Weekly Market Reports


15 June 2012

admin Macwool - Friday, June 15, 2012

  WEEKLY MARKET REPORT

Week Ending 15th June, 2012

Northern Micron Indices Comparison: Source of information: AWEX

 

AWEX
INDEX

This Week
15/06/12

Last Sale
08/06/12

Change

Last Year
16/06/11

Yearly
Change

17

1399n

1458n

-59

-

-

18

1311

1333

-22

2073n

-762

19

1259

1289

-30

1769

-510

20

1222

1256

-34

1575

-353

21

1228

1254

-26

1514

-286

22

1212n

1239

-27

1458

-246

23

1185n

1223n

-38

1318n

-133

28

624n

629n

-5

691n

-67

30

578n

581n

-3

632n

-54

32

485n

485n

0

578n

-93

MC

600

626

-26

812

-212

STATUS QUO

The market’s relentless march southward continued unabated this week as most micron indicators recorded a double digit fall over both selling days. Doom and gloom looks to have gripped the buying trade as business has slowed to a trickle and the light at the end of the tunnel is becoming dimmer and dimmer all the time. This week’s 25 cent fall in the AWEX EMI to 1054 has now extended the run of consecutive day’s falls to 12 - the longest losing streak in nearly ten years. With Fremantle losing 30 cents this week to 1082 all regional indicators as well as the EMI (both AWEX and in US cent terms) are now all under 1100 cents. The high pass-in rate over the past six weeks (May having the highest monthly passed in rate since AWEX took over market reporting 20 years ago) also has lead to the % of re-offered lots climbing to new levels, this week making up 17% of the total offering - the highest in 2 years.  Even with a little support for the low VM types early on the opening day and improved interest for better style lots late on Thursday (when we sold) the market lost ground with the 17 micron and finer indicators taking the brunt of the losses to the tune of 60 cents and higher with 17s now under 1400 cents for the first time in 20 months. All other indicators retreated by 20 to 40 cents with types containing colour and cott attracting larger discounts. The ultra-fine sector of the market seems to be in recovery as we reported a few weeks ago. The Wool Factory from Horsham in Victoria sold 3 lots this week with 1 bale, certified 1PP, (11.6-0.1-74.6, 69mm-39nkt) making a second highest seasonal price of 20,600 cents bought by Lempriere Australia. Two other bales of theirs (a 12 micron and 12.6 micron) made 15,000 and 9000 cents respectively. Talking to the Lempriere buyer in Melbourne, none of these bales have yet been sold to mills or processors, rather better to take a wait and see approach till demand improves and sell at a profit rather than take a huge loss. These ‘special’ bales could be in “stock” for up to 18 months before a sale is made!

Skirtings continued in the same vein as fleece types with burry lots giving up 30 to 40 cents. The better style and low VM types did see somewhat of a late rally on Thursday edging in sellers’ favour. It looks as though the volume of lots infested with heavy cott, colour and jowl seems to be less and less thus discounting is not as savage as a few sales ago. Cardings took another hit as big falls on the opening day were negated by a solid to sellers’ market on Thursday. Locks finished the sale 35 cents off the pace as crutchings were 20 cheaper and stains 10 cents lower to have the MCI down to 600 cents. Crossbreds had a mixed week as a dearer market in Melbourne (up to 10 higher) saw prices in Sydney ease by up 5 cents.

With the falling market some growers have taken the opportunity to lock in portions of their clip. To date all forward prices locked in range from 1235 to 1260 cents, a 10 to 40 cent premium already. If considering locking some in don’t hesitate to contact us as forwards now have dipped below 1200 cents. Talk of the market at its bottom is hopefully right for next week.  

                   

Ag Concepts forward price trades W/E June 15

MPG

Maturity

High

Low

21

22-Aug-12

1220

1220 

21

19-Sep-12

1200

1190

21

17-Oct-12

1215

1215

21

31-Oct-12

1210

1210

21

28-Nov-12

1195

1190

21

12-Dec-12

1190

1180

21

20-Feb-13

1180

1170

21

20-Mar-13

1180

1170

21

24-Apr-13

1180

1165

21

22-May-13

1175

1150

 

1

Viterra Wool

3857

2

Techwool Trading

2702

3

Fox & Lillie

2432

4

Lempriere (Aust)

1855

5

PJ Morris

1184

6

Williams Wool

1180

7

Australian Merino Exp

1113

8

Victoria Wool Processors

953

9

Michell Australia

792

                       

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

                Eastern 1054 cents ê 25 cents compared with 08/06/12                       0.9966 é 0.0014 compared with 08/06/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1070 cents ê 31 cents compared with 08/06/12

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