Now at 1,265c the EMI has returned to its pre-xmas levels in AUD, however with the stronger Aussie dollar now at 71.86c (+1.4c) converted the EMI to being up 7c in US terms to close on 909USc.
Substantial falls were recorded on the opening day as buyers adjusted their purchase strategy, especially in the 17-19 micron Fleece range which represented 50% of the weekly Fleece offering, whilst the 19.5-22 micron range was least affected.
Thursday’s market found solid support and by the closing hour some MPG’s were showing some slight improvements for the day.
The support seems to be on the better style and measured lots especially in the 16-18 micron range, conversely the over long, high VM and lots containing cotted or coloured wool were erratic and generally heavily discounted.
Skirtings prices mirrored the Fleece with a devaluation of around 30c being common across the range, whilst the lower offering of Crossbred types did not help the prices as falls of 5-20c were recorded.
The Merino Carding indicator was the worst performing sector for the week with prices devaluing between 20-45c.
The falls in the M Skirting and M Carding sectors could be contributed to the increased percentage of heavy vm skirtings and cardings now being offered.
The MC sector has been on a bull run for well over 12 months and they are still performing in the 98th percentile band at the lower price levels.
The forward markets performed a little better than the auction this week with some solid bids coming from the exporters looking to secure a forward position in the front months, which are trading very close to the 19 and 21 MPG cash price.
The market now has to deal with the Chinese New Year holidays which begin on the 8th February. Mike Avery from Southern Aurora Wool stated “The lack of demand validation from China could see the auction market struggle and test exporter resolve over this period”.
I would expect that the wool market would travel generally sideways for the next few weeks, as the trade await the new price idea from China post their New Years break.
- Marty Moses, Moses and Son, Temora