Conversely Merino Skirtings held their ground in defiance; however there was some price pressure evident on the heavy VM lots.
The AWEX EMI closed the week on 1,268c at Auction sales in Australia this week.
The downward correction, a substantial 17c, was mainly experienced on the opening days of the sale with some consolidation and slowing of the trend evident on Thursday.
The key contributing factor was the strengthening AUD against the Greenback which ranged from 70.71 USc to 72.54 USc. This resulted in our Chinese customers taking a wait and see approach for purchasing the Aussie clip.
After an early estimate depicting a 50,000 bale offering for the week only 47,000 bales made the rostrum.
The correction also elevated the pass in rate which pushed through 12% this week, however the Northern region only passed in 5.7%.
Sydney’s stylish Merino offering attracted better support and as we have seen in the most stylish and highest specified lots felt less pain this week.
Most Merino categories lost up to 32c with the Superfine categories holding relatively firm and the fine and medium categories taking the brunt of the pain. Conversely Merino Skirtings held their ground in defiance; however there was some price pressure evident on the heavy VM lots.
Crossbred categories were 10-15c cheaper for the week and like the Merino Skirtings, Merino Cardings were solid on the previous week’s levels.
The forward markets found a level towards the end of the week as bidders refocussed on the forward market platforms. The early autumn bid is around 15c under spot prices, with the key activity remaining in the 21.0 MPG.
Bids at 1,300c and above into the Spring give us an indication that the market should find its feet quickly after this reaction to world market changes.
Next week offers 42,631 bales, as the total bales offered to date remains 9% down year on year.
-Marty Moses, Moses and Son, Temora