Wk 11 15/09/2016.  The AWEX EMI closed on 1,311c posting a 6c rise at auction sales in Australia this week. Whilst the 19 micron and finer MPG’s posted solid rises on Wednesday before giving up a few cents on Thursdays’ close the 20 and coarser MPG’s struggled to maintain last week’s level posting small gains on Wednesday before posting some solid losses on Thursday.

Given the AUD closed the week down 2.2c at 74.64 USc one would have thought the market would have been a little more bullish, instead the EMI in USD fell 24 USc to close the week in 979c (the lowest USD level since reopening this season).

Skirtings mirrored the fleece, posting some solid results for the best style and low VM lots. The Crossbred wools enjoyed some good buyer interest this week posting good gains across all the XB MPG’s whilst carding wools were solid to slightly dearer in the Merino category whilst the demand and price for Crossbred cardings seems a little under done.

After somewhat amazing result over the opening six sales in this season it seems that we may be entering a period of supply/demand indigestion. Exporters report a complete “drying up” of enquiry of business from China this week however their mid-autumn festival on the 15th and 16th of September, which may have been the key to Thursday’s market, however this won’t be evident until we see the market reopen next week with 41,893 bales. In relevance this market is still in the 95-99 percentile bands in merino fleece categories and offers forward prices within 5% of this level. It is currently a seller’s market. ~ Marty Moses

market-report-11 (PDF)