WEEKLY MARKET REPORT

Week Ending 1^st February 2013

AWEX Northern Micron Indices Comparison

CHINA WANTS OUR WOOL

It was a good week for woolgrowers this week; particularly those east of Dubbo who were lucky enough to be under falls ranging from an inch to ten inches! The market didn’t open until Wednesday due to the long weekend, and it seemed like the wait bottled up their excitement as nearly all indicators saw an immediate 30-50 cent jump with a more subdued rise on Thursday. The offering of just under 40,000 bales was the smallest offering since October and Chinese interests were keen to gather stock on the back of recent promising economic news on their domestic front.

The offering generally is free of most faults, the long dry spell has most clips with little colour, cot or vegetable fault. The stand out performer this week was carding lambswool (30-50mm range). Some of these lots sold to extreme levels - several hundred cents above expectations. These lines are nearly always not measured for length and strength as they are below 50mm and yet yesterday they were making the same money as measured lines of 60mm.

Across the catalogue though, there were no potholes and we achieved a 100% clearance which included some old lots selling 100 cents above offers 7 months ago. In Sydney this week the average micron for merino fleece was 19.55 with an average value of 907 cents greasy or $1632 a bale.

Another pleasing aspect of this week’s market was the comparative lift in forward prices. As we have said for some time, growers need to think in advance about which levels they wish to sell at and place an order. Many of our clients did this over the past few weeks and were rewarded with trades on Wednesday and Thursday at levels for May/June full tote or above this weeks close.

Final arrangements are in full swing for next Saturday’s Open Day and Ram Sale (Feb 9). The following companies will be represented: Furneys CRT, Coopers Animal Health, Bayer, Virbac, Novartis, Waratah Fencing, Shearing Supplies, Metalcorp, Woolerina and AgConcepts. Ian Simpson from Rabobank will be attending with tongs and apron keen to show his form on the BBQ. Kick off time is 10am with lunch from 12 onwards. Come and join us!

January was a record month here in the wool store with over 4000 bales received and tested. Our usual peak, or months over 4000 bales are April to July. A few things can be attributed to the increase, those being a few new clients; the dry weather has seen no disruption to shearing; and as sheep prices are so low, many sale sheep are being shorn to at least get something from the wool. The January AWTA figures showed a national increase of 12% compared to last year and YTD an increase of around 4%. The next few months will be interesting.

Next week close to 52,000 bales will be offered with Macwool offering 1400 bales on Wednesday with several cracking clips!

                                                                        Ag Concepts Fwd Price Trades W/E 01 February

Eastern Market Indicators (AUD cents/kg clean)                                              AUD/USD Currency Exchange

1138 cents é 39 cents compared with 24/01/2013                                           1.0411 ê 0.0129 compared with 24/01/2013

Northern Market Indicators (AUD cents/kg clean)

1158 cents é 29cents compared with 24/01/2013