WEEKLY MARKET REPORT

Week Ending 23^rd November, 2012

Northern Micron Indices Comparison: Source of information: AWEX

MARKET SETTLES – NOW FOR THE RUN HOME!

The market did what we predicted, finishing the week in positive territory. A good opening day was followed by two days of the market barely maintained, but the first day’s increases were enough to push both the EMI and the NMI 6 cents higher to 1019 and 1043 respectively. Newcastle played host to its final sale of the year - their largest since September last year (14,000 bales). All indicators from 19.5 and finer rose 10 to 15 cents (bar 17 and 19s), these ending the sale just in sellers’ favour. The limited selection of medium and broader types was mixed as 20 to 21 microns faded up to 8 cents cheaper with 22 and 23s up to 5 cents dearer. The stylish offering of spinners and choice style wools from the New England sold to increased competition with two lots topping the market at 4,250 cents (both lots under 14 micron). Specialist super-fine buyer, New England Wool, bought 2000 bales to be second behind Qld Cotton.

The excellent catalogue of skirtings had buyers keen to secure the finer (<18 micron) low VM lots on offer through to the final day as most types added 20 to 35 cents and more for lots under 3% VM. Cardings had a solid week as all types finished the sale fully firm to sellers’ favour to leave the MCI unchanged at 628 cents. Just over 5% (800 bales) of the selection were crossbreds which were nearly unquotable but, for the record, remained unchanged.

Away from wool sales plenty has been happening in the wool and sheep game with the OJD re-zoning debate and results from Woolpoll 2012 released. The grower information meetings that AWI held around the bush in the lead up to voting looks to have paid off as this year’s voter participation was the highest since growers were given the option to vote on the level of tax. The vote in favour of retention of 2% tax came from 61% of the 42% of valid voting papers returned. The full breakup of voting for zero or 1% was not known, but would be released at today’s AWI AGM. The split of funding is to change from 50/50 to 60% allocated to marketing with 40% for research and development. It will also draw down on its reserves to the tune of $42m over the next two years for increased spending on marketing and on-farm R and D. The bun fight over the re-zoning of OJD boundaries has hit fever pitch after the forum in Sydney last week. As the front page of “The Land” reports, pending legal action against Sheepmeat Council of Australia and Woolproducers Australia, who are pushing for the new national management strategy, is a definite possibility lead by prominent Yass woolgrower Stan Waldren with overwhelming grower support. The proposed changes would limit growers ability to move and sell stock not only in NSW but interstate as well with  massive implications for Narromine to function as effectively as it has done in the past where sheep have been traded from QLD to VIC. If more clarification is needed, your stock agent may be able to provide you with the latest on the proposed new boundaries. Next week will see the largest catalogue since April, 55,000 bales, on offer with a solid market predicted. We’ll sell on Thursday.                               

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

                Eastern 1019 cents é 6 cents compared with 15/11/12                                  1.0390 é 0.0006 compared with 15/11/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1043 cents é 6 cents compared with 15/11/12