Weekly Market Reports


24 February 2012

admin Macwool - Friday, February 24, 2012

WEEKLY MARKET REPORT

Week Ending 24th February, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
24/02/12

Last Week
17/02/12

Change

Last Year
17/02/11

Yearly
Change

17

1703n

1780

-77

2417

-714

18

1555

1603

-48

2098

-543

19

1444

1490

-46

1628

-184

20

1368

1398

-30

1247

+121

21

1332

1379

-47

1188

+144

22

1306

1351

-45

1134

+172

23

1286n

1341n

-55

1081

+205

28

640

637

+3

617

+23

30

581

583

-2

543

+38

32

508n

516n

-8

479

+29

MC

726

714

+12

750

+24

                                                                                                                                                                               

FINE WOOL UNDER PRESSURE – LOOK OUT NEWCASTLE!

The shaky end to last week’s sale was just a precursor to this sale as prices tumbled at a rapid rate from ‘go to whoa’. It was a case of dèja vu when compared to the opening two weeks of the year, when a good opening sale was followed by losses of equal amounts. This time, after a good rise two weeks ago, buyers were uncertain as to where to send the market last week.  No such uncertainty this week as the negative tone was loud and clear from the opening bell. Heavy falls early in the week steadied as the sale progressed with the EMI halving its losses as the week unfolded. The EMI gave up 37 cents to sit at 1222. In US c/kg the fall equated to a 44 cent reduction to 1284 cents. This week’s fall was the largest in five months and the national pass in rate of 22% was the biggest in nearly two years. Even New Zealand Merino passed in more than Fremantle, 41% compared to 30%!  Losses were across the board in the fleece sector as finer microns (16.5) dropped almost 100 cents with 17 and 17.5 back 60 to 75 cents. All other indicators lost 45 to 55 cents bar 20s which slipped 30 cents. As is the case when a fall occurs, discounts were back in vogue for tender, colour and cotty lots. The table above illustrates the good position of medium wool and the big fall in fine wool prices compared to last year.

Skirtings fared far better than their fleece counter-parts. On the whole, prices remained steady with buyers picking the eyes out of lots with colour and cott with some being discounted and others making well above estimation. Cardings also defied the negative tone of Room 1 as the MCI moved ahead by 12 cents to 726 cents. All types and descriptions advanced by 10 to 30 cents.  Even with cardings gaining ground buyers are reluctant to purchase any lots with Noogoora Burr. Unlike Bathurst Burr, Noogs do not break up in the scouring process and discounting is heavy when compared to similar types without Noogs. Most of these lots, regardless of micron or VM, range in price from 100 to 200 cents, a reduction of 100 to 200 cents to other lots. It is important to try to keep Noogoora infestation separate from other VM types if possible, especially in fleece lots, separation in skirtings and, of course, cardings is more difficult, but with such large discounts the effort to segregate Noogs could be well worth it. Crossbreds took a breather from their bullish run of the last fortnight. Fine lots, from 28 to 30 micron, moved just a few cents either way with 32 microns 8 cents easier.

Next week’s focus shifts to Newcastle as they host their final sale of the season with 12,500 bales on offer. Up until this week the prospect of reasonable prices looked good as increases in the fine and super-fine sector had been building over the past few sales. New England wool growers will certainly be nervous about the prospect of a good outcome next week. The selection is best top-makers and better predominately finer than 18.5 micron but, as one buyer reported, “business is dead”. Let’s hope business comes to “life” next week, otherwise pass-in rates could rival this week’s heights.

 

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

5507

2

Williams Wool

3798

3

Fox & Lillie

2496

4

Techwool Trading

2457

5

Modiano (Aust)

2148

6

QLD Cotton

1754

7

Kathaytex

1650

8

Chinatex (Aust.)

1404

9

PJ Morris

1283

                       

 

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

                Eastern 1207 cents ê 37cents compared with 16/02/12                       1.0642 ê 0.0033 compared with 16/02/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1247 cents ê 33cents compared with16/02/12

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