Weekly Market Reports


23 March 2012

admin Macwool - Friday, March 23, 2012

WEEKLY MARKET REPORT

Week Ending 23rd March, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
23/03/12

Last Week
16/03/12

Change

Last Year
24/03/11

Yearly
Change

17

1728n

1734n

-6

2504

-776

18

1570

1580

-10

2163

-593

19

1464

1492

-28

1705

-241

20

1380

1423

-43

1393

-13

21

1358

1400

-42

1321

+37

22

1335

1349n

-14

1312

+23

23

1257 (M)

1280 (M)

-23

1291

-34

28

650

645

+5

734

-84

30

590

580

+10

669

-79

32

513n

508n

+5

629

-116

MC

756

722

+34

814

-58

                                                                                                                                                                                                                                               

IT’S PARTY TIME!!

Our hopes of the market’s upward trend of the past three weeks continuing ended this week as the sale progressively got worse as the week wore on. The bubble seems to have burst somewhat for the middle microns as 21s got to 1400 cents last week and that price barely lasted a day. The wobbles that Fremantle had late on Thursday certainly proved spot on as to how the market would perform this week. The opening day’s National Wool Market Report shows the market getting weaker as the three centres sold. Sydney, in fact, fared the best as most indicators recorded only single figure falls with 20 and 21 microns losing 10 to 20 cents. Most of the falls in Melbourne were between 10 and 25 cents. The bad news spread quickly across the Nullabor as the losses in Fremantle were in the order of 15 to 40 cents resulting in a national pass-in rate of 14%. Thursday wasn’t shaping up any better as attempts to negotiate on our few passed in lots (7) were unsuccessful on some as a reduction in buyers’ limits was all the talk. The Sydney market took the brunt of the falls as 18.5 and coarser gave up 15 to 30 cents with 18 and finer 5 to 15 cents down with some of the “funny” finer lots up to 100 cents cheaper. Melbourne’s losses were in the order of 10 to 25 cents. By the time Fremantle opened sentiment had changed slightly with some indicators actually in sellers’ favour, enough to lift their WMI by 1 cent. The only indicator to fall was 22s, losing 14 cents. Hopefully this is a good lead into next week.

The often resilient skirtings did just that and all but defied the heavy losses in the fleece room. After all descriptions started on a solid footing, 19 to 20 micron B and C fault (3 to 6%) skirtings ended the day 10 to 15 cents better. Thursday’s very small offering held its ground, but buyers are still wary of lots containing heavy cott and jowl. These continue to attract big discounts and should be kept in a separate line as prices for pieces and bellies can nearly be halved if found in these lots. Cardings looked to be the stand-out performer for the week as the MCI added 34 cents to sit at 756 cents. The breakup saw locks surge 40 cents, stains added 30 cents while crutchings were 20 cents up. In what capped off a good week for room 2 wools, crossbreds of all types and descriptions gained 5 to 15 cents across the board.

The roller-coaster ride that the wool market has been on since Christmas continued on its merry way this week. The three rises have been quickly followed by three falls, but the corrections have been less than the rises on each occasion. The market has moved in a 60 cent range between 1190 and 1250 over the last 10 weeks and sits at 1224 today. National volumes of low 40,000s and an exchange rate that fell to under 104 US cents didn’t help the market this week but, as we have said previously, what happens in Fremantle on Thursday can dictate the next week’s price direction. Let’s hope it does! We open proceedings first up next Wednesday with 700 bales on offer. Plans are well in hand for our official opening tomorrow night, commencing at 7.00pm sharp. The cat-walk is in place and the cool-room is switched on! A crowd of 440 should be in for a great night with a few surprises in store for one and all. A correction to last weeks report - this is the biggest gathering of wool growers not just in Dubbo but Australia since the board of AWRAP was infamously sacked in Goulburn in 1998 for mismanaging the disposal of the stock-pile. See you tomorrow night and don’t forget your dancing shoes!         

                               

1

Viterra Wool

5085

2

Techwool Trading

3909

3

Modiano (Aust)

2981

4

Chinatex (Aust.)

2871

5

Fox & Lillie

2171

6

QLD Cotton

2069

7

Lempriere (Aust)

1964

8

Williams Wool

1668

9

AS Gedge (Aust)

1566

                       

 

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

                Eastern 1224 cents ê 15cents compared with 15/03/12                       1.0394 ê 0.0071 compared with 15/03/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1258 cents ê 12cents compared with 15/03/12

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