AWEX EMI closes in positive territory on back of strengthening currency

Wool-3

Merino Cardings posted an average fall of 9c on the eastern sea board and fell 18c in Fremantle.

The AWEX EMI closed in 1339c up 2c at auction sales in Australia last week  following on from an unexpected downward price correction, primarily caused by the news out of China of operation restrictions being forced on coal fired power generator plants, the expectations for this week were not brilliant.

Despite this, the AWEX EMI managed to firstly close in positive territory and secondly clear 88.8%.   Currency strengthened by .7c which supported the market strength during the week.

Merino Fleece saw good support for sub 18.5µ; best style; low VM lots continue to strengthen as buyers for Europe and India join with the Chinese Topmakers and Australian Based export Traders to create solid support. Good – average style fleece lots showed little change from last week especially in the medium and coarser MPG’s. The Finer MPG’s were possibly elevated by the offering of well specified, NM and CM fleece wools that were certified to Integrity Schemes.

Merino Skirtings opened where prices left off last week, and maintained throughout the week with some positive prices pressure on the best style skirtings 18.5µ and finer.

Crossbreds combing wool continued to struggle at levels that are already embarrassing low. Demand was almost non-existent for anything that was not well prepared, good length and/or low VM.

Merino Cardings posted an average fall of 9c on the eastern sea board and fell 18c in Fremantle. Despite this exporters reported good demand and were perplexed at the lower MC.

Crossbred Oddments remain variable with the finer XB lambs < 24.5µ remaining reasonably priced, 25-26.5µ attracted substantial discounts and anything coarser than 27.5 was difficult to sell.

42,755 bales are to be offered this week and with no Public Holidays to deal with the Tuesday and Wednesday sale day rotation recommences.

We wait with baited breath on the NSW Government news of when Sydney Sale rooms can return to some normality for sale staffing. The NEW lock down laws are being assessed as this report goes to Market.

Unfortunately the Melbourne selling centre will remain under the current restrictions until such times as their infection rate reduces substantially.

With next week’s Market Intelligence a bit murky as China come out of their National Day Holiday.

My early intel indicates the possibility of a slightly weaker market sentiment at worst for merino combing wools however with China sharing the purchasing with Europe and India it may hold firm on this week’s price basis. Crossbreds to continue to come under negative price pressure and cardings should remain firm.

~ Marty Moses, Moses and Son

UPCOMING SALES / EVENTS
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