Merino Carding indices increased by 9-13c across the selling centres.
The AWEX EMI inched 3c higher in sales held in Australia this week.
Closing the week on 1440c the EMI experienced a solid week, with slight increases in the superfine categories, a slight reduction in the fine category and a slightly cheaper medium Merino category – which was a pretty good result, given the 1c rise in the AUD exchange with the USD.
The market result was one of confidence, especially on the well specified lots displaying high strength characteristics, along with other premium measurements contributing to enhanced processing performance.
A number of the locally sourced wool rose above 1500c; greasy Skirtings struggled to maintain last week’s levels. The finer lots were least affected, whilst the Merino Carding indices increased by 9-13c across the selling centres.
Finally crossbreds posted a solid performance, after a few months of weekly falls with renewed interest driving the prices up 10-20c. Maybe a case of low price being the cure for the low price.
Next week’s offering of almost 47,000 bales will be offered with the expectation of another strong result.
Forward Market Report –
Michael Avery says, “This week’s forward market reflected the value of having hedging levels in the market as sentiment ebbed and flowed. The AUD/USD traded in a wide band and the auction market moved around on variations in quality and quantity of supply. Both buyers and sellers continue to battle with the option of certainty of price, against the chance of missed opportunity. This was particularly noticeable in the finer microns with trading ranges this week in the prompt months varying by 20 to 30 cents. The current curve reflects the concern of the trade on the ability of the market to hold medium to longer term at these historically high levels. It is anticipated that trading ranges will remain volatile in the near term.
On the fine wools we expect pre-Easter demand on 19.0 to deliver a trading range in March and April of 1700 to 1735. May and June could see a wider range of 1660 to 1700 reflecting the current time risk. On 21.0 micron we could see a band from 1390 to 1410 pre-Easter and 1370 to 1400 as we move to seasons end. New season levels were patchy throughout the week although it was pleasing to see trades in 18.0 and 19.0 microns. Both these trades were over the 85 percentile band for their micron category which is an excellent starting point hedge 15 months forward”.
-Marty Moses, Moses and Son, Temora