WEEKLY MARKET REPORT

Week Ending 15^th November, 2013

AWEX Northern Micron Indices Comparison

TREADING WATER

The market looks to have been a little confused about which direction to go as the pattern of little movement up or down continued this week. One pleasing aspect was that the barrier of 1100 cents was broken as the EMI crept up to 1102 cents, a modest 4 cent rise for this sale. For the past seven weeks the EMI has been trading in a narrow price band of just 38 cents -, a high of 1127 in mid October to a low of 1089 at the end of September - a swing of only 3.5%.

Fleece prices were pretty static this week as just 2 micron indicators recorded double digit rises, 20 and 21s up 10 to 15 cents. The finer the micron the smaller the increase, 18.5 to 19.5s up to 5 cents better. 18 micron and finer were quoted slightly cheaper due mainly to a style adjustment from the previous week’s superior selection. This small price reduction was not evident in our catalogue, as the two cracking Mudgee clips we offered performed well. Some of these lots looked up to 40 cents clean better than the quote. It wasn’t only our fine types that out-performed the indicators as numerous medium micron lots with up to 3% VM also looked up to 40 cents higher than where the indicators finished. The pricing structure for fleece is now split in 3. Types over 40nkt with up to 3% VM and best top-making styles are attracting good premiums, while the mid tier types (around 35nkt with 50% mid-breaks) are holding their own while tender, high mid-break lots look at least 100 cents lower than the indicators. Skirtings again had a solid if not spectacular sale where the broader micron types carrying 5 to 8% VM lots added 10 to 15 cents to last sale’s quotes, as the finer, low VM and better style types remained rock solid throughout the sale. Crossbreds reversed last week’s cheaper trend with rises of up to 10 cents helped along by the downward shift in the exchange rate, at one point as low as 93 cents. Cardings had a mixed week as an opening day rally led to a fall on Thursday to see a 1 cent drop in the MCI to 811 cents. Locks were the culprits, down by 5 cents as stains and crutchings finished the sale rock solid.

Next Friday will be polling day for woolgrowers to vote in the new board of directors for AWI. Last week’s “The Land” had a comprehensive article on the applicants for the board and preferred choices for directorship and number of directors. Votes need to be lodged by Wednesday, 20^th November, and who you vote for is your personal choice. Growers should adopt the recommendation NOT to increase the board to 10 from 7. A bigger board leads to extra overheads and more risk of splinter groups and more politics.

As nearly everyone would have heard by now we are opening a CRT branch in Brewarrina, trading as Macdonald Rural CRT. The grand opening is being held next Friday, 22^nd November. Weeks of work and planning have gone into this new venture and we would like all in the area to attend. Stuart Rae from our re handle dept. will be managing the shop ably assisted by well known local, Michael “Moses” Hertslet. Reps from CRT and other rural merchandise companies will be in attendance, Next sale sees the biggest volume for 8 weeks - 48,000 bales - but market should be solid.                   

Ag Concepts Fwd Prices at 15 November

Main Buyers (This Week)

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

1102 cents é  4 cents compared with 08/11/2013                                  0.9351 ê 0.0128 compared with 08/11/2013

 Northern Market Indicators (AUD cents/kg clean)

1126 cents é  3 cents compared with 08/11/2013