Wk 15 13/10/2016. The AWEX EMI strengthened its position, increasing 18c to close the week on 1318c at auction sales in Australia. Whilst the market was aided by a weaker currency exchange (-1%) and a small national offering of 31,857 bales, there was strong competition from the opening lot as the country side commenced a much needed airing and drying phase. This sentiment continued until the hammer fell on the last lot for the week.
Once again it was the fine micron categories that led the way for the rest of the MPG’s to follow, with 30-45c increases experienced in the sub 19µ fleece types. Premiums continue to grow for the best style and measured lots with up to 50c premium being paid for these suitable lots over the average style and measurements with solid premiums maintained in the Northern region when compared to the Western and Southern markets. The medium fleece lots were certainly not neglected with rises experienced from 10-45c in the 19.5µ -22µ categories and the feature was the catch up of the southern markets MPG’s to reach the or slightly exceed the northern MPG’s. Skirtings mirrored the fleece lots with isolated fine skirting lots at times posting extreme prices over the rank and file skirtings types which posted 20-30c increases for the week. Cardings were 10-15c dearer whilst the Crossbreds posted a mixed bag of results this week. 25-28 microns were 15-20c cheaper however 30 microns posted 10c rises and 32 micron types were down 5c.
The key features in the market place today are:- the low supply due to extraordinary weather conditions across the eastern states, the increasing demand emerging as we sail deep into the Spring months and traditional buying volumes usually increase. The performance of the fine and superfine wool against the medium, with a new 5-year high in the basis between 19 and 21µ. And finally the demand for short fibres continues to amaze the market, with 60mm lots at times making over the cash in the 20 micron range. Next week’s national offering remains a meagre 36,259 bales.
On the Forward markets Mike Avery from Southern Aurora Wool reports “Bidding was at or close to the cash Monday and Tuesday, but patience from the sellers was rewarded on Wednesday when bidders met the seller paying 10 to 20 cents over cash for pre-Christmas maturity whilst the forward curve flattened for the New Year. The premium for 19 microns over 21.0 continues to widen (now 151 cents) maintaining its 5 year highs. Crossbred trade remains sluggish with prices for 28 and 30 micron now back to their long term average levels.
The week ahead should present growers with opportunities to hedge pre-Christmas at cash with November trading 1495 for 19.5 and 21.0 at 1410 during the week. February traded 1390 for 21.0 (cash 1405) confirming the flattening of the forward curve.”~ Marty Moses
market-report (PD)
