Wk 43 27/04/2017 The AWEX EMI dipped 11c, closing the week on 1,501c as auction sales resumed after the Easter holiday recess. From an early estimate of 58,000 bales only 52,189 bales went under the hammer on the back of a bullish closing market sailing into the Easter Holiday.
The two day sale consisted of Wednesday’s market lacking any clear exporter support, posting a 17c fall in the EMI to 1,495c. This attracted a predictable higher pass in rate of 15%. Thursday reversed this trend as the market recovered a substantial chunk of the early loss especially in the 19 and finer categories which eventually posted weekly gains.
Buyers confidence was buoyed by the quick return of interest and despite the heaviest falls posted in the 19.5-23 micron categories, there is large percentage of this category containing medium and heavy VM and are being heavily discounted. Despite this, the closing levels in this medium MPG category remains in the high percentile bands. The 17-19 MPG’s posted gains for the week more-so in the Northern offering, driven by the insatiable European appetite for lots with good specifications and style. As the week progressed the Local exporters and Chinese Top-makers were more evident in the marketplace.
Skirtings mirrored the fleece with lots containing 2% VM or less in keen demand, whilst the heavier VM lots attracting an elevated discount as the VM increased. Crossbreds and cardings had a more stable week with small and generally positive movements experienced.
Next week’s offering is back 12000kg’s to 40,785 bales and the ensuing weeks will diminish back to around the 35,000 bale mark The big news this week was the release if the Australian Wool Production Forecast which revealed a 4.3% increase for the 2016/17 season to 339Mkg, with all states increasing with the exception of Tasmania. In addition to this the First Forecast for 2017/18 was posted at a mere .04% increase to 340 Mkg. ~ Marty Moses
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