Weekly Market Reports


20 January 2012

admin Macwool - Friday, January 20, 2012

WEEKLY MARKET REPORT

Week Ending 20th January, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
20/01/12

Last Sale
13/01/12

Change

Last Year
20/01/11

Yearly
Change

18

1508

1558

-50

1953

-445

19

1430

1472

-42

1544

-114

20

1349

1394

-45

1145

+204

21

1305

1347

-42

1103

+202

22

1276n

1303

-27

1058

+218

23

1227 (M)

1237 (M)

-10

1008

+219

26

755n

763n

-8

752

+3

28

597

613

-16

579

+18

30

531

556

-25

509

+22

32

481n

518n

-37

446

+35

MC

696

695

+1

688

+8

NEW YEAR’S PARTY WELL AND TRULY OVER

New Year’s celebrations certainly came to an abrupt halt as the wool market gave up practically all of last week’s advances. The bad finish that Fremantle had last Thursday, and our prediction that this could set the trend for this week, was unfortunately spot on. The EMI lost 26 cents compared to the 27 cent rise of the opening sale of the year. With the A$ on the rise the fall in US$ terms equated to just 15 cents after an opening gain of 76 cents. The finer microns fared the best as 17.5 and finer lost 10 to 25 cents. 18 to 19.5 micron fell 35 to 50 cents - identical to the rises of the opening week. The middle microns were mixed, as 20 and 21s lost 40 to 45 cents falling more than the previous sale’s gains, whereas 22 and 23 micron types retreated by 10 to 25 cents after rising 60 to 70 cents at the opening sale. This week’s damage was done early in the sale as Melbourne opened the sale with a 9 cent fall on Tuesday. All three centres were on line on Wednesday with further falls sending the EMI 14 cents lower. Thursday saw a better tone with buyers reporting a solid to dearer market by up to 10 cents for most categories. The AWEX report however showed finer lots dearer, with 19 micron and broader up to 5 cents off with 18 to 18.5 down 10 to 15 cents. This sale was the third largest national offering of the season (the biggest since August). The offering consisted of 30,000 bales of fleece (52%) a jump of 6% on the previous sale.

In defiance to the fleece room, skirtings held onto their gains of last week with all descriptions and VM levels staying rock solid or tending sellers’ favour by up to 10 cents. Cardings had a mixed week to see the MCI add 1 cent to sit at 696 cents. Locks gave up 20 to 25 cents while crutchings added 20 cents to their quotes while stains were unchanged. The volume of XB wool on offer did drop away (20%), but still saw the market retreat over all sectors. 28 and finer lost 10 to 15 cents while the broader microns of 30 and up came off 25 to 35 cents.

Disappointing to see the market drop after such a promising start the previous week. It was hard to pinpoint any real reason for the fall, from the rising A$ to a big weekly quantity to dare we say, Chinese New Year celebrations. A drop in quantity to mid to low 40,000s may help the market over the next few weeks. Futures were trading up to 10 cents dearer late today. This, as well as Fremantle’s Thursday market, can be a good guide to the fortunes of the next sale. We offer 480 bales on Wednesday of next week with the market hopefully to stabilise. 

                        

                                                                               Agrisk FDIC Indicative Quotes 20/01/2012

20

21

22

AWEX

1343.0

1299.5

1275.0

Feb-12

1325

1286

1220

Apr-12

1310

1271

1205

Jun-12

1298

1259

1193

Aug-12

1266

1227

1161

Oct-12

1195

1156

1090

Dec-12

1173

1134

1068

Feb-13

1138

1099

1033

Apr-13

1117

1078

1012

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

8898

2

Techwool Trading

4623

3

QLD Cotton

3693

4

Fox & Lillie

2941

5

Chinatex

2791

6

G Schneider (Aust)

2459

7

Williams Wool

2218

8

Modiano (Aust)

1659

9

Lempriere Aust.

1641

                       

 

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

                Eastern 1190 cents ê (26) compared with 12/01/12                                             1.0397 é 0.0095 compared with 13/01/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1224 cents ê(26) compared with 12/01/12

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