The AWEX EMI closed the week on 1943c +7c, finally posting a rise after a 6 week stint of straight losses. As we now move into the one week Easter recess, the positive sentiment could not have come at a better time. The showcase at the Sydney Royal Easter Show sale held up relatively well, given the continual degradation of the style and specifications of the northern selling centre. In US$ terms, the EMI rose 11c to close on 1398c – 27c lower than the same time last year.
Merino Fleece saw the buyer support improve this week, especially in the better style Merino Fleece and Skirtings, however it was the Southern Merino MPG’s that contributed to the EMI’s success.
Merino Skirtings were well supported with the best style and specified skirts challenging the low style fleece prices.
Crossbreds were the star of the week, once again, as there seems to be an insatiable appetite for the crossbred sector, pushing 26 and 28 MPG’s to new record territory.
Cardings continued to struggle with losses across the all centres.
Forward Price Report from Michael Avery (Southern Aurora Wool): The spot auction market closed for the Easter break still uncertain of direction. Having looked to find a base Tuesday with most qualities lifting, the majority eased into Wednesday on the vagaries of selection and a stronger AUD.
Forward trading was again sparse. There was very little interest from sellers in the medium term leading into the season close. Growers and exporters are both uncertain of the impact of diminishing supply and equally muted demand. Buyers were looking to cover and 21.0 micron traded at cash early in the week (2250 for June). Most interest from the selling side was focused on longer term hedging. With Crossbred prices at record levels growers were able to get cover at the 90th percentile and above for 28.0 out 12 months. December traded at 1010 and March 2020 at 995. On the merino qualities exporters and processors continue to bid the near term steadily even with the current down trend holding. Selection risk is still evident maintaining interest levels near cash out to June. Spring and Summer levels are discounted 100 to 150 cents equating where new long term export business can be written. 19.0 traded June 2020 at 2150. From an historical point of view this is in the top 10% of prices for the last decade. Taking a more recent view it is in the top 25% of prices for the last four years of price data.
We expect interest to remain steady on the forwards next week in the absence of spot auctions. Volume will be determined by the off shore demand over the recess.
As previously mentioned, next week is a recess week, sales will resume on the week beginning Monday 29th of April. ~ Marty Moses