Wk 12/16 22/09/2016 The AWEX EMI closed on 1287c falling 24c for the week and posted its largest fall for over three months. Reports from wool buyers and exporters highlighted the impact of the currency exchange on the confidence in the market. In addition the market uncertainty may have been slightly muted due to the Nanjing Wool Conference currently underway in China.
39,590 were offered this week with the market reacting negatively immediately under the pressure of rising currency exchange and as the sale week unfolded so did the price declination Whilst there were substantial falls across the MPG range it was the medium merino categories that were hardest hit falling 30-40c, whilst the fine and superfine fell 20-30c with selected best style and measured lots almost maintaining last week’s levels.
Skirtings and crossbreds followed the fleece trends whilst the cardings moved against the trend rising up to 10c in Sydney.
As we move into our traditionally high supply period price, volatility is likely to stay with us as demand triggers shift. This has been evident not only in outright terms but within micron types. 21 microns opened in August at 1,470 peaked at 1,473 and closed this week on its season low of 1393.
19 micron opened at 1,497 peaked at 1,509 and now sits at 1,488. This highlights the necessity to look at both absolute price and the basis to other microns when choosing the appropriate hedge strategy for your enterprise.
Next week’s offering of only 35,553 bales (due to the Victorian public holiday next Friday in preparation for the AFL Grand Final). Given that the flooding subsides over the next month next week’s offering may be the last sub 40k bale offering until December.
Our thoughts go out to those who are experiencing floods in their regions. A huge thank you to those who visited our Henty Field Days site making it our most successful field day display to date, and the staff who organised and attended. ~ Marty Moses