WEEKLY MARKET REPORT

Week Ending 19^th June, 2015

 AWEX Northern Micron Indices Comparison

SHREWD VALUING PAYS OFF!

Here at Macdonald Wool we pride ourselves on the rapport and relationships we have built up with the buyers and exporters stretching over the past 30 years. As far as buyer-broker relations go anywhere across the country, we would be right up there as we have mixed with buyers from (in one case) school friends to social dinners and sporting events to international conferences here and overseas. This tight understanding was no more evident than this week as our market intel was spot on that the market would again be cheaper. We took this on board when valuing and achieved a total clearance.

The market got progressively cheaper as the sale went. By week’s end losses ranged from 30 to 55 cents for 18.5 and finer with the 19s and broader 60 to75 cents lower. The EMI lost 36 cents to 1320 with a similar fall in US terms, 34 cents, its indicator now 1019. Despite the pull-back in the market we did see some great results for lots with good specs. Two super-fine lots from Yass ranged from 70 to 130 cents better than their indicators with 1.6 VM average as some medium FNF types looked up to 40 cents higher than their indicators plus a few lots from Gilgandra and Bugaldie with 3% VM attracting no discount for that level of VM. What was evident was the discount growing for off types, over-long, tender, colour as well as some high mid-breaks - the gloss now well and truly gone from these types that were enjoying very small discounts up until this sale.

Room 2 looked to come out of this sale with minimal damage compared to their fleece counterparts. Skirtings were cheaper but the losses ranged from 15 to 25 cents for all styles and types with the full spectrum of VM. Prices are still good: Cobar and  Coonamble  BKN  in the mid 600 cent range with 3% VM BLS from White Cliffs making 700 cents (1349 cents clean) just 50 cents clean from what FNF fleece is making!! Losses were kept to a minimum in the carding sector as LKS and CRS gave up 10 to 15 cents while STN were firm all week. Crossbreds had an up and down sale as finer microns (<28) finished in buyers’ favour as 30s were 10 cheaper and the broader types 5 higher.

A tough sale but, as mentioned above, good market intel helped us with some shrewd valuing and growers in this sale realising that all sectors of the market (except fleece types finer than 19 micron) are at, or near, record levels and were prepared to “take the money and run” led to our 100% clearance. Chinese indent orders have slowed with a lack of any major enquiry for 2 weeks that has seen local and forward selling exporters on the sidelines but reports of renewed interest form China and India overnight holds hope for the next few sales. Also weighing on buyers was the massive lift in volumes for next week (up 38% in the space of 7 days) - double what was rostered this sale and the growing volumes for the 2 opening sales of the new season, releasing the urgency in purchasing strategies, but hopefully these lower levels attract all exporters back to the sale rooms, but we still may need a large renewal of forward and indent buying to stop the downward trend. We sell late on Wednesday with 1365 bales catalogued. Fingers crossed!!    

Ag Concepts Fwd Prices at 19 June

Main Buyers (This Week)