Weekly Market Reports


1 March 2013

admin Macwool - Friday, March 01, 2013

WEEKLY MARKET REPORT

Week Ending 1st March 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

01/03/2013

Last Week

22/02/2013

Change

Last Year

01/03/2012

Yearly Change

17

1448

1439

+9

1717

-269

18

1368

1374

-6

1565

-197

19

1302

1336

-34

1447n

-145

20

1226n

1249

-23

1364n

-138

21

1218n

1237

-19

1334n

-116

22

1202 (M)

1219 (M)

-17

1313 (M)

-111

23

1185n (M)

1194n (M)

-9

1285 (M)

-100

28

626n

624

620

627n

-1

30

581n

581

0

569n

+12

32

492n (M)

487n (M)

+5

502 (M)

-10

MC

758n

755

+3

726n

+32

      CURTAIN FALLS ON NEWCASTLE

History was made this week as the curtain fell on sales in Newcastle. For some years now the viability of Newcastle functioning as a profitable selling centre has been in question as the four sales in the Spring and their  only Autumn sale was nowhere near enough to justify the $200,000/ year cost of renting show-floor space (52,000 bales were offered there this season as against 150,000 in  the 1999/2000 season). Finally the decision was made to move all sales to Sydney, thus alleviating the rostering problems that follow a Newcastle sale. Not all brokers sold in Newcastle and, inevitably, a backlog of wool was waiting for buyers in Sydney the next week. This is not to say that there may not be weeks of “super-fine” offerings, but all brokers will have the chance to sell in these sales and perhaps evening out quantities of specific types. As Don alluded to last week, hangovers were the order of the day on Thursday, in and out of the sale room as a farewell function was held on Wednesday night for 200 people. All sectors of the trade, old and new, were represented with the boss of Barberus, a major super-fine buyer and processor, flying out from Italy for the occasion. Wool sales commenced in Newcastle in 1928 under strong opposition from Sydney brokers which, at the time, were receiving 360,000 bales from north and west of Newcastle. The allocation of sales was hard to come by even up to the start of WW2 but, post war, things settled down and sales in Newcastle were a regular feature of the selling program. It quickly earned a reputation as the premier selling centre for super-fine wool in the country so much so that the Italians supported and often paid seasonal records for reputedly some of the best wool not only in Australia, but the world, and is still regarded in the same vein today.

As far as the market fared it was no fairy-tale ending to sales in Newcastle. The market opened well enough on the back of a cracking selection, but fell as the week progressed to see the EMI lose 10 cents to close at 1109 cents. Super-fine lots went okay, with 17 and finer 5 to 10 cents up with some specialty types quoted up to 100 cents better. The top price was only 2000 cents for a 12.9 micron weaner lot. 17.5 to 18 micron were in buyers’ favour to the tune of 5 cents as the medium indicators took the brunt of the losses (18.5 to 22 drifting 20 to 35 cents). Skirtings followed the lead of the fleece room, gaining up to 40 cents on Tuesday to see the finer, better style and length types hold their values while 19 micron and broader with 5 to 8% vm backtracked to post losses of 10 to 20 cents for the sale. Cardings tracked dearer for the sale as locks and stains added 5 to 15 cents with crutchings quoted as solid for the week. The MCI has risen 250 cents (48%) since August. One of the buyers we spoke to “early” on Wednesday night said a lot of locks made 700 cents!  In the X-bred sector, the small offering -9%- was hard to quote but looked just in sellers’ favour.

Buyers are confronted with the second largest sale of the season (57,000 bales next week) with Fremantle to offer their biggest catalogue of 13,000 bales in 10 months. This, coupled with AWTA figures released this morning, showing a 4.5% increase in bales and weights cored compared to last season will give the Chinese plenty of ammunition to put the brakes on the market. We sell last on Thursday with 1500 bales on offer - it could be a tough week.            

 

Ag Concepts Fwd Price Trades W/E 1 March, 2013

MPG

Maturity

Low

High

21

24-Apr-13

1200

1200

21

10-Jul-13

1200

1200

 

 

1

Viterra

6421

2

Fox & Lillie

3754

3

Lempriere (Aust)

3067

4

Tianyu Wool Pty Ltd

2926

5

Queensland Cotton

2632

6

Techwool

2600

7

Chinatex (Aust)

1973

8

New England Wool

1004

9

PJ Morris

804

 

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

1109 cents ê 10 cents compared with 21/02/2013                             1.0280 ê 0.0040 compared with 21/02/2013

 

Northern Market Indicators (AUD cents/kg clean)

1137 cents ê  9 cents compared with 21/02/2013

 

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