Download Week 45 saw just over 38000 bales offered for sale to

(AWEX)
Week 45 saw just over 38,000 bales offered for sale to the trade. On the first day of selling the
market opened very solidly in the Eastern States with most types and descriptions selling at
levels at or above those achieved at the previous sale, buyer confidence remained high through
to the final lot. Prices generally increased by 5 to 10 cents for the day, pushing the benchmark
Eastern Market Indicator (EMI) up 5 cents to 1549 cents. The Fremantle market opened solidly
and in line with the Eastern Markets, then slowly but noticeably deteriorated as the sale
progressed. The Western Indicator dropped 14 cents as most types and descriptions were
discounted between 10 and 30 cents. The tone evident towards the end of the first day, was
apparent from the beginning of the second. Low yielding, lesser style / spec wools were hardest
hit as prices were generally reduced by 15 to 30 cents. The EMI lost 15 cents to close the week
at 1534 cents, an overall loss of 10 cents.
The skirting market was strongly influenced by vegetable matter, wools with less than 3.0% vm
were highly sought after and finished the week relatively unchanged. Skirtings with higher vm
levels struggled and these types had price decreases of between 20 and 40 cents, with wools
6.0% vm and over most affected.
The crossbred sector was resilient in a falling market with most types and descriptions
recording modest rises for the week, generally between 5 and 10 cents.
The oddment market had two solid selling days with most types and descriptions tending
slightly dearer for the week, resulting in the three carding indicators rising by an average 7
cents. Next week sees another slight reduction in quantity, currently 36,343 bales are rostered
for sale in Sydney, Melbourne and Fremantle.
(AWEX)
The rollercoaster ride continued this week as the market came off previous highs and traded slightly lower with the
Eastern Market indicator down 10ac clean/kg to close at 1534ac. This was slightly disappointing considering the
favourable exchange rate and the small offering, although some of the lacklustre market can be attributed to the
high percentage of inferior types on offer at present with both short wool and high vegetable matter very prevalent
- better types continue to hold their own. Merino Fleece ended the week between 5 and 30ac lower, however
there were big holes in the market with burry wool up to 50ac cheaper. Xbds were fully firm and cardings bucked
the trend lifting 10ac.
There is very little new information to convey this week as the status quo continues with the sensitive weekly
volatility to continue around our well established high trading range. However a slightly negative tone is developing
as it is getting harder to convince downstream participants to increase inventories and rush buying decisions over
the last fortnight or so.
Sentiment changed rapidly during the week with the high prices strangling forward demand. Low auction
volumes and a weak Australian dollar could only hold the spot prices temporarily. Pricing into the spring was less
keenly sort this week by buyers but levels remained healthy for growers looking to hedge. 19.0 August traded at
1870 but bidding interest soon waned. The same pattern appeared in the 21.0 microns with trading levels from
1415 to 1435. We expect bidding to be muted
Weekly Forward Trading Summary
prior to the auction next week but opportunities
Maturity Micron
Fwd/Strike
Prem. Kgs
May-17
19
1900
14
7,500 should arise around 1400 throughout August,
Aug-17
19
1870
10,000 September and October on 21.0. Finer wools are
Aug-17
21
1415-1435
4,000 harder to predict at the current levels. Early
Oct-17
21
1425
12,500 indications for 19. 0 have August at 1830,
September 1750 and October 1700.
Auction Forward - Indicative Base Pricing Sheet
Month
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Northern
Southern
Average
18
19
19.5
21
28
30
Indicative
Indicative
Indicative
Indicative
Indicative
Indicative
2200
2180
2150
2110
2070
2030
1990
1950
1910
1870
1830
1930
1910
1885
1860
1835
1810
1785
1760
1735
1710
1685
1780
1760
1730
1690
1650
1610
1570
1530
1490
1450
1410
1500
1490
1480
1470
1460
1450
1440
1430
1420
1410
1400
755
750
745
740
735
730
725
720
715
710
705
580
575
570
565
560
555
550
545
540
535
530
2223
2188
2206
-28
-2
-15
1939
1963
1951
AWEX Micron Price
-28
1786
-36
-14
1795
-27
-21
1791
-32
Guides
1506
1511
1509
-34
-24
-29
768
746
757
5
2
4
588
587
588
3
-1
1
Disclaim er: Indicative Prices only. This inform ation is believed to be accurate as far as possible, but no w arranty is given as to the
accuracy or reliability and no responsibility is taken by Michell, its officers, em ployees or agents, for any errors or om issions