Wk 24 15/12/2016. The AWEX EMI closed out 2016 at 1,355 a 6c rise for the week. With last week’s violent downward reaction still fresh in our minds the market opened on a more positive note and a new price basis was quickly formed. Thursday’s market validated the previous days rises for all Merino types, conversely the Crossbred types continued to founder under the pressure of the largest weekly offering for two years, and attracting a pass in rate of 34%. The falling currency exchange rate was certainly an aid and may instigate some Forward sales out into the New Year.
Merino fleece experienced rises between 15-20c however as we have seen in the past sales there were some best style lots with favourable specifications that were 40-50c clean above the average. Skirtings added 20c to their previous price levels whilst cardings were slightly cheaper.
Unfortunately Crossbreds are experiencing a rough time against the trend of the Merino market. Oversupply and a pushback from end users to the poor or no classing preparation standards in this sector, coupled with waning demand has resulted in a return to below 5 years average prices.
Some interesting statistics to finish out the year The EMI finished the 2016 calendar year 90 cents higher (+7.1% YOY) at 1,355 cents, the highest calendar-year closing figure on record. Turnover for 2016 was just over 2.5 billion dollars (AUD), the largest amount since 2002 (2.9 billion during that year when volume was 62% higher). Average dollars per bale in 2016 (excl. NZ) was $1478, the highest on the AWEX database (since ’97).
Sales resume on the week beginning the 9th of January, 2017 with selling in Sydney, Melbourne and Fremantle.
Moses & Son management and staff wish everyone that has supported us over 2016 a happy safe and enjoyable Christmas and New Year and we look forward to an extremely positive 2017 for sheep and wool. ~ Marty Moses
Market Report 24 (PDF)