WEEKLY MARKET REPORT

Week Ending 9th November, 2018

 AWEX Northern Micron Indices Comparison

THE END OF AN ERA AT AWI

AWI Chairman, Wal Merriman announced today that he had stood down as Chairman of the company after 13 years in the top job. His decision came just prior to the AGM in two weeks time to allow the incoming Chair, Colette Garnsey, time to prepare for the next busy year. Wal’s contribution has been enormous and one hopes his tenure is remembered as one who steered and guided the company back into marketing and putting wool back on the stage in the world fashion industry. He leaves his position with the company in a strong financial position with a list of many significant achievements for the wool grower shareholders.

It seems nothing at the moment can influence the buyers into a positive change of sentiment as the market lurched further into negative territory. Each region recorded similar losses (74 to 82 cents) as the AWEX EMI retreated to the tune of 78 cents to 1776. In US$ terms the fall was not as severe, a 29 cent fall to 1293 this due the FRX ascending against the A$ by 1.5 cents. Even though falls were across the board, fortunes were reversed from the previous few sales as the < 18.5 micron escaped the bigger losses of their broader counterparts (45 to 70 cents) as 19 and coarser collapsed by 95 to 130 cents - a sign that the gap between the fine and broad microns was too close as in the past few sales the <19 micron have been falling dramatically and broader types not so. Only the very best style lots with good length and strength results escaped the carnage giving up 20/40 cents.

Skirtings also came under the pump as losses across all microns, VM, styles and lengths totaled another 50 to 100 cents. Cardings again copped a caning as some buyers were still sitting on the side-lines as all types in this sector were quoted 60 to 100 cents behind the previous series. Crossbreds took reasonable hits as well with a cut-off point around 26 micron. Finer than this the falls ranged from 50 to 100 cents while coarser types were adjusted down by 20/30 cents.

After last series relatively minor falls talk of the falling market reversing its fortunes was widespread. That was until the FRX shifted in favour of the 3 major wool trading destinations as the A$ jumped and buyers let the market freefall again. Talk is still strong that the market is very close to the bottom.

Ag Concepts Fwd Prices at 9 November 2018

Main Buyers (This Week)