WEEKLY MARKET REPORT

Week Ending 15^th February 2013

AWEX Northern Micron Indices Comparison

         STILL NOTHING TO WORRY ABOUT

It was almost a case of deja vu for this week’s wool sale as the market drifted lower to the tune of 11 cents - 1 more cent than last week’s fall. Despite the market falling in a similar pattern to the previous sale, positive signs began to emerge on Thursday with a change in sentiment as the market was dearer in all three centres. The rebounding markets on the Eastern seaboard sent a good vibe across the Nullabor as their indicators had the best rises on Thursday to see their market post a 5 cent rise for the week - a good lead into where the market might go next week. Chinese New Year always brings with it uncertainty as to whether all mills will be chasing wool or staying on the sidelines for the week. A few buyers indicated good signals for a good market as the few financial problems that had interrupted buying patterns last week were behind everyone and all “LC’s” (letters of credit) had been opened and it was business as usual. This was not quite the case despite the enthusiasm from a few about the market’s fortunes this week. The week kicked off in Launceston, holding their stand-alone sale on Tuesday, this being their largest sale in 5 years - 8700 bales. There is always a “freight component” factored in to buying Tasmanian wool as the wool has to go to Melbourne to de dumped and containerised. This freight component saw a 10 to 25 cent reduction across the board. The cheaper Wednesday market in the three mainland centres gave way to a dearer sale on Thursday. The wash-up of the up and down sale resulted in all indicators losing 5 to 10 cents from 18 to 23 micron with the finer microns (17.5 and lower) giving up 20 to 30 cents. Top price for the week was 2980 cents for a 13.5 micron bale in Melbourne as we will see increased volumes of superfine lots onto the market over the next two to three weeks.

Skirtings mirrored the lead of the fleece room as the opening day’s losses were mostly recouped on Thursday. Bellies looked to have ended the sale a touch cheaper whereas most descriptions of pieces were quoted as unchanged when compared to the previous sale. Cardings edged forward with the MCI adding 7 cents to 756. Locks finished 10 to 20 cents up as crutchings looked 10 dearer while stains were unchanged. Fine crossbreds lost 5 cents while medium types posted a 5 cent rise, while broader lots were quoted as solid.

If recent weeks are anything to go by, next week’s sale should be dearer. Since sales resumed in January, the average weekly offering has been 50,000 bales nationally, this being 10% above the season average to date. These bigger offerings haven’t spooked buyers as the exchange rate is a little softer and demand is holding. Year on year offerings are line ball with the current season just 2000 bales up on the previous season with growers taking advantage of a rising market with 9.4% passed in - down 3% on the year before. The Woolstore open day was a great success attended by 150 growers and 5 studs making sales with growers having a look at how the store runs. Macwool sells first up next Wednesday with a catalogue of 840 bales. Let’s hope for a dearer market!

      Ag Concepts Fwd Price Trades W/E 15 February

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

1117 cents ê 11 cents compared with 08/02/2013                                         1.0362 é 0.0046 compared with 08/02/2013

Northern Market Indicators (AUD cents/kg clean)

1144 cents ê  9cents compared with 08/02/2013