Week S13: The AWEX EMI closed on 1036c, up 99c at auction sales in Australia this week. Just 23,260 bales were auctioned this week across all centres Sydney, Melbourne and Fremantle with a meagre 2.7% of the offering passed in.
Merino fleece enjoyed the depreciating currency exchange as the AUD fell to 71.3c. The EMI rose 59c (=6.3%) on the first day of selling, the largest one day rise since September 2019. The Merino MPG’s added 102-137c in the northern markets and up to 185c in the South as the market searched for a new level. The euphoria of the new market levels achieved are quickly dampened when you retrace back to the opening market in August but we should never look at a positive in a negative light.
Merino Skirtings were also keenly sought,however the final day rises were up to 80c dearer than the market levels earlier in the week.
Crossbreds finer than 28μ saw rises of 45c whilst 28 and coarser MPG’s increased by 20-30c.
Merino Cardings posted rises between 50 and 70c for the week and crossbred oddments also found some level of price comfort off a very low base.
Next week’s offering is back up to 33,239 bales with all centres offering on Tuesday and Wednesday. It is hard to gauge if the weekly rises were from genuine demand throughout the pipeline or some short term covering for prompt delivery. Whilst I sway to the latter, even the most reliable sources of market intelligence are guessing and second guessing what this market will do next.
– Marty Moses
Sign up now for the latest news from the Hilltops Area direct to your inbox.