WEEKLY MARKET REPORT

Week Ending 12^th December, 2014

AWEX Northern Micron Indices Comparison

MARKET HOLDS ON … MERRY CHRISTMAS!

Exporters managed to find a bit of Christmas cheer, but only just, as the EMI added 5 cents to finish the year at 1059. In US terms we saw a loss of just 1 cent to 883. This week’s pattern was similar to the past month as a sluggish start was replaced by a strong finish, especially in Melbourne and Fremantle, these centres adding 9 and 16 cents to their regional indicators. The market in Sydney struggled as far as its fleece component was concerned. The only positives were the 21s and broader gaining up to 5 cents as all other microns lost up to 10 cents. Had it not been for the good performances in room 2 the Sydney indicator would have lost more than just 1 cent. Despite the lacklustre fleece sector, there were some positives as lots with the right specs, again, were keenly sought after. A non-mulesed clip from Yeoval saw some fleece lots attract a 45 to 60 cent premium (1 lot yielding below 60%). A clip from Packsaddle, north of Broken Hill, received premiums of 10 to 30 cents - all with 2% vm, most lots 27 to 32kt and a few also lower than 60% yield. A nice reward for the growers that have the types that can command some sort of premium.

Skirtings had a steady sale as the more fancied low vm >5% and finer than 21 micron struggled and finished in buyers’ favour.  The burrier types, <8% remained solid throughout the sale. Cardings continued on their merry way as all types and descriptions added 5 to 10 cents across the board. Melbourne had an outstanding sale in this sector adding 21 cents  to its MCI, now at 829, with the other centres now both over 800 cents - a great level for these types. Crossbreds warmed to the drop in currency as most types benefitted by 5 to 10 cents. The massive offering of 14,000 bales (24% of the national catalogue) was the largest since the corresponding sale in 1996 when the 3 centres offered 133,000 bales. After 6 weeks of rises, 28 to 30 microns are now at 12 year highs, again great levels for these types.

Another year gone as the market struggled to maintain the levels of 12 months ago. The first quarter of the year saw the EMI lose 138 cents (1131 to 993), the lowest point of the year in the first week of April. Since then the EMI has floated in a trading band between 1000 and this sale’s level of 1059. The types suffering the most have been in the fine fleece sector, under 19 micron, losses ranging from 100 to 173 cents for the year with the gap between 16.6 and 18.5s half of what it was 12 months ago. The gap from 19 to 22s is about the same - 50 to 60 cents. Skirtings, although not at levels seen earlier in the year, are not far behind. Cardings are at identical prices or just better while crossbreds have been the star performer up by as much as 70 to 90 cents. The drop in currency to now below 83 cents has certainly played its part. This and other factors like Japan’s recession, Europe’s snail-paced recovery, China’s economic growth to slow to 5% for the second half of this decade, the good recovery in the US and even Australia’s stalling growth and, last but not least, a good (wet) break in the weather as well as good old fashioned “supply and demand” will all have some say in how the market performs in 2015. Don’t forget the Macdonald Rural CRT Christmas party at the shop in Brewarrina from 3pm next Thursday, 18^th. Our opening wool sale should be Thursday 8^th, January, until then all the best for the festive season.

Ag Concepts Fwd Prices at 12 December

Main Buyers (This Week)