Weekly Market Reports


16 March 2012

admin Macwool - Friday, March 16, 2012

WEEKLY MARKET REPORT

Week Ending 16th March, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
16/03/12

Last Week
09/03/12

Change

Last Year
17/03/11

Yearly
Change

17

1734n

1695n

+39

2510

-776

18

1580

1545

+35

2176

-596

19

1492

1467

+25

1692

-200

20

1423

1386

+37

1360

+63

21

1400

1364n

+36

1282

+118

22

1349n

1318n

+31

1263

+86

23

1280 (M)

1277 (M)

+3

1223

+57

28

645

625n

+20

724

-79

30

580

565n

+15

670

-90

32

508n

503n

+15

630

-122

MC

722

731

-9

817

-95

                                                                                                                                                                                                                                               

MARKET RISES BUT WILL IT CONTINUE?

The market held its breath as talk of a rise came to fruition on the back of reduced quantities on the Eastern seaboard and the exchange rate dropping as news of good economic recovery and jobs growth in the US strengthens their currency against all other major trading partners. The smaller volumes that are on offer may benefit growers that plan to sell their clips over the next three weeks as receivals into brokers’ stores are still sluggish - especially in the south of the state and wool coming out of the far west and north. With only 41,000 bales up for grabs pressure was always going to be on the buyers to secure what they needed to buy. The market opened strongly as all microns and types were pressured with vigor as 17.5 and finer added 10 to 15 cents with all other indicators jumping 25 to 35 cents. A big clearance saw only 5% passed in across the three selling centres. The final day’s sale wasn’t as frantic as medium lots were up to 10 cents dearer with 17.5 and finer leading the way with increases of 25 to 30 cents. The market did slip away in Fremantle with losses of up to 20 cents for 18 to 18.5s. As we have said in the past, how the market finishes in the West could determine how the market will open the following week.

Skirtings took the lead of the fleece room as healthy rises saw all types and VM levels chased to the last lot on Thursday, with the only exception being lots with heavy cott and jowl. Middle micron (18 to 20) B and C fault types opened with a 20 cent rise as some heavier VM lots added 30 cents. This pattern of buying filtered through to the second day as the trade added another 10 to 20 cents to the previous day’s quotes for identical types. As we commented earlier, more and more cott and jowl are appearing in pieces lines. The discounts for these faults are big and will only increase as the volume of these faults grow as the “big wet” dissipates and the long grass dries out and sheep pick up more VM. It will become more and more important to remove cott and jowls from the pieces lots as a 50% price discount is in place for lots with a bit of colour and lots with colour, cott and heavy jowl. Cardings took a breather as the MCI was the only indicator to record a negative shift losing 9 cents to 722 cents. Progressive falls on both days for locks to the tune of 20 to 30 cents led to this fall. The other sectors of the carding group, stains and crutchings, were solid to 10 cents higher. Crossbreds continued their good run of the past month or so with 26 to 30 micron pushing ahead 15 to 20 cents as the broader types added 5 cents to last week’s quotes.

Planning is well under way for our official shed opening next Saturday night, 24th March. It promises to be a huge night as numbers look to be around 400, the largest gathering of wool growers in Dubbo for over 10 years. Apart from the guest speakers and fashion parade a small charity auction will be held where a garment from the parade will be auctioned. Due to the large number of guests attending, a free courtesy bus will be doing a run back into town from about 10.30/11.00pm for those wishing to enjoy them-selves more than the allowable legal driving limit! The taxi ride out is around $15 to $20. It should be a very entertaining evening and, of course, will go ahead no matter what Mother Nature throws up on the night! The national catalogue drops to an average of 42,000 bales over the next three weeks to Easter so we can only hope pressure will be on exporters to secure wool and the soft ending to Fremantle won’t be a precursor to next week as we offer 750 bales late on Wedenesday.   

                  

1

Viterra Wool

5033

2

Techwool Trading

3158

3

Dalgety Wool

2940

4

Fox & Lillie

2662

5

Chinatex (Aust.)

2482

6

Williams Wool

2199

7

Modiano (Aust)

2146

8

Lempriere (Aust)

1634

9

QLD Cotton

1467

                       

 

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

                Eastern 1239 cents é 23cents compared with 08/03/12                           1.0465 ê 0.0129 compared with 08/03/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1270 cents ê 25cents compared with 08/03/12

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