Weekly Market Reports


15 July 2011

admin Macwool - Friday, July 15, 2011

WEEKLY MARKET REPORT

Week Ending 15th July 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
13/07/11

Last Week
08/07/11

Change

Last Year
14/07/10

Yearly
Change

17

2384n

2400n

-16

1239

+1145

18

1964

1996

-32

1155

+809

19

1668

1666

+2

1045

+623

20

1493

1484

+9

930

+563

21

1439

1423

+16

922

+517

22

1390n

1386n

+4

906

+484

23

1266n

1282n

-16

892

+374

26

851 (M)

875n (M)

-24

615

+236

28

694

680

+14

462

+232

30

616

618

-2

405

+211

32

565n

560n

+5

359

+206

MC

801

797

+4

629

+172

WE’RE NOT DONE YET!

A reasonable finish to wool sales as fears of another tough week had abated by the end of selling on the second day. Talk of a 30 to 40 cent fall rang true from the opening lot on Tuesday, but buyers seemed to warm to the task as a recovery of some sort had been staged when we sold midway through the day. Even though the market was cheaper, the outcome was far better than what was predicted earlier in the day. 20 to 22s only lost 5 to 10 cents, except for 21s which posted a 3 cent gain. Finer types varied with some better 17 to 17.5s pushed higher by Italian orders. However, the lower style and tender lots dragged 16.5s back 60 cents; 17, 18.5 and 19s  slipped an average of 15 cents and the 18 and 23 micron indicators losing 25 to 35 cents. The recovery kept going on Wednesday as 18 and finer were unchanged with all other indicators 5 to 15 cents higher. Even with the EMI recording only a 2 cent rise it was a great way to go into the three week winter recess. As the table above illustrates, all medium micron lots staged a recovery with 17, 18.5 and 23s down 10 to 15 with 18 and 16.5 microns hardest hit. We still had buyers booking up passed in lots on Friday morning - a good sign of genuine enquiry with talk of plenty of wool booked up for August and September shipment. This augers well for a good start to sales which will recommence on Wednesday 10th August providing no economic bad news comes out of the Northern Hemisphere in the next three weeks that may dampen demand.

Skirtings held their ground on the opening day bar the lots carrying heavy cott and colour again not well sought after. The final day’s offering came under renewed buyer pressure with light vm types under 5% 10 to 20 dearer with the straight burrier types closing 10 cents dearer. Cardings had an up and down week as fine locks less than 19.5 micron lost 20 cents only to claw back 10 cents on the final day of sales. Stains and crutchings also added 10 cents to last week’s quotes, this despite buyers having to contend with the largest weekly offering of cardings in Sydney for 9 years (3100 bales-15% of the week’s offering). Crossbreds also had a good week with 28 and 32 micron indicators up by 5 to 15 cents while 26 and 30 microns fell up to 5 cents.

A well earned rest now for buyers and brokers alike as we move into the annual three week winter recess. For us here at Don Macdonald & Co it has been an extremely hectic period since our first sale in early May. In the eleven weeks till this week’s sale we’ve offered over 11,500 bales to the trade with a clearance of 92%. The next six months and indeed beyond hold much hope for a sustained wool market at these levels or, dare we say, even higher?  Supply is still extremely low and demand is good - a situation that won’t change in the for-seeable future. Let’s hope badly needed rain comes before our next report on 12th August.                                                            AgRisk FDIC Indicative Quotes 15/07/11

20

21

22

AUCTION

1495.5

1444.0

1396.5

Aug-11

1480

1441

1375

Oct-11

1390

1351

1285

Dec-11

1350

1311

1245

Feb-12

1330

1291

1225

Apr-12

1285

1246

1180

Jun-12

1238

1199

1133

Aug-12

1228

1189

1123

Oct-12

1195

1156

1090

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

10576

2

QLD Cotton

3992

3

Modiano

3551

4

Williams Wool

3314

5

Fox & Lillie

3277

6

Techwool Trading

2384

7

AS Gedge

2191

8

Lempriere (Aust)

1757

9

PJ Morris Wool

1474

                       

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

                Eastern 1361 cents (é2) compared with 07/07/11                         1.0631 ê 0.0111 compared with 07/07/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1410 cents (é1) compared with 07/07/11

 

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