The AWEX EMI closed on 1170c up 19c at auction sales in Australia this week. The welcomed confirmation of last week’s 23c rise we now see the EMI almost back to the season opening number at 1176c. 95.2% of the 43,688 bale offering was cleared to the export participants.
Business conditions seemed to have firmed up with the increased buying pressure initially instigated from Chinese interests, which in turn activated a slight increase in orders as well from Italy and India.
It is felt the reason for the upswing in the EMI is principally to secure some pre-christmas supply, allowing deliveries to the Chinese mills around the Chinese New Year holiday in early February.
The magnitude of the markets performance whilst seemingly ordinary should be seen in the light of the currency exchange increase, which has seen the AUD increase from .646 to .659 against the USD, and the EMI in USD increase by 19c this week after a 24c rise last week.
Merino Cardings were also oblivious to the price increases in merino fleece and merino skirtings categories. Each centre posted minor movements each day, amounting to a 3c increase in the Eastern states, and a 6c increase in the West.
XB Oddments remain at or near historic low prices, whist selected lots in the XB lambs and weaner category occasionally shop some promise of a slight recovery.
Commentary: This week’s offering is projected to be 49,134 bales in Melbourne, Fremantle and Sydney, which is a designated Superfine sale. I get the feeling that despite next week being the largest offering in 8 months, we will see a continuation of the support seen over the past few weeks.
|~Marty Moses, Moses and Son