Weekly Market Reports


18 May 2012

admin Macwool - Friday, May 18, 2012

        WEEKLY MARKET REPORT

               Week Ending 18th May, 2012

        Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
18/05/12

Last Sale
11/05/12

Change

Last Year
19/05/11

Yearly
Change

17

1543n

1616n

-73

2408n

-865

18

1378

1455

-77

2094n

-716

19

1338

1364

-26

1739

-401

20

1305

1334

-29

1472

-167

21

1296

1314

-18

1402

-106

22

1261n

1286n

-25

1329n

-68

23

1225n

1239n

-14

1243n

-18

28

650n

651

-1

660

-10

30

576n

583

-7

594

-18

32

482 (M)

488n (M)

-6

536 (M)

-54

MC

658

682

-24

754

-96

                                                                                                                                                                                                                                                FROM BAD TO WORSE

The hopes of a stable market didn’t come to fruition as falls from the opening lots through to the final catalogue on Thursday were the order of the day. Big falls on the opening day were followed by a steadier, although cheaper market on the last day. It seems that too many external factors are weighing heavily on the market. Even the exchange rate that is now under parity, for the first time since December 2011 hasn’t helped and, if in the low 90s, may not be a factor to entice buyers. The ongoing political unrest in Europe, (especially in Greece with another round of elections in June, and the economic problems most EU countries are going through and finding it difficult to get out of) has had a detrimental effect on confidence and demand.  The slowing Chinese economy is also a worry as the necessity to purchase wool has steadied, even with the “pipe-line” empty. Finer micron indicators took the biggest hits as 18 and lower gave up 65 cents and more on the opening day, but did steady somewhat with all but 18s (-10 cents) unchanged on the final day due to a better selection. 18.5s lost 53 cents for the week while the medium indicators of 19 to 22 fell 18 to 30 cents with the broad merino types retreating 10 to 15 cents. Last week’s pattern continued on as the FNF types (although cheaper) were in most demand with the burrier lots with cott and colour being punished again with ever increasing discounts. 30 % of all fleece wool offered nationally was passed in on Wednesday, the highest for well over 12 months.

Skirtings mirrored the fleece movements as buyers savaged anything with any hint of cot, colour or jowl. A reduction of 30 cents was the order of the day as 6% VM and greater took the brunt of the falls. Thursday saw a reduced fall in the market as most of the falls were around 20 cents with some of the better length and good colour lots finding some limited support.  Cardings again lost ground as the MCI was reduced by 24 cents to sit at 658 cents.  Locks were reduced by 20 cents as crutchings retreated by 30 cents and stains fell by another 40 cents. Crossbreds escaped the week virtually unscathed as most types and descriptions quoted up to 10 cents cheaper.

A tough week by anyone’s reckoning as trading became very difficult and a wait and see approach is the order of the day for most exporters. Many re-offered lots from Sale 42 failed to sell as bids were well below the passed in price of four weeks ago. The overall passed in rate nationally was 23% - the highest since April last year. The opening day’s fall of 24 cents of the EMI was the largest single-day fall in 9 months and just to compound the bad figures the EMI at 1131 cents is at its lowest point since January 2011, before the market took off on a 5 month “bull-run”. In some good news Macwool was the largest seller in Sydney this week with a catalogue of 2110 bales consisting of 419 lots of which 366 were sold which represents a passed in rate of 13%. Fremantle held its first of a series of 1 day sales this week offering just 7,500 bales with a massive 41% passed in! Even with less than 35,000 bales on offer next week, hopes of a solid market look as far off as a good fall of rain. Macwool sells next Wednesday with 1065 bales catalogued. Good luck!

 

Ag Concepts forward price trades W/E May18

MPG

Maturity

High

Low

21

Jun-12

1290

1290

21

Jul-12

1250

1250

21

Aug-12

1260

1250

21

Sep-12

1260

1250

21

Oct-12

1250

1240

21

Nov-12

1220

1220

22

Dec-12

1230

1210

21

Feb-13

1200

1200

1

Fox & Lillie

3038

2

Techwool Trading

2802

3

Viterra Wool

2535

4

QLD Cotton

1888

5

AS Gedge (Aust)

1585

6

Lempriere (Aust)

1517

7

Chinatex (Aust)

1441

8

Kathaytex

1311

9

Williams Wool

932

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

                Eastern 1121 cents ê 34 cents compared with 11/05/12                        0.9942 ê 0.0168 compared with 11/05/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1144 cents ê 38 cents compared with 11/05/12

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