Wk 51 16/06/2016. The AWEX EMI finished in positive territory at Auction sales in Australia this week closing the week at 1279c a gain of 9c. The 3 Centre 31,000 bale offering was met with some vigour with both Sydney and Melbourne Indices increasing by 8c and 11c respectively. Fremantle measured an 8c loss against the last time they sold a fortnight ago.
With the AUD exchange rate falling against the USD the market began with a firm tone, strengthening as the week progressed. Once again it was the more stylish and better specified lots that attracted the keenest buyer support however the average style and lower specified lots found renewed support this week.
The Merino Fleece categories found gains of up to 20c, and the Skirtings followed suit. Crossbreds were barely maintained this week on a limited selection as were the carding types. Buyer support was dominated by the exporter families:- PJ Morris, Techwool, Modiano and Fox & Lillie. Next week we return to a two centre 24,160 bale offering, the lowest in 12 months.
With only two weeks left in this financial year and four weeks before the three week recess there is a sense that the market will buck the historical fiscal year blues.
Forward markets awoke this week and there was solid trade executed in the July and August within 20c of the spot price and whilst the forward curve into the Spring is still at 5-6% discount to the market it still represents a solid price base for 19 and 21 MPG’s.
Whilst record low production figures coupled with solid demand is in the sheep and wool favour, I wonder why wool and sheep are the only Ag commodity that reduces production against the price curve? ~ Marty Moses