Weekly Market Reports


23 September 2011

admin Macwool - Friday, September 23, 2011

WEEKLY MARKET REPORT

Week Ending 23rd September, 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
23/09/11

Last Week
16/09/11

Change

Last Year
23/09/10

Yearly
Change

18

1671

1785

-114

1222

+449

19

1504

1553

-49

1048

+456

20

1353

1385n

-32

906

+447

21

1309

1337n

-28

886

+423

22

1215 (M)

1273 (M)

-58

852

+363

23

1082 (M)

1163 (M)

-81

829

+253

24

1000 (M)

1029 (M)

-29

780

+220

26

865n

-

-

603

+262

28

686

688n

-2

443

+243

30

622n

633n

-11

393

+229

32

586 (M)

587 (M)

-1

354

+232

MC

732n

751

-19

564

+168

EVERYTHING FALLING – OH DEAR!

Another bad week for the wool market as global concerns over the Northern Hemisphere economic downturn send stock markets into meltdown and all and sundry awaiting news of several European countries preparing to default on their $billion loans. Only a bail-out from France and Germany will save the countries in strife with these two economies already stretched to their borrowing limits. Even the currency fall to 97 US cents overnight may not be enough to correct the slide in the wool market. All segments of the processing chain are reporting cautious buying patterns with a lot of traders now adopting a ‘wait and see’ approach. The uncertainty could dampen demand to the point of potentially big falls in the market. As this week’s falls indicate, buyers are in no hurry to book wool up or buy “stock” with most reporting “no direction” as to what to do in regards to buying wool at a certain price level or their ability to on-sell their purchases at profitable margins. As a result the market got progressively cheaper as the week went on with some of the finer indicators in free fall. After the market was flooded with too much of the same type in Newcastle, buyers virtually had no orders for 19 micron and finer. This ridiculous situation of Newcastle holding just three sales between September and November and one in February just to appease some New England wool growers and Brokers has to be looked at. Surely a more even spread of types through more orderly marketing over a few weeks is the way to go, not expect buyers to absorb too much or the 1 type for 1 sale in every 4 weeks! Last time we checked the buyer was still our customer! The finer end of the market (18 and lower) took the biggest hit as falls of 115 to 145 cents were recorded. 18.5 to 19.5 and 23s lost 50 to 75 cents with the remaining fleece indicators averaging 30 cent falls. Discounts for VM, colour and cott grew, with some doubling from two week ago. The EMI, now at 1235 cents has lost 59 cents in the last three sales since its mini-recovery a month ago. We are at the lowest point for eight months.

Skirtings held their levels early in the week only to weaken late in the sale. Initially, fine pieces and bellies lost 10 to 20 cents with the broader types giving up the same amount on Thursday. Lots with heavy cott, colour and jowl were discounted - double the rate of a few weeks ago. Cardings gave up last week’s positive moves as all types fell by 20 to 30 cents, which saw a 19 cent fall in the MCI after last sale’s 20 cent rise. Crossbreds weren’t immune to the sour market as losses of up to 15 cents were recorded.

Well done to the Duncan family from Louth and Steven Carter from Nyngan who were the first clients to deliver wool to the new wool-store. As this report is written the core machine is on its way over there and should be operational by next Thursday. The address of the new wool-store is 2L Richardson Rd, West Dubbo (in behind Metalcorp and Sam’s Hire). A smaller offering of 43,000 bales will probably not be enough to stop the falling trend next week.           

AgRisk FDIC Indicative Quotes 23/09/11

20

21

22

AUCTION

1351.0

1308.5

1228.0

Oct-11

1310

1271

1205

Dec-11

1280

1241

1175

Feb-12

1243

1204

1138

Apr-12

1198

1159

1093

Jun-12

1169

1130

1064

Aug-12

1158

1119

1053

Oct-12

1126

1087

1021

Dec-12

1093

1054

988

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

5182

2

Williams Wool

3924

3

Fox & Lillie

3374

4

Lempriere (Aust)

2890

5

Techwool Trading

2704

6

Sky Wool

2315

7

Kathaytex

2298

8

QLD Cotton

2271

9

Michell Australia

1898

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

                Eastern 1235 cents (ê39) compared with 16/09/11                                1.0015 ê 0.0196 compared with 16/09/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1286 cents (ê39) compared with 16/09/11

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