Wk 16 20/10/2016. The AWEX EMI closed the week 13c higher to finish on 1,331c at auction sales in Australia. Just over 34,000 bales went under the hammer this week challenged by a rising AUD against the US$ (+29USc) obviously was not enough to meet the demand.
The weekly gains were apportioned across the entire Merino micron range with rises of between 15 and 30c experienced in the 16.5-22 MPG’s.
Merino skirting’s were generally 20 to 30 cents dearer whilst the small number of crossbreds on offer were generally unchanged.
Merino carding’s posted between 15 and 25c price increases for the week with the emphasis heavily on low VM lots.
Mike Avery from Southern Aurora reports “Overall sentiment was stronger to start the week with pre-Christmas bidding at cash on most micron qualities. The AUD strength and risk estimation limited the interest in the New Year pricing prior to the start of the auction series.
Limited supply coming through this week helped maintain the interest in the front months with 21.0 micron trading at and above cash. November traded from 1,410 to 1,420 and December 1,400. The forward curve has flattened through December and into the Autumn delivering growers forward pricing opportunities at historically high levels. Some interest has come forward this week from growers looking to buy put options from December through to July 2017”.
Next week’s national offering approaches 45,000 bales on offer in Sydney, Melbourne and Fremantle another challenge for this robust market environment! ~ Marty Moses
Market Report 16 (PDF)