Weekly Market Reports


22 June 2012

admin Macwool - Friday, June 22, 2012

  WEEKLY MARKET REPORT

Week Ending 22nd June, 2012

 Northern Micron Indices Comparison: Source of information: AWEX

 

AWEX
INDEX

This Week
22/06/12

Last Sale
15/06/12

Change

Last Year
23/06/11

Yearly
Change

17

1422n

1399n

+23

2373n

-951

18

1340

1311

+29

2066n

-726

19

1286

1259

+27

1751

-465

20

1242

1222

+20

1588

-346

21

1233

1228

+5

1522

-289

22

1214n

1212n

+2

1461

-247

23

1184n (M)

1176n (M)

+8

1339 (M)

-155

28

631

624n

+7

706n

-75

30

593

578n

+15

644n

-51

32

495n

485n

+10

590n

-95

MC

601

600

+1

831

-230

OFF THE BOTTOM

As a few key staff sat quietly discussing the markets woes over some beers at the South Dubbo Tavern last Friday night, both mobile phones went off with text messages reporting 20 bales sold on Wooltrade. Could this be the bottom of the market? Is the market on the way back up? We had not made a sale on Wooltrade for weeks and talk of the market being at the bottom was pretty common on the showfloor. Could the A$ climbing above parity stall any rise (at one stage over 102US cents)? Would the better style offering entice buyers to push a little harder? These questions were answered on Wednesday which saw a moderate lift as most indicators posted single digit rises. Thursday saw renewed competition as all microns (bar 21 and 22s) recorded rises of 15 to 30 cents. Even with only a lift of 15 cents in the AWEX EMI to 1069 this sudden change of sentiment was long overdue but very welcome. The extended run of losses that was broken this week came on the back of the smallest offering in 3 years - just 21,500 bales. This week’s rise was the first since early May. The lift in the market saw pass-in rates shrink to just 5% in Sydney and 7% in Melbourne, the smallest in 10 months. Passed in lots from previous weeks did benefit as discounts seemed to be lighter than what was in place recently.

Skirtings followed the fleece room lead as all descriptions bar the heavily infested lots with colour, cott and jowl saw vigorous competition push most types 25 to 40 cents higher with the better style and length lots (finer than 19.5 micron and under 5% VM) attracting most of the buyer attention. The selection has improved over the past month or so, but there is still a portion suffering from the wet weather earlier in the year and still being discounted savagely or almost neglected. The pass in rate for skirtings was double that of the fleece room. Cardings had an up and down sale as a static market on the opening day, except crutching’s in buyers favour, gained momentum on Thursday to lift the MCI by only 1 cent to 601 cents as locks lifted by up to 5 cents  with all other descriptions quoted as fully firm. Crossbreds took a day to get moving as well. After remaining unchanged on Wednesday, buyers ramped up competition on Thursday as 28 micron and broader rose by 10 to 15 cents.

Any time the market rises is a good week but in light of the market’s performance since early May this little lift comes with a sense of relief. To see the market bottom out is good, but as reported in yesterday’s “The Land” the market could still struggle through till Christmas with plenty of movement more-so on the down-side unfortunately as the problems in Europe won’t be fixed overnight. Viterra Wool led the charge this week buying 14%, 3000 bales, followed by Techwool, 9% and Lempriere 8%. What a difference a year makes! 12 months ago the market was at its peak, the EMI at a lofty 1436 cents, this week a massive 367 cents lower at 1069, a 25% fall. A look at 2 years ago sees a 60% lift to this time last year, 899 to 1436 cents so we are somewhere in the middle at the moment. Whispers of a solid market for next week would be another good result.                

                   

Ag Concepts forward price trades W/E June 22

MPG

Maturity

High

Low

21

22-Aug-12

1215

1190 

21

19-Sep-12

1210

1190

21

31-Oct-12

1200

1185

21

28-Nov-12

1200

1200

21

12-Dec-12

1190

1180

21

20-Feb-13

1175

1175

21

20-Mar-13

1180

1180

21

24-Apr-13

1180

1170

21

22-May-13

1150

1150

21

19-Jun-13

1160

1160

               

1

Viterra Wool

3033

2

Techwool Trading

1943

3

Lempriere (Aust)

1724

4

Fox & Lillie

1559

5

Williams Wool

1348

6

Modiano (Aust)

1079

7

Australian Merino Exp

903

8

Queensland Cotton

829

9

Chinatex (Aust)

734

                       

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

                Eastern 1069 cents é 15 cents compared with 15/06/12                      1.0166 é 0.0200 compared with 15/06/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1085 cents é 15 cents compared with 15/06/12

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