Wk 43 21/04/2016. The AWEX EMI suffered another loss, falling 24c at auction sales in Australia this week.
Now on 1217c the AWEX EMI returns to levels experienced in early March however this week’s fall was largely due to the appreciating AUD which reached a new 10-month high at 78.25USc during the week. In fact the EMI in USD terms only fell by 1c, it remains at its 3rd highest level in USD since August 2015.
With the currencies intentions signalled early in the week over 10% of the offering was withdrawn before sales commenced, despite this the market opened around 20-30c cheaper across the micron range. However the market quickly found its new basis and over the remainder of the selling week managed to hold or improve levels slightly.
Merino Skirtings initially lost 20 cents before firming on the final day with Crossbreds losing another 15 cents this week. In Sydney the Merino Carding Indicator rang the alarm bells loudly as the MC posted two 30c falls totalling 61c while Melbourne and Fremantle were more moderate losses of 20 to 30c.
Next week the National offering drops to 38,925 bales signalling the possible end of the larger quantities for the season, as shearing will slow down in the wheat-sheep belt as (dry) sowing is in full swing. Not a lot of trades were executed on either of the forward contract mechanisms with no reports of any Spring contracts being done. It is expected that if currency returns to 76usc the market will quickly recover its lost ground. ~ Marty Moses