Wk 31 02/02/2017.The AWEX EMI reversed its previous 22c correction with a 10c rise at auction sales in Australia this week. Now sitting on 1422c, the market found new vigour as the offerings temporarily reduced to 40,188, with a 22c rise in USD terms as the currency exchange crept up slightly.
The superfine and fine Merino categories remained the hero of the wool story this week, whilst the medium categories maintained or were slightly dearer. Skirtings followed suit with the best specified and styled lots enjoying keener support.Cardings were generally a tad cheaper, with locks and crutchings slightly cheaper, stains were unchanged and the dwindling numbers of Merino lamb’s wool attracted solid rises of 20-40c.Unfortunately, Crossbreds remained in buyers favour, losing 5-20c; with the support on the coarser Crossbred indices continuing and extending its (negative) price losing streak.
Forward Report Michael Avery Southern Aurora Wool:The forward markets traded in light volume, as both buyers and sellers looked for guidance from the auction following the Chinese New Year. Fine wools continued to be in demand, with modest quantities trading out to June and prices increasing slightly in the forwards, 30 cents above last week’s levels. Demand into the spring remains sluggish, with buyers reluctant to commit at historically high levels. Risk and volatility remain high as the strong AUD looms as a concern to exporters who are looking for confirmation of off shore demand. Medium wools demand is still patchy and reflected in the lack of support in the forward months.
In a week that commenced in the midst of the Chinese New Year holiday, the performance was extremely encouraging. I feel the return to next week’s 45,861 bale offering, should be met with the sale-buyer vigour. ~ Marty Moses
Weekly Market Report 02.02.2017 (PDF)
