Crossbreds performed a little better than previous weeks with price gains between 5-22c measured for the week
The AWEX EMI closed the week at 1297c, 6c higher at auction sales in Australia.
The mere 30,000 bales (the second smallest for the season) were met with reasonable support on the opening day, producing an unconvincing flat result.
Thursday’s result was more palatable with some upward pressure coming from a wider range of buyers especially in the southern markets.
Merino Fleece rounded out the week largely unchanged with some small upward movement in the 18-20µ range, whilst the 21-23µ fleece remained unchanged in the North, whilst the Southern MPG’s attempted to close the previous week’s price disparity between the centres. (Note the 21 MPG is now 1404 in both centres)
The AUD closed unchanged for the week around the 72usc mark however, the weekly movement kept the Buyers guessing as to its destination. Whilst the fleece movements were limited to less than 10c, Skirtings finished the week 10-20c higher on the back of the smallest Skirting offering for the season.
Crossbreds performed a little better than previous weeks with price gains between 5-22c measured for the week whilst the Carding sector continued to post solid rises with both MC indices straddling the 1,100c barrier.
Next week the offering increases slightly to 33,466 bales, and as the season draws to a close offerings are set to close between 9 and 10% down for the season.
Widespread rain across the southern part of the continent will further delay any shearing underway so I expect the smaller offerings coupled with the low AUD exchange rate to peg this market in the short term. Of course any large offerings or currency break outs will rock the boat.
Michael Avery from Southern Aurora Wool reports “Interest in the forwards were spread across the months and good volumes were traded in the prompt (front) months.
June and July traded above cash multiple times Tuesday, Wednesday and Thursday at 1,410 and 1,390 respectively as traders sort to cover their prompt commitments. Interest in the spring lifted as the Auction consolidated its previous gains.
Bidding improved in all microns with spring levels rising 5 to 10c on last week. The 19.0 micron index was bid out to March 2018 and we executed a September 2017 contract at 1400 cents.
Put Options traded in the spring but exporters are looking for fair value premiums with the risk of currency and demand on their minds for the late spring.
Should the AUD hold steady we expect export demand to hold at this week’s traded forward levels. Indicative levels for the 21 micron are Sept 1335; Oct 1325; Nov 1315.
We expect demand on the 19.0 micron forward contract to be maintained at the 1400 level out to early 2018.”
-Marty Moses, Moses & Son, Temora