Weekly Market Reports


16 December 2011

admin Macwool - Friday, December 16, 2011

WEEKLY MARKET REPORT

Week Ending 16th December, 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
16/12/11

Last Week
9/12/11

Change

Last Year
16/12/10

Yearly
Change

18

1509

1469

+40

1631

-122

19

1426

1400

+26

1306

+120

20

1356

1328

+28

1034

+322

21

1320

1299

+21

1008

+312

22

1243n

1221n

+22

961

+282

23

1160n

1138n

+22

904

+256

26

754n

756n

-2

634

+120

28

613

610

+3

484

+129

30

555

558

-3

436

+119

32

518n

533n

-15

405

+113

MC

673

678

-5

651

+22

FROM DOOM AND GLOOM TO CHRISTMAS CHEER

It’s always good to see that our bold predictions in our weekly market reports are somewhere on the money most of the time. We pride ourselves in supplying correct and factual market intelligence to keep our woolgrowers in the loop as to price trends and concise marketing decisions. Sometimes we do get it wrong - when the market takes an unexpected turn for the worse. Last week was a good example, as our prediction of a flat or cheaper market was thankfully wrong. Buyer sentiment changed over the weekend with plenty of enquiry coming out of India, a national catalogue less than expected(11%) and a softening exchange rate all augured well for a strong end to the year before the three week Christmas recess. All three centres recorded good rises as most of last week’s falls were negated by a 21 cent jump in the EMI and a 36 cent increase in Fremantle. All indicators rose by 20 to 45 cents in Sydney. The best result was the 7 cent rise in Melbourne on Thursday as a stand alone selling day, allaying fears of a tapering market. Sydney hosted it’s third smallest so far this season - just 10,011 bales with only 383 lots of fleece on the opening day (one of the smallest on record). The EMI has finished the year on 1189 cents, 158 cents higher (15%) than the same week 12 months ago with the peak at the end of June at an amazing lofty level of 1425 cents.

Skirtings opened the sale on a softer note as better style and low VM types finer than 19 micron gave up 20 cents with the broader burrier lots remaining unchanged. The tone was much the same on the final selling session as again the burrier types came under more buyer pressure pushing these 10 to 20 cents better across all micron categories with 18s and finer irregular and 19 micron and coarser under 5% VM and lower solid. Cardings opened the sale on a solid note as locks added 5 to 10 cents with stains and crutchings unchanged. Unlike other sectors, a cheaper trend set in on the final day as locks gave up the previous day’s advances; stains lost 20 cents and crutchings were unchanged. The MCI is now at 673 cents, this an unfavourable level to the peak of late June of 841 cents! Crossbreds remained basically unchanged for 30 micron and finer as movements were subtle, just a few cents either way. The coarse types, 32 and broader, fell 15 cents.

A good way to end the year and, from what buyers are reporting, the market will open strongly when sales resume on Wednesday 11th January. Thanks to everyone for their support during the year under what turned out to be some very trying circumstances. All the best for the festive season and we look forward to a promising 2012.       

 

                                                                               Agrisk FDIC Indicative Quotes 9/12/2011

20

21

22

AWEX

1330.5

1301.5

1221.5

Dec-11

1340

1301

1235

Feb-12

1327

1288

1222

Apr-12

1300

1261

1195

Jun-12

1255

1216

1150

Aug-12

1223

1184

1118

Oct-12

1152

1113

1047

Dec-12

1130

1091

1025

Feb-12

1095

1056

990

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

4920

2

Fox & Lillie

4217

3

QLD Cotton

3987

4

Viterra Wool

3587

5

Williams Wool

3487

6

PJ Morris

2099

7

Chinatex

1375

8

Aust. Merino Exports

983

9

AS Gedge

619

                       

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

                Eastern 1189 cents (é21) compared with 09/12/11                                                0.9899 ê 0.0366 compared with 09/12/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1217 cents (é13) compared with 09/12/11

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