Wk 09 1/09/2016. The AWEX EMI added 11c at auction sales in Australia this week, closing at 1,320c. Good buying activity continued its strong trajectory this week resulting in a strong opening day on Wednesday followed by Thursday’s price consolidation early in the day with some apprehension to support these levels towards the end of the day.
This week’s wool market was aided by a weakening currency conversion with the USD falling over 1c to $0.7501USD by Wednesday’s opening before closing at $0.7535USD on Thursday, with the EMI in USD closing at 996usc -1usc.
The designated Superfine sale series in Sydney attracted keen competition for the best style and strength lots, which at times attracted premiums of up to 200c over the good and average styles. Good price rises were experienced across all Merino MPG’s in all centres and the skirting’s followed suit with a return for support of the Crossbred types (especially in Sydney) this week. Cardings remained well sported at around last week’s levels.
The forward markets reacted positively with 21.0µ October delivery contracts trading from 1,410 to 1,435. New business emerged for post-Christmas contracts trading at new highs of 1,370c-1,380c for May delivery 2017. This interest continued into Tuesday with solid levels across all microns. October 21µ traded again at 1,435c and dragged early November up from 1,410 to 1,430. In the front months September 21µ contracts traded from 1,450s to 1,460s (approaching the prompt cash market).
Almost 43,000 bales are scheduled for next week’s sale in Sydney Melbourne and Fremantle, a quantity that should be met with the same vigour as we have seen over the past four weeks, given the AUD exchange remains under $0.76USD ~ Marty Moses
Market Report 09 (PDF)