Weekly Market Reports


11 January 2013

admin Macwool - Friday, January 11, 2013

WEEKLY MARKET REPORT

Week Ending 11th  January, 2013

Northern Micron Indices Comparison: Source of information: AWEX

AWEX Index 
This Week
11/01/13 
Last Sale
14/12/13
 
Change
Last Year
12/01/12
Yearly
  Change  
  17    1447n   1403  +44   1688n    -241 
 18  1360  1315  +45  1558  -198
 19  1333  1292  +41  1472  -139
 20  1259  1213  +46  1394  -135
 21  1240  1197  +43  1347  -107
 22  1211n  1167n  +44  1303  -92
 23  1189n  1147n  +42  1231n  -42
 28  613  595  +18  613  0
 30  576  551  +25  556  +20
 32  498n  476n  +22  518n  -20
 MC  704  676  +28  695  +9

 

 

 

 

 

 

 

 

 

 

 

DOUBLE DIGIT RISES CLEAN SWEEP

 

 

 

 

 

It was a pleasure to be first seller this week in Sydney with the news that Melbourne had opened 30 dearer on Tuesday. This was not only maintained, but continued across all categories throughout the week. Most of the gains were on Wednesday but small gains were recorded on Thursday with the EMI ending at a seven month high. Interestingly, the 52,063 bales offered was the fifth largest offering of the season - up about three thousand bales on same sale last year. Only 3.8% was passed in nationally, although the West Australians still found a way to pass in over 7%. This has been a good week for the market for several years now, last year the EMI rose 27 cents, this year 39 cents.
One feature of this week’s sales was the return to the top of the list by Viterra. The company, mainly grain based, was recently sold to Glencore who immediately sold the wool interests to Agrium (owner of Landmark). This sale has been subject to review by the ACCC and is expected to be now near complete and able to proceed allowing Viterra to re-enter the sale room and take stock. What we are unsure about at this stage is whether the broking and buying entities of Viterra will be merged with Landmark/ Dalgety Trading or left as is. Apart from this we believe mills in China need to purchase and it is genuine demand that fuelled the rises. Our expectations are that this will continue for at least three weeks leading into Chinese New Year in early February. It is not expected that there will be any dramatic “correction”, rather consolidation as we move into autumn.
We traded our first forward contract in some time this week at full tote to the current market and expect more to follow. For those growers interested in hedging for the late autumn/winter and spring selling we would urge serious consideration be given to this over the coming weeks. Robert Herman, principal of AgConcepts, will be one of our key presenters at our Woolstore Open Day on February 9. This will be a good opportunity to learn more about forward selling your wool clip.
This week marked the first sale for us in the “new” sale rooms. These rooms, built a few years ago when Elders and Landmark decided to leave AWEX, have caused buyers concern with two rooms operating. In an effort by AWEX to bring all sellers back together they relinquished two old purpose-built tiered rooms to join AWH sellers in the non-tiered rooms. The beauty for us is that they are literally 10 paces from our offices in Yennora. We are told to expect soon a new 5 year lease for both showfloor and sale rooms which will be a relief. Next week we will offer 860 bales on Thursday with positive expectations.

 Ag Concepts Fwd Price Trades W/E 11 January

 MPG  Maturity  High  Low
 21 23 Jan 13  1235  1235 
 21 06 Mar 13  1235  1235 
 21  24 Apr 13  1230  1230 

 20 

 22 May 13 1250  1250 
 21 21Aug 13  1200  1210 
 21 18 Sep 13  1200  1200 

1

Viterra 

6270  2

Techwool 

5847

Fox & Lillie 

4478
4

QLD Cotton

4212 5

Dalgety Wool Exports

2480 6

Modiano (Aust)

2240
7

Australian Merino Exports 

1967 8

Tianyu

1705 9

Kathaytex

1303
 

             Eastern Market Indicators (AUD cents/kg clean)

Eastern 1111 cents é 39 cents compared with 13/12/12

 

 

              AUD/USD Currency Exchange

1.0546  ê 0.0006 compared with 13/12/12

 

 

              Northern Market Indicators (AUD cents/kg clean)  

Northern 1139 cents é 39 cents compared with 13/12/12



 

 

 

 

 

 

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