Wk 23 08/12/2016. The AWEX EMI fell 29c at auction sales in Australia this week. Now at 1,349c the EMI’s reversal of the previous positive market sentiment was a reaction linked to 53,248 bales on offer and appreciating AUD.

The market opened tentatively with the Merino MPG’s falling 30-40c initially, with a blow out of up to 60c by the close of Tuesday’s Market in Melbourne and subsequently Sydney opened Wednesday’s market with similar results. Fortunately the market found new support early on Thursday with a slight rebound in prices across the board. Whilst the Australian wool trade were scratching their heads the South African market (Cape Wools) reported currency and supply irregularity as the drivers for their 5.5% downward adjustment.

Merino Fleece opened the week up to 60c cheaper but clawed back 20-25c as the week progressed. The medium and strong Merino types were most affected as the 18-21 micron price basis continued to grow.

Skirtings behaved similar to their fleece equivalents closing 20-40 cheaper and cardings remained within 5-13c of last week’s prices. Crossbreds bucked the trend offering the largest selection of Crossbred types in 11 months. Rises of up to 25c experienced in the 30-32 MPG’s whilst 26 MPG struggled to maintain last week’s levels losing 6-8c and finally the 28’s held their price.

Next week catalogue is scheduled to offer 56,122 bales across all centres, and will be the final sale in 2016 before the sales resume in 2017 after the 3 week recess.

Whilst there has been some volatility in the market you can only feel positive sentiments of the past six months if you are a wool and sheep producer. Finally the Superfine wool producers are experiencing a glimmer of hope, fine and medium Merino’s enjoy exceptional wool and sheep meat prices, and whilst the Crossbred sector has lost its footing the lamb market is very bullish. The Wool Production Forecasting Committees currently completing their last estimates for 2016, we expect a mildly optimistic result in production for 2017. Fingers crossed the market can muster the energy needed to close out the year on a positive note. ~ Marty Moses

Market Report (PDF)