Weekly Market Reports


14 December 2012

admin Macwool - Monday, December 17, 2012

WEEKLY MARKET REPORT

Week Ending 14th December, 2012

Northern Micron Indices Comparison

AWEX
INDEX

This Week
07/12/12

Last Week
30/11/12

Change

Last Year
08/12/11

Yearly
Change

17

1403

1419

-16

1651n

-248

18

1315

1333

-18

1509

-194

19

1292

1293

-1

1426

-134

20

1213

1230

-17

1356

-143

21

1197

1210

-13

1320

-123

22

1167n

1182n

-15

1243n

-76

23

1147n

1157n

-10

1106n

-13

28

595

602

-7

613

-18

30

551

551

0

555

-4

32

476n

475n

+1

518n

-42

MC

676

669

-23

673

+3

MERRY CHRISTMAS!

The market for the final sale of the calendar year did what we thought - finished at around the previous week’s levels. The market was a touch cheaper, the EMI down 14 cents to 1072, due to a few factors conspiring against it. History tells us that after a big rise, such as last week, the next sale can be in a “correction” mode as was the case this week. Also buyers waded through the largest national catalogue since April (55,300 bales) with the exchange rate now seemingly stuck at 105 US cents. These factors weighed heavily on the market on the opening days in Sydney and Melbourne as the EMI shed 5 cents on each day. Thursday saw the Sydney and Fremantle markets firm up to give a positive signal for the recommencement of sales as Melbourne fell away even more. Nearly all indicators lost 10 to 20 cents except 17.5s down 25 and 19s just 1 cent off. We sold on Thursday and struggled to see how some indicators were lower. One grower in particular had fleece lots 20 to 40 cents clean better than the indicators. These lots averaged 1.96 vm, 20 micron, 39 nkt and, most importantly, a low mid-break of 18. Many other fleece lines looked 10 to 20 cents better than the indicators making us wonder where AWEX sources their quotes!

Skirtings also initially suffered from the “correction” of the previous sale as the 5% to 8% VM lots slipped 10 to 20 cents with the broader microns most affected. The better length and low VM, ) were rock solid and finer types (28 and down) were quoted 5 to 15 cheaper - not a bad result considering this sector was the biggest weekly offering for 5 years - 22% of the national catalogue.


The market did finish on a softer note, but the recovery since October to see the market at a 6 month high and show-floor talk has given us plenty of optimism for the second half of the season trending dearer despite a ridiculous exchange rate and Europe technically in recession. AWTA testing data shows a slight decrease in wool tested up till the end of November with total wool offered less by 2.5% (23,300) to date when compared to 12 months ago - something the buyers and mills are acutely aware of. China still dominates the market taking 70%, but 5% less than a year ago. India (8%) is just ahead of Italy (6.5%) with the Czech Republic next. Taiwan, the USA, Malaysia and the UK are all importing less, down between 20 to 40%. Big increases included Egypt, up a massive 586%, Spain up 100% and the powerhouse of 25 years ago, Japan, taking 38% more than 12 months ago. Greasy exports made up 87% while scoured and carbonised almost 7% each. Buying figures are not the same as 6 months ago as Viterra and QLD Cotton have dropped down the list. Techwool Trading is No1 (10%) with Lempriere, Fox & Lillie and Viterra all securing 7 to 8%, with the top 10 exporters  buying 66% of the clip. That just about wraps it up for the opening 6 months or the year. Don and all the staff wish all our clients a very merry Christmas and wet and happy New Year. Our next wool sale should be on Wednesday, 9th January. Till then, all the best to everyone. 

         

                   

Ag Concepts Fwd Price Trades W/E 14 December

MPG

Maturity

High

Low

21

23-Jan-13

1200

1200

21

24-Apr-13

1200

1200

21

21-Aug-13

1180

1180

21

11-Dec-13

1165

1165

             

1

QLD Cotton

5861

2

Techwool

5098

3

Fox & Lillie

4552

4

Modiano (Aust)

2948

5

Kathaytex

2577

6

Chinatex (Aust)

2234

7

Dalgety Wool Exp.

1948

8

PJ Morris

1896

9

Lempriere (Aust)

1895

                       

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

                Eastern 1072 cents down 14 cents compared with 06/12/12                           1.0552 up 0.0082 compared with 06/12/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1100 cents down 9  cents compared with 06/12/12

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