Weekly Market Reports


24 May 2013

admin Macwool - Friday, May 24, 2013

WEEKLY MARKET REPORT

Week Ending 24th May, 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

24/05/2013

Last Week

17/05/2013

Change

Last Year

25/05/2012

Yearly Change

17

1315n

1307

+8

1513n

-198

18

1237

1230

+7

1364

-127

19

1206

1197

+9

1304

-98

20

1162

1143

+19

1284

-122

21

1147

1132

+15

1276

-129

22

1146n

1128n

+18

1257

-111

23

1133n (M)

1117n (M)

+16

1236 (M)

-103

28

615

585

+30

628

-13

30

566

546

+20

566

0

32

480n (M)

462n (M)

+18

480n

0

MC

758

743

+15

634

+124

THREE WEEKS IN A ROW….BUT

Yes the week started like there was no tomorrow with fleece indicators coarser than 19.5 jumping another 20-30 cents and the finer types still inching dearer. It was surprising to open yesterday’s market report and find fleece categories again coarser than 19.5 all cheaper by 10-15 cents. The reason I say surprising is that we sold early in the day yesterday and whilst we could see it was no dearer, it certainly wasn’t that much cheaper. So, it was late in the day that the market peeled back and interestingly in Melbourne 22 microns closed six cents dearer than 21 micron whilst in Sydney they were almost par. To confirm this toady we costed some of the straight types in our catalogue and many were above yesterday’s indicator close - some by 15 cents.

The rest of the market was unaffected as skirting and cardings held their gains whilst crossbreds did likewise. Our catalogue of around 850 bales saw a total clearance across all types from a top price of 994 cents for 17.8 micron wool from Uralla in the New England to 80 cents for dags from Cooma! The best feature of this market is that nearly all types are getting good competition and value. The only sector which isn’t getting value is the fine wool sector and, sadly, this is not going to change in a hurry.

A quick glance at the crossbred section of the catalogue has prices for fleece and lambswool making anywhere from 400 cents to high 500s, and oddments from mid 200s to 400 cents.

The question is “why did the market retreat late yesterday?” Well the dollar has a bit to do with it and I can hear you saying, “but it has fallen”. Whilst it has fallen considerably over the last few weeks, it hasn’t stabilised and Chinese traders who are hearing from Chinese economists that the A$ could fall to 90cents US are being cautious. During the week the A$ went from 96.5 cents to 98 cents and back to 96 cents which caused this hesitation and Australian traders saw inquiry and orders dwindle Wednesday night and Thursday.

The reason for the continued strength in 22 microns was not China but indent orders for Japan and India where those types have to be delivered exactly to specification, whereas the stock standard 19.5 and 21 micron orders which are typical for China can be delivered finer if there is no price differential. So with such limited supply for 22 and coarser these lines are pushed, in some cases, higher than a full micron or even two finer which we saw yesterday. One 22.1 micron line in our catalogue yesterday from Nyngan made 1263 clean which was one cent higher than where the 20 micron indicator closed! The message here for woolclassers is to make a broad line to get a premium!

Our mail is that things might settle around this level, and hopefully the dollar does likewise. Supply will still be short for the next three weeks with offerings of 34,735 next week and 27,150 the week after.  We have almost regained what was lost in those first few weeks after Easter. Since the 2nd May 19 micron has risen 98 cents; 20 micron up 95 cents; and 21 microns up 87 cents. So cautiously, we look forward to an unchanged market when we sell next Wednesday with 1140 bales.

 

Ag Concepts Fwd Price Trades W/E 24 May, 2013

MPG

Maturity

Low

High

21

10-Jul-13

1160

1160

21

21-Aug-13

1130

1130

21

23-Oct-13

1100

1125

21

11-Dec-13

1120

1120

 

1

Techwool

4247

2

Lempriere (Aust)

3409

3

Fox & Lillie

2850

4

PJ Morris

2618

5

Tianyu Wool Pty Ltd

2331

6

Australian Merino Exp.

1897

7

Modiano (Aust)

1673

8

Kathaytex

1355

9

Queensland Cotton

854

 

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

1038 cents é 16 cents compared with 17/05/2013                                 0.9648 ê 0.0233 compared with 17/05/2013

 

Northern Market Indicators (AUD cents/kg clean)

1054 cents é 17 cents compared with 17/05/2013

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