Wk 36 09/03/2017 The AWEX EMI closed the week on 1522c, adding 22c for the week.
In what seems like a tentative opening compared to the previous weeks, the market opened slightly flat on the medium Merino categories, whilst the fine and superfine lots attracted better support. With the assistance of a favourable currency exchange rate, Thursday’s sale revealed more urgency in purchasing. This was more evident in the southern markets, who have been losing touch with the Northern MPG’s. The progressive increase of lots containing medium and high VM content saw this sector come under some pressure.
Skirtings held firm this week, appearing slightly detached from the fleece market whilst carding posted steady rises each day.
Crossbreds had their best week in many months – with rises between 10 and 40c. As the quality of the clip deteriorates (a standard seasonal effect), and the demand for best style and specified lots seems unable to be satisfied; the style basis may soon challenge the micron basis.
Next week’s offering of 43,000 bales signals the start of the lower weekly offerings, despite the almost clear run for shearing. One would assume that most of the held stocks of Merino wool would be sold or lotted for sale by now, so quantity and more-so the quality of the offering comes under scrutiny.
The forward market opened the week tentatively, with few offers and even fewer bids on Monday. Tuesday saw a few contracts trading at encouraging levels, with a number of fine wool contracts trading. The opportunity to lock in your wool at record high returns is quite real and (in my view) should be explored sooner rather than later.
Market Report (PDF)