Merino Fleece opened positively driven by a more stylish, better specified selection with superfine lots keenly sought adding 25c for the week whilst the 17.5-18.5 MPG’s pushing up 40-62c with the Certified Non Mulesed fleece lots at time making premiums well over the daily quotes.
The 17 MPG is challenging a four year high and is now trading at a 98% (13.54c) premium over the 21 MPG. The combination of unrealistic reserves and off type fleece lots made up the sub 5% pass in levels in the fleece.
Merino Skirtings opened the week on Tuesday with a bi polar performance. The best style and specified lots were up to 10c dearer whilst the poor style and high VM giving back 20-25c.
The northern skirting market posted a 20c rise on Wednesday with the poor style, high VM just maintaining the previous day’s levels. Melbourne did not follow Sydney’s trend, with the best FNF lots just holding their previous day’s levels and the poor style, high VM continuing to drop away.
The AWEX EMI closed the week on 1438c – up 24c at Auction sales in Australia this week.
This week, the offerings reduced to 31,097c, (no Sale in Fremantle), and buyers responded positively pushing all combing MPG’s up between 18 and 70c, delivering a solid clearance rate of 90.4%.
The foreign exchange rates delivered a weaker AUD against the USD delivering a 26c rise in EMI expressed in USC.
Crossbreds caught some of the renewed market energy from the merino sector on Tuesday. Whilst the well prepared lots increased by 5-10c on Tuesday, this sector could not continue the upward swing on Wednesday, posting little or no change on Wednesday.
Merino Cardings was the weakest market sector continuing its negative price trend with Sydney’s MC down 8c and Melbourne down 23c driven by reduced price levels for locks, crutchings and stains. Crossbred oddments remained irregular from a very low base.
Last week’s price rise in the Merino Combing wools allowed a number of forward positions to be transacted with 104.5t being traded. Sellers predictably increased their asking price as the week progressed.
Bidders remain cautious but still interested to cover early season sales where possible. Spring pricing broke through the recent resistance levels of 1700c for 19.0 micron and 1300c for 21.0 microns this week with 17 and 18 micron contracts trading in both near months and out until June 23 at sustainable price levels.
This week sees the offering jump up slightly to 37,994 bales as Fremantle joins Sydney and Melbourne offering on Wednesday and Thursday due to the June Long Weekend holiday on Monday.
The early market intelligence remained relatively positive for merino combing wool as the AUD continued to fall against the USD throughout the week (-2.21%). With three sales before the end of the financial year and 5 sales before the mid-year three week recess, both traders and processors need to ensure they have enough inventory in the pipeline to meet their commitments.
-Marty Moses, Moses and Son