Week 23: 07/12/2017

The AWEX EMI pushed up another 23c to close the week on 1699c at auction sales in Australian this week. 49,030 bales went under the hammer with a creditable 97% clearance to the trade. Buyers entered the week scrambling to purchase wool with reports of extreme demand coming in the form of business inquiry from our traditional export destinations and the result was a new EMI record exceeding the previous by 10c.
The Merino MPG’s posted increases from par-23c with the key activity in the 19-22μ.
Merino Skirtings followed the corresponding fleece trends, with emphasis from the buyers focussed on the FNF types that may qualify for a substitute fleece types.
Merino cardings were extreme, with the average centre increase for oddments achieving 50c.
Crossbred posted a much needed 30-55c increase over the week with the 28MPG posting the largest increase to allow a much better clearance in this category. Crossbred lines that were well classed were more noticeably attracting price premiums as we struggle to shake off the “fair average quality” mentality installed over the past few years.
Next week is the final sale before the 3-week Christmas recess with 52,292 bales going under the hammer. It is envisaged that the market should maintain this week’s levels, however, anywhere in this range for merino types would be a great x-mas present.
Mike Avery- The forward market maintained momentum as the spot auction found a base for most microns. Growers took advantage of buyer interest in the first half of next year. The 19.0 micron index cracked the 2000 barrier in February with hedgers locking in at historic levels. 21.0 microns traded above 1625 in March out to 1595 in May.
Buyer interest remained solid all week but on limited quantity with concerns over medium term risk at these price levels. Focus for the coming week will be on finalising pre-Christmas export orders. We expect buyers to continue to add to their first quarter inventory giving growers good opportunities into the first and second quarters.
The first indication of interest in the spring next year came through this week. This was based on early yarn enquiry that translated to index levels of 1800 for 19.0 micron and 15.00 for 21.0 micron.
Today I penned the market report from Port Elizabeth in South Africa at the IWTO Round Table Conference. As you can imagine, there is so much optimism in the industry – this event has attracted a record number of attendees from 11 countries. I enjoyed listening to many speakers today on Wool Sustainability and Retail Solutions, doing a bit of networking and taking notes to bring home for discussions with staff and clients. ~ Marty Moses

Weekly Market Report S23 – PDF