Weekly Market Reports


28 March 2013

admin Macwool - Thursday, March 28, 2013

WEEKLY MARKET REPORT

Week Ending 28th March 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

28/03/2013

Last Week

22/03/2013

Change

Last Year

30/03/2012

Yearly Change

17

1356n

1378n

-22

1710

-354

18

1263

1293

-30

1526

-263

19

1233

1259

-26

1437

-204

20

1192

1206

-14

1381

-189

21

1180

1197

-17

1356

-176

22

1169n

1181

-12

1325n

-156

26

823n

819n

+4

834n

-11

28

621

629

-8

647

-26

30

576

583

-7

592n

-16

32

474n (M)

490n (M)

-16

521 (M)

-47

MC

750

752

-2

740

+10

STILL LOOKING FOR THE BOTTOM

The disappointing run of the past 6 to 8 weeks continued unabated as the market lost ground across all sectors in the final sale of this series as all participants take a breather next week for the Easter recess. After last Thursday’s firm market we thought the bottom may have finally been reached. Sadly, this was not the case as the falling market gained momentum as the sale progressed to have all fleece indicators falling 10 to 35 cents with most of the damage on the final day. Medium types from 20 to 24 micron and 17.5 and 18.5s suffered the least, giving up 10 to 20 cents whereas the finer indicators, as has been the case in previous sales, took the brunt of the falls losing 20 to 35 cents. This week’s sale has been a mirror image of the past month or so as the finer indicators have been losing more ground than the medium types. Emphasis again was on the high mid-break lots with very little or no discount on the lots with a low mid-break. In fact we found a few of our lots made more than the indicators. The peak of the market since Christmas was at the end of January when the EMI was 1138 against today’s level of 1059, a 79 cent fall. Fine indicators out to 18.5 have fallen an average of 154 cents in that time, whereas 19 and 19.5s lost 104 cents with the medium to broader indicators (20 to 23) having given up about 62 cents. Melbourne again had the bulk of the national offering (52%) with Wednesday its 5th largest selling day for the season (13,600 bales). Conversely, in Sydney, only 11,000 bales were on offer for the entire week, its 5th smallest sale for the season thus far. This sale saw the run of falls stretch to seven consecutive selling days in a row - the longest losing streak since October. The average weekly offering since Christmas has been 49,000 bales, the largest since the corresponding period in 2008 when this figure was 53,000.  

Skirtings suffered the biggest falls on the opening day as types with up to 5% VM were quoted 20 cents lower and burrier lots 30 cents off the last sales quotes. The rot did stop on the final day as all descriptions were fully firm. As we have said in past reports this sector of the market is still in good shape when compared to fleece prices. BKN’s from areas like Gular and Tooraweenah are still making over 600 cents! Cardings finished the sale just off the pace as LKS were in buyers’ favour with CRS and STNs 5 to 10 cents cheaper, although LMS looked to have made a recovery from last week’s hiccup. This part of the market is also in a good state as LKS and CRS are making 400+ cents  with one lot of CRS from Tilpa making over 600 cents, although knowing the buyer and the grower very well,  we feel this was a set-up!  Crossbreds had a mixed sale with finer types in the 25 to 27 micron range up to 5 cents better, while 28 to 32 microns looked 5 to 10 cents off.

As was reported last week the release of wool from bonded stores or traders in China will filter through the market and, with shearings ahead of schedule and wool cuts back due to the dry Spring/Summer period, the smaller quantities post Easter should help the market. We are rostered to sell on Thursday, 11th April with a catalogue of 1100 bales. For all you clients that are computer literate, we are now connected to Facebook and Twitter. So, if you have a profile in either or both, befriend us on Facebook, or follow us on Twitter. Also we are in the process of updating our website so soon you will be able to view your local weather and also stream live radio from 2WEB. Have a safe and happy Easter. Hope the Easter Bunny and rain find you!

Ag Concepts Fwd Price Trades W/E 22 March, 2013

MPG

Maturity

Low

High

21

10-Apr-13

1195

1200

21

08-May-13

1200

1200

21

10-Jul-13

1200

1200

21

18-Sep-13

1175

1190

21

23-Oct-13

1190

1190

 

1

Viterra

7717

2

Lempriere (Aust)

4390

3

Fox & Lillie

3076

4

Techwool

2383

5

Modiano (Aust)

2116

6

Tianyu Wool Pty Ltd

1764

7

Australian Merino Exp.

1590

8

Queensland Cotton

1023

9

PJ Morris

886

 

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

1059 cents ê 22 cents compared with 21/03/2013                             1.0466 é 0.0087 compared with 21/03/2013

 

Northern Market Indicators (AUD cents/kg clean)

1082 cents ê 20 cents compared with 21/03/2013

 

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