Weekly Market Reports


15 March 2013

admin Macwool - Friday, March 15, 2013

WEEKLY MARKET REPORT

Week Ending 15th March 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

15/03/2013

Last Week

08/03/2013

Change

Last Year

16/03/2012

Yearly Change

17

1419

1442

-23

1734n

-315

18

1319

1369

-50

1580

-261

19

1286

1318

-32

1492

-206

20

1221

1255

-34

1423

-202

21

1211

1237

-26

1400

-189

22

1194

1220

-26

1349n

-155

26

826n (M)

822n (M)

-4

818n (M)

+8

28

646

637

+9

645

-1

30

594n

605

-11

580

-14

32

498n

496n

+2

508n

+10

MC

753

748

+5

722

+32

          DISAPPOINTING FALL BUT NOT PANICKING

The roller coaster ride that the market has been on since the resumption of sales in January kept going unabated this week as last week’s gains were wiped out as big losses were recorded in all three centres. Finer types took the brunt of the falls as 18.5 and finer tumbled by 40 to 60 cents (bar 17s) losing only 23 cents. In fact the 17 micron indicator was the smallest drop as 19 to 23 micron gave up 25 to 35 cents. The losses were similar in Melbourne and a little more savage in Fremantle as 30 to 45 cent reductions were the order of the day - except 23s which only lost 9 cents. The EMI has now dipped below 1100 cents, now at 1097, its lowest point since the third week of January. The trading range for the EMI has been pretty tight, 1110 to 1130 cents, since Christmas. Only on four occasions has the indicator traded over 1130 cents and on 7 days has been under 1110. The highest point was 1138 cents in the first week of February when the market jumped by 39 cents. Apart from this big rise and the market adding the same amount three weeks later, and this sales 19 cent slide, the movements either way have been restricted to 10 cents or less. The rises since Christmas have seen the EMI add 87 cents whereas falls since early January have added up to 62 cents - a 25 cent overall rise for the market.

Skirtings also took a hit but not to the extent of fleece types. The low VM types fared ok across most microns as 18 to 19s with 5 to 7 % VM fell by 10 cents with broader lots fully firm on the opening day. The final day saw increased competition to have the market firm. This sector of the market is still pretty good as “BKN” from Tottenham, Engonnia and Quambone are  making mid 500 cents and Coonamble and Gilgandra lots realising just over 600 cents. It wasn’t that long ago fleece wool was selling just above these levels! Cardings recovered half of last sales losses to add 5 cents to see the MCI at 753 cents. Locks were the major contributor to this sector’s rise as they added 10 cents with stains and crutchings up to 5 cents better. Crossbreds had a mixed week but did end in positive territory after a final day rally except for the 30 micron indicator, slipping 10 cents.

The pass-in rate of 12% was indicative of the weaker market. In Sydney 10% of the fleece was not sold whereas in Room 2 (skirtings, oddments and crossbreds) the clearance rate was over 96%. This is a reflection of the good money being paid for the lower value lines and these types not having the price fluctuations that the fleece room is encountering. This has not been the first time that big price falls for fleece wool have been off-set by very little movement in Room 2. For a long time now price volatility has been far more evident for fleece types than skirtings etc. Just when we think the market is building momentum a fall like this week certainly takes the gloss off the market. We are yet to see the market string two consecutive weeks of rises this year. Even the buyers are perplexed, with many predictions of a “solid week” turning sour by week’s end with themselves wondering how sentiment can change so quickly - even day to day. With national volumes in the mid 40,000 for the next fortnight till the Easter recess, hopes were pinned on a solid market, but the strengthening exchange rate may have been a major factor in this weeks fall. Next week has 48,000 bales on offer nationally; we’ll offer 670 bales first up on Thursday. If recent history is anything to go by, the dartboard says we could see a solid market? 

Ag Concepts Fwd Price Trades W/E 15 March, 2013

MPG

Maturity

Low

High

21

10-Apr-13

1240

1240

21

08-May-13

1240

1245

19

05-Jun-13

1290

1290

21

10-Jul-13

1190

1220

19

18-Sep-13

1300

1300

 

1

Viterra

7667

2

Lempriere (Aust)

4088

3

Fox & Lillie

2766

4

Techwool

2713

5

Modiano (Aust)

2300

6

PJ Morris

1857

7

Tianyu Wool Pty Ltd

1776

8

Queensland Cotton

1259

9

Kathaytex

1187

 

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

1097 cents ê 19 cents compared with 08/03/2013                             1.0368 é 0.0116 compared with 08/03/2013

 

Northern Market Indicators (AUD cents/kg clean)

1119 cents ê 22 cents compared with 08/03/2013

 

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