

Skirtings followed the lead of their fleece counterparts to see prices reduce by 10 to 20 cents across all microns and VM levels. Cardings continued their price rises after last series’ hiccup to have the 3 centres average a 30 cent increase for the MCI, now 91 cents higher (1237) than their pre-Christmas close. Crossbreds kept their stellar run going as most types added 10 to 30 cents to their previous record breaking levels.

Despite the FRX going in favour of the A$ by 1 cent to 70.50 it was not enough to stop the market from falling. Although demand remains high and supply is dwindling the quality of the offering is a hindrance to any price advancement at the moment with the selection not improving any time soon.

ABARES held its annual Outlook Conference in Canberra this week releasing its new 5 year forecast for agricultural industries. The new forecast for wool looks confusing and inconsistent which is not providing the correct information for the industry. They are forecasting that total wool production for 2018/19 will be 383mkg (2.1 million bales) a 9% fall from the previous season. This is in line with AWTA testing data that is 11% less than last season up till the end of February.

The Chinese ban on wool imports from SA continues as a delegation from there is in China to try and bring a quick resolution to the stand-off but it could take up to 2/3 months. This didn’t hinder their market (up by 2% this week) with the big Chinese processor, Tianyu, securing 1600 bales. Our national catalogue drops back to 41,700 bales next week; we offer 760 bales on Thursday hopefully to a dearer market.

            Ag Concepts Fwd Prices as at 8 March 2019               

Main Buyers (This Week)