Weekly Market Reports


17 May 2013

admin Macwool - Friday, May 17, 2013

WEEKLY MARKET REPORT

Week Ending 17th May, 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

17/05/2013

Last Week

10/05/2013

Change

Last Year

18/05/2012

Yearly Change

17

1307

1283

+24

1543n

-236

18

1230

1194

+36

1378

-148

19

1197

1151

+46

1338

-141

20

1143

1108

+35

1305

-162

21

1132

1097

+35

1296

-164

22

1128n

1087n

+41

1261n

-133

26

805n (M)

777n (M)

+28

918n (M)

-113

28

585

583

+2

650n

-65

30

546

538

+8

576n

-30

32

462n (M)

465n (M)

-3

482 (M)

-20

MC

743

745

-2

658

+85

PHEW…ANOTHER GOOD RISE!

Last week’s rise was more than consolidated this week as another sub 40,000 bale national catalogue (the third in a row) and, finally, the exchange rate that is now under parity looks to have spurred buyers on to push the EMI 30 cents higher following on from last sale’s 26 cent rise. Early sales in the week on Wooltrade gave us a good lead that the market might record some good gains again this week. As was the case last week passed in lots from two weeks ago were snapped up at good increases from their passed in prices. Double digit rises across all micron categories in the three centres has medium indicators, from 19 to 23, all back above 1100 cents - even 24s are now at 1016! Sadly, however the finer indicators, although rising, are only just above these levels with 17 to 18.5s ranging from 1307 to 1209 cents. All three regional indicators rose 26 to 30 cents as rises were 25 to 55 cents for all fleece indicators.

This week’s offering of 34,600 was the smallest for 8 months and the third smallest for the season. The pass-in rate of just 2.5% on Thursday resulted in the best daily clearance for over 2 years with just 4% passed in for the week. All fleece types met with good competition as discounts for VM, colour, cott and tenderness shrunk to minimal levels, bar the super-fine lots that received good competition if the specs and style were right, but discounted if off style. The fall in the currency played its part as a 3.5 cent fall this week was the largest sale-on-sale fall since December 2011. It was pleasing to see several lots make over 1000 cents, something that has been missing for a while. The sad thing is though these lots were all under 17 micron where-as last year types out to 18.5 were making this money! This sector of the market certainly needs a boost.

Skirtings followed the fleece room lead as most types and descriptions added 20 to 30 cents with a definite emphasis on the 17 to 19 micron range up to 5% VM. The pleasing aspect of this sector is the low VM boosting prices and lack of cot and jowl in clips when compared to a year ago when nearly all clips carried these large discountable variables due to the wet summer of last year. Western clips would be carrying about half their normal VM levels, this due to no spring rain. Cardings had a negative sale as the opening day’s gains were lost on Thursday when locks and crutchings were unchanged as stains lost 10 cents to see the MCI lose just 2 cents. Crossbreds edged higher as 28 to 32 microns were up to 5 cents better as 25 to 27 microns added up to 20 cents.

Another good week and once again, without Viterra featuring in the top 10, as was the case last week. Techwool led the charge with 4100, Fox & Lillie 3400 and Modiano with Lempriere 2700 each as Qld Cotton not as active as they have been recently. The small quantities look set to continue as Fremantle are in a run of 1 day sales as the 2 centres on the Eastern Seaboard selling over two days for the foreseeable future with Fremantle not selling in sale 49 and 51, these week’s quantities anticipated to be well under 30,000 bales which should keep the pressure on buyers. This coupled with the best exchange in a year could auger well for the next few weeks. One can only hope this will be the case.

Sharpy returns from a two week hiatus in the USA next week. With the market going so well, one wonders if more time off could be had, just to keep the market plugging along! He might be under some pressure when he steps up to the rostrum next Thursday when we offer 815 bales. Let’s hope next week’s rain forecast is a bit more fair dinkum than this week’s droplets.           

Ag Concepts Fwd Price Trades W/E 17 May, 2013

MPG

Maturity

Low

High

21

10-Jul-13

1100

1100

19

21-Aug-13

1160

1160

21

18-Sep-13

1100

1110

21

20-Nov-13

1110

1110

 

1

Techwool

4126

2

Fox & Lillie

3476

3

Lempriere (Aust)

2800

4

Modiano (Aust)

2643

5

PJ Morris

2249

6

Chinatex

1901

7

Australian Merino Exp.

1392

8

Queensland Cotton

1314

9

Michell Australia

858

 

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

1022 cents é 30 cents compared with 10/05/2013                                 0.9881 ê 0.0355 compared with 10/05/2013

 

Northern Market Indicators (AUD cents/kg clean)

1037 cents é 28 cents compared with 10/05/2013

 

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