Weekly Market Reports


17 August 2012

admin Macwool - Friday, August 17, 2012

WEEKLY MARKET REPORT

Week Ending 17th August, 2012

Northern Micron Indices Comparison: Source of information: AWEX

 

AWEX
INDEX

This Week
17/08/12

Last Sale
10/08/12

Change

Last Year
18/08/11

Yearly
Change

17

1327n

1368n

-41

-

-

18

1240

1288

-48

1798

-558

19

1140

1189

-49

1588

-448

20

1076

1121

-45

1382

-306

21

1076

1117

-41

1339

-263

22

1072n

1114

-42

1286

-214

23

1071 (M)

1123 (M)

-52

1166 (M)

-95

28

550

579

-29

690

-140

30

506

529n

-23

628

-122

32

424n

455n

-31

573n

-149

MC

517

561

-44

702

-185

NOT A DISASTER BUT CLOSE AGAIN!

The Olympics may have ended but the wool market has continued on its merry way down. This week’s sale was a mirror image of last week with a big opening day fall followed by a steadier final day. Talk of the market losing only 20 cents unfortunately was not on the money as falls on Wednesday ranged from 15 to 20 cents for 22s and 17 micron up to 80 cents for 16.5 and finer. All other indicators - 17.5 to 21- gave up 25 to 35 cents. Thursday saw the market follow last week’s lead with, although a cheaper tone, not as pronounced as the opening day. Most indicators lost 10 to 20 cents with 22s the exception, backing off as much as 30 cents, adding up to weekly falls of 40 to 50 cents for 17 to 22 microns and 80 cents for 16.5 and finer.  Once again any lot with a discountable fault was caned. Cott, colour and VM in many lots led to token bids on some types with a 50 cent discount between a FNF and 2% VM lot – this, in a normal market, only a 10 to 15 gap. Grower resistance to the falling prices grew as the passed-in rate in the fleece room rose to over 26%. The EMI fell by another 46 cents to sit at 949 - below 950 cents for the first time since October 2010. This two week fall of 113 cents (-11%) is the largest two week decline since October, 2008. This falling streak now extends 7 days, starting on the last day of Sale 1, now up to 128 cent decline.

Skirtings initially fell sharply on the opening day before staging some sort of recovery on Thursday. Finer low VM styles opened 10 to 20 cheaper with the broader burrier lots 30 to 40 cents off. By Thursday, when we sold, sentiment in room 2 had changed to see the market quoted as “unchanged’ with the odd finer lot off a touch. We benefited from this upbeat mood to only pass in 1 lot in room 2. The carding market continued to struggle with double digit falls on both days. All types and descriptions of locks, crutchings and stains dropped in value by 40 to 55 cents. The MCI is at 517 cents, down 93 cents these last two weeks. Crossbreds repeated the pattern of their merino counter-parts with big opening day falls followed by softer drops on the final day. Losses amounted to 20 to 30 cent falls across the board.

The small national quantities aren’t having a bearing on the market. The lack of wool in WA is remarkable. After the three week winter recess Fremantle had a 2 day sale last week, a 1 day sale this week and no sale next week, and this coming into the peak Spring shearing season, not only over there, but also on the Eastern Seaboard! Already national volumes are back by 32,000 bales for the same period compared to last year. The only bright news is the growers that locked in forward prices are well and truly benefitting from this weak market. The cover they took is now around 150 cents or better than the current market. If you didn’t lock any in it’s not too late to enquire about giving yourself some protection against the market falling further. Just 38,000 bales on offer on the Eastern seaboard next week with some punters talking the market at or very near its bottom. Let’s hope their crystal ball is on the money.      

                   

Ag Concepts forward price trades W/E 16 August

MPG

Maturity

High

Low

21

19-Sep-12

1110

1060

21

17-Oct-12

1060

1060

21

31-Oct-12

1070

1070

21

19-Jun-13

1050

1050

               

1

Viterra Wool

3349

2

Queensland Cotton

3238

3

Fox & Lillie

2365

4

PJ Morris

1944

5

Williams Wool

1567

6

Lempriere (Aust)

1527

7

Dalgety  Wool Exports

1468

8

Techwool Trading

1200

9

G Schneider (Aust)

838

                       

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

                Eastern 949 cents ê 46 cents compared with 09/08/12                          1.0485 ê 0.0124 compared with 09/08/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 961 cents ê 46 cents compared with 09/08/12

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