The early rally of the AUD softened the tone from the outset but good demand in the Fine microns kept the interest and forward pricing up.
The AWEX EMI added 12c in wool sales in across Australia last week.
The EMI closed on 1439c, a record high, despite the softening of the market in the medium Merino categories towards the end of the week. Surprisingly, 10.4% of the 56,000 bale offering was passed-in.
The Superfine and Fine categories continued to shine – powering ahead with rises of 30-100c posted across the sub 19mpg’s.
This has pushed the Micron basis between 18 and 21 MPG’s out to 450 in the north. Skirtings mirrored the fleece and it was common to see pieces over 1000c.
Crossbreds still struggled to find a level, however there were glimmers of hope in patches throughout the week, despite the pressure on the coarser MPG’s. Merino cardings inched ahead into new record price levels with rises from 1c to 14c measured across the selling centres, whilst the crossbred cardings had a mixed result over the week.
Just over 47,000 bales are to be offered next week, with sale day constraints in play with the Thursday Australia Day holiday restricting the offerings.
Michael Avery, from Southern Aurora Wool, reports a volatile week for both the physical and the forwards. Opportunities appeared, then vanished for buyer and seller as both sides questioned the momentum in the market.
The early rally of the AUD softened the tone from the outset but good demand in the Fine microns kept the interest and forward pricing up. This was highlighted by trades in the 18.0 micron at strong levels out to April 2018.
Demand on the Broader qualities slowed and forward levels dropped significantly. 21.0 micron traded to a high of 1450 in the early autumn is now bid around 1400. Strong levels were achieved by growers with strategic GTC orders in the market through their brokers, with season highs in both 19.0 and 21.0 microns.
The coming weeks will likely present challenges for buyers and sellers alike. Demand has been restricted by the rapid rise in prices but supply is expected to disappoint. This will likely lead to volatile market. The financial and currency markets expecting the same with the hand-over of power this weekend in the US.
-Marty Moses, Moses & Son, Temora