Week 16: 19/10/2017
The AWEX EMI pushed up 2c at auction sales in Australia this week closing on 1568c. The increase to 45,792 bale offering was received with mixed emotions and on the fine and superfine MPG’s, price increases of 5-45c were experienced. Buyer competition on the 16-17µ categories was frantic, however on the other Merino MPG’s coarser than 19.5µ, the increased offering moderated the buyer activity with a slight retracement in price of up to 36c on the 21 MPG. Despite this, the pass in rate was relatively low at 6%, as buyers take stock of the YTD increase in wool offered now pushing towards an increase of 13% compared to a similar time last year.

The primary reasons are undoubtedly the dry June to October periods throughout eastern Australia coupled with historic high price. Reports from our wool purchasing customers indicate that there is an emerging resistance building from the retail back to top-makers of the price of the raw wool. However, I anticipate that between November 17 and March 18, Australia may see a reversal in bales offered to fall back to par or below last year’s levels as per the Wool Production forecast for Australia, which may explain the current buyers’ bullish behaviour in the auction room.

Skirtings followed a similar experience to the fleece counterparts, with the low VM best style lots making near fleece prices with the Merino Cardings adding 20-37c across the centres. Once again Crossbreds struggled to maintain last week’s price levels with falls between 5 and 30c posted across the centres. It is important to note the well prepared lots in the crossbreds attracted better competition and price than the lots poorly prepared and skirted.

Next week signals the arrival of AWI’s Annual Report Package and notification of the AGM. To ensure a strong and transparent future in our wool levy investment, I strongly recommend that the 3 Directors you vote for are Paul Cocking, Collette Garnsey and Don MacDonald. A vote for these three dedicated and skilled candidates will ensure the emphasis is placed on a restoration of corporate integrity and governance, expedite the repair of the disconnection with the wool industry bodies, unfiltered on-farm research on the areas of profit and growth areas for the wool industry and responsible expenditure of the wool levy. I cannot emphasise enough that your vote should be immediately registered either online or returned by post supporting Collette, Paul and Don or in the event you wish to place your proxy vote, DO NOT lodge this with the Chairman or AWI. I implore you please send the Proxy to myself, Don Macdonald or Paul cocking. I am happy to take calls on this matter to expand on the reasons behind these recommendations.
~ Marty Moses

Weekly Market Report S16 – PDF