WEEKLY MARKET REPORT

Week Ending 9^th September, 2016

AWEX Northern Micron Indices Comparison

DOLLAR SPOILS THE PARTY!

The five days of rises in the wool market over the previous 2 weeks (25 cents) couldn’t be sustained as the benchmark EMI lost 15 cents to 1310 over the course of this week’s sale. In US$ terms the indicator added 7 cents to push back over 1000 to 1002 cents (a 15 month high) this due to the sharp rise in the exchange rate to 77.25 cents last night from a low of 74.80 only a fortnight ago. Losses were heaviest early in the sale only to find some limited support late in the final session. Finer indicators <18.5 finished the sale relatively unscathed - 5 to 10 cent falls - tempered by the 20 cent gain for spinners and best top-making style lots >40 nkt. The tender, broader and burrier types took the brunt of the falls - 19/19.5s lost 15 cents while 20 to 23s gave up 25 to 35 cents.

The softening tone filtered through to room 2 as skirtings also gave up some ground. The best style, low VM good length types were just in buyers’ favour as all others looked 15 to 20 cents cheaper than last sale. Crossbreds had mixed results as the finer indicators <26 were firm as the broader types >28 micron gave up as much as 20 to 50 cents for 32 and coarser. Cardings also gave up the gains of the past 3 sales as the 3 regional centres lost around 5 cents. Falls were restricted to the opening day as LKS and CRT lost 10 cents as carbonising - >3% VM - types most affected.

As reported a few weeks ago ram sales are under way and if Bull sales are any guide, studs should be looking forward to a successful outcome. Coddington Uardry Poll merinos at Cumnock cleared 96% for a top of $8,500 to average $2,160. Their Dohne section of the stud sold 30 rams to an average $1,300. Kerin Poll from Yeoval cleared all 289 rams to average $2,246 with a top price of $10,000 being paid twice. The sale grossed $649,000 - a new Australian record for an on property ram sale. On the meat-sheep side Marocara Dorsets from Wongarbon cleared all 166 rams for a top price of $6,100 to average $1,638. All studs look to be gaining higher clearance rates and averages, a reflection of the solid prices for wool and meat and the confident outlook and great seasonal conditions to look forward to in the short term.

The big movement in exchange rates, at one point 2.12% against the US$, was the major factor in the downward price direction, a complete contradiction to earlier signals in the week. In US$ and other ‘buy-in’ currencies, the market did improve in ‘delivered-to-mill’ prices to all major using countries signaling demand for most types remains strong but currency movements will dictate price more than other factors as the national offering drops back to 38,000 bales.       

Ag Concepts Fwd Prices at 9 September 2016

Main Buyers (This Week)