Weekly Market Reports


27 April 2012

admin Macwool - Friday, April 27, 2012

WEEKLY MARKET REPORT

Week Ending 27th April, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
27/04/12

Last Sale
20/04/12

Change

Last Year
28/04/11

Yearly
Change

17

1610n

1606n

+4

No Sales

 

18

1460

1454

+6

 

 

19

1381

1374

+7

 

 

20

1333

1329

+4

 

 

21

1313

1308

+5

 

 

22

1275n

1274n

+1

 

 

23

1237n

1232n

+5

 

 

28

652

648

+4

 

 

30

590

581

+9

 

 

32

519n

513n

+6

 

 

MC

714

733

-19

 

 

                                                                                                                                                                                                                                               

SOLID MARKET – LEST WE FORGET

Very little happened in the wool market this week as sales were conducted over Tuesday and Thursday as the nation paused to remember our diggers on ANZAC Day. The market looked to have bottomed out towards the end of last week and that’s where it stayed. The AWEX EMI was unmoved as a 1 cent rise on Tuesday was negated by a 1 cent drop on Thursday to leave it at 1165 cents. The Sydney market was static with the indicator remaining unchanged over the two selling days. A closer look at the indicators reveals all bar 17.5 (-1 cent) lifting by up to 8 cents. The MCI (cardings) must weigh heavily on the movement of the indicator as it fell 19 cents for the week, thus negating any lift in the indicator. The formula in Melbourne must be the same as in Sydney as their indicator could manage a rise of just 1 cent, after a 3 cent rise was followed by a 2 cent fall. Again a close examination of their individual indicators sees all micron indicators out to 24 rising by up to 9 cents except 19 to 19.5 (losing just 1 cent). Broad merino indicators (25 to 26s) mustn’t play any part in regional indicator movements as these were 25 cents higher in Melbourne but unable to have any bearing on the indicator, whereas a 14 cent fall in their MCI looks to have, like in Sydney, put the brakes on any indicator rise. Buyers chased the better style and FNF types with some up to 10 to 15 cents higher and lots over 2%vm and containing cott and colour off the pace by around 10 cents.

Skirtings had an irregular week as the better style and light VM lots (< 3 % VM) attracted the most competition and finished the sale in sellers’ favour. As has been the pattern for several weeks, lots with heavy colour and cott continue to be almost unwanted as discounts grow and grow. The volume of these types looks to have settled and hopefully can be blended with the lots with little cott or jowl. It is still crucial that the cott and jowl still be removed from the BKN as best you can as price difference can be up to 50%. As reported earlier, cardings fell by an average of 16 cents on the Eastern Seaboard. Locks were the hardest hit, peeling 40 cents off last week’s quotes as stains drifted 10 to 20 cents and crutchings remained unchanged. Crossbreds improved as the week progressed to finish 5 to 10 cents higher.

A week of consolidation would best describe this sale’s outcome. With reduced national quantities over the next 3 weeks (41,500 bale average) and a somewhat keener mood from a few traders we may well have reached the bottom of this price cycle. This week’s 38,000 bale catalogue was the fourth smallest for the season and the smallest by number of lots. Whether the market can sustain a run like this time last year is anyone’s guess - only time will tell. Mac Wool offers 1050 bales last next Thursday and with a few lots sold on Wooltrade, augers well for a solid market next week. 

  

 

MPG

Maturity

High

Low

21

Jul-12

1310

1290

21

Aug-12

1287

1287

21

Sep-12

1285

1280

21

Oct-12

1280

1275

19

Feb-13

1350

1350

21

May-13

1215

1215

21

Aug-13

1140

1110

 

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

                Eastern 1165 cents ê 0 cents compared with 19/04/12                            1.0382 é 0.0024 compared with 19/04/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1194 cents ê 0 cents compared with 19/04/12

 

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