Week 10: 07/09/2017 The AWEX EMI posted a 2c fall, closing on 1556c for the week. The 41,060 bales was met with more certainty than early last week, with 95% cleared to the trade despite the Northern market having to deal with the style adjustment from last week’s superfine offering.
The 16.5-18µ fleece was hardest hit with falls between 40-50c experienced in the north and 15-27c in the South. The 19-23µ fleece saw small rises despite the AUD testing 80usc a number of times during the sale days. Skirtings were well supported resulting in a firm market on the best style lots 18µ and finer, and all other lots with up to 5% VM posting 20c gains whilst the heavier burr were 10c dearer. Crossbreds posted a solid result for the week with rises of 5-15c across the crossbred MPG range. Cardings were fully firm posting 3-6c rises across the selling centres.
44,281 bales will go under the hammer next week across the three selling centres. Whilst the Wool market seems to have found a really good new price level this week. There is some apprehension emerging in world markets as concerns of the North Korean nuclear missile activity gained full attention of the world leaders and the press. Discussions of trade embargo’s to pressure the offenders has the world on fiscal tender hooks so It was surprising that more forward business has not been done under these circumstances. The underlying strength in the wool market seems to be improving week by week however the “big question” remains when is the right to commit to a forward price, and the answer is just before the elusive but inevitable price drop happens. I personally don’t think the current forward price has been around or above these levels ever.
Mike Avery from Southern Aurora Wool reports a quieter week on the forward markets, with exporters looking for confirmation of stability at these high levels ahead of better supply into the early spring and summer. Trades were limited to 21µ MPG contracts in October at 1560c and December at 1520c (> 95 percentile). The 19.0µ MPG contract traded in 2018 with growers achieving 1800c for both January and February and 1765c for April ‘18. Exporter interest in the New Year fine wools diminished as they weaken through auction Wednesday and Thursday.
~ Marty Moses