Weekly Market Reports


21 June 2013

admin Macwool - Friday, June 21, 2013

WEEKLY MARKET REPORT

Week Ending 21st June, 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

21/06/2013

Last Week

14/06/2013

Change

Last Year

22/06/2012

Yearly Change

17

1357

1347

+10

1422n

-65

18

1258

1247

+11

1340

-82

19

1194

1209

-15

1286

-92

20

1165

1179

-14

1242

-77

21

1165

1176

-11

1233

-68

22

1169n

1178n

-9

1214n

-45

26

850n

850n

0

-

-

28

666

663

+3

631

+35

30

623

604n

+19

593

+30

32

506n

488n

+18

495n

+11

MC

817

812

+5

601

+216

 THE BIGGEST AND THE BEST!

Our hopes that the market might be sustained were realised on the opening day of this week’s East coast only sale as Fremantle sat out this week when just 24,000 bales were on offer in Sydney and Melbourne - slightly bigger than the catalogue two weeks ago. However, the unchanged status couldn’t hang on through to the second day. The IWTO conference held in Italy last week may have woken the Italians from their summer siesta as fine types under 18.5 made reasonable gains over the two days adding 10 to 25 cents, with “HILLCRESTON/PINEHILL” offering the finest bale at auction since March 2011. Two bales were appraised as 1PPs measuring 12.1 and 12.6 selling for 18,000 and 11,500 cents. Another bale from the same grower at 13.5 microns made 4,800 cents. A pleasing result and maybe some light at the end of the tunnel, but still a long way to go for growers of 18.5 and finer. Medium wools didn’t fare as well with types up to 2%VM being unchanged on the opening day, as lots burrier than 2% back by 15 cents, the 19 to 23 micron indicators fell 10 to 20 cents on Thursday. A sudden shift in the currency looked to have played its part, but it wasn’t a rise that did the damage, with a sharp drop in the exchange rate spooking the buyers just in time for those selling on Thursday - including us! The currency has certainly been on a roller-coaster ride over the past 7 days. Last Thursday it was under 95 then quickly rose to above 96 before settling under 95 early in the week. That was ok till it took a big dip on Wednesday night to 92 cents which sent the middle microns down on Thursday as waiting to see where the exchange rate will settle is now a daily ritual.

Once again skirtings bucked the cheaper trend of some of their fleece counterparts. By sale’s end, 19 micron and finer finished in sellers’ favour with keen competition from all sectors pushing broader types 10 to 15 cents better. Cardings again added to their values as locks posted 10 to 15 cent rises with most emphasis on 18 and finer with stains and crutchings rock solid all sale. The drop in currency didn’t bother the crossbred sector as good gains on both days saw the broader end (30 microns and coarser) benefit from a 20 cent lift with the finer types in sellers’ favour.

Our delegate has arrived home safe and sound, if not a little weary and jet-lagged, from the IWTO conference in Italy. Not a great deal to report on other than Europe still in an economic hole and demand very quiet from them, but a detailed report will feature in our Winter newsletter out in July. This week marked a milestone for Macwool. With a catalogue of 1900 bales, ours was the largest catalogue to be offered in Sydney this week, totaling 8% of the offering.  We did have a few bigger catalogues in May and June last year, but the quality of the selection not as good as this week. Many buyers commented on the high standard of clips in this sale from Cunnamulla to Yass, and Binnaway to Bourke and most points in between. The catalogue had low VM best top-making fleece types (over 71% under 2%VM) and had a great selection of low VM skirtings, cardings and lambs wool as well as crossbreds. Well done to all growers who offered wool this week on the standard of preparation. Just 2% of the catalogue was passed in with an overall bale average of $1270 - a great result!

Next week has Fremantle back on line to see a national catalogue of 38,000 bales up for grabs in the final sale of the season. If the A$ can stay in the one spot for more than 24 hours we may see a firming market, otherwise there could be a few fence sitters over the next couple of sales.

Ag Concepts Fwd. Price Trades W/E 21 June, 2013

 

Maturity

Low

High

21

18-Sep-13

1140

1140

21

23-Oct-13

1135

1140

21

11-Dec-13

1135

1135

 

1

Techwool

3234

2

Fox & Lillie

2771

3

Modiano (Aust)

2260

4

Australian Merino Exp.

1676

5

Tianyu Wool Pty Ltd

1660

6

Chinatex (Aust)

1439

7

Lempriere (Aust)

1123

8

Michell Australia

1095

9

PJ Morris

571

 

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

1066 cents ê  4 cents compared with 14/06/2013                                  0.9245 ê 0.0217 compared with 14/06/2013

 

Northern Market Indicators (AUD cents/kg clean)

1082 cents ê  4 cents compared with 14/06/2013

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