The AWEX EMI closed on 1754c, +31c at auction sales in Australia last week.
A total of 94 per cent of the 34,080 bale offering was cleared to the trade in the last sale before the three week mid-year recess.
This assisted the market back up last week’s AWEX EMI bounce, as widespread support from exporters pushed the market upward steadily until the last lot.
Interestingly, this week’s offering is 23% down compared to the sale last year which, no doubt, will be a point of focus with the exporters and processors, and will support the wool production forecast figures made in April.
Merino Fleece in the northern markets shot up 20-45c, whilst the Southern markets could only manage a 2-22c increase. Fremantle was 23-30c dearer.
Merino Skirtings followed the lead of the fleece.
Merino Cardings posted 29c rises in the north, 51c in the south and 9c in the west whilst Crossbred fleece posted rises of 5-25c on a limited selection.
The result for the week was almost perfectly scripted to allow exporters to sell forward into a better market environment over the recess.
The three week recess is normally the time when exporters visit their customers in China, Europe and India to discuss the next 3-5 months purchases and match price to supply.
I am sure the drought in NSW and QLD will be the leading topic of conversation.
Sales will resume in Week 6, week beginning Monday the 5th of August.
Some telling statistics:
• EMI 1754, Down 11.5% YOY
• EMI USD 1222, Down 16.4% YOY
• AUD 69.66, Down 5.6% YOY
-Marty Moses, Moses and Son