Weekly Market Reports


28 October 2011

admin Macwool - Friday, October 28, 2011

WEEKLY MARKET REPORT

Week Ending 28th October, 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
28/10/11

Last Week
21/10/11

Change

Last Year
28/10/10

Yearly
Change

18

1597

1495

+102

1383

+214

19

1497

1401

+96

1168

+329

20

1393

1303

+90

989

+404

21

1341

1239

+102

950

+391

22

1220 (M)

1140 (M)

+80

913

+307

23

1098 (M)

1025 (M)

+73

NA

-

26

785n (M)

762 (M)

+23

NA

-

28

657

644n

+13

462

+195

30

613

603n

+10

413

+200

32

584 (M)

581 (M)

+3

NA

-

MC

723

733

+9

613

+110

THE GOOD, THE BAD, AND THE UGLY

We’ll get the bad and the ugly out of the way first. Our apologies go to anyone who was trying to call us this week and got the Telstra message “this number has been disconnected”. In Telstra’s efforts to transfer our main number from the Troy premises across to our new store somehow they disconnected it instead. It took them three days to find the problem and rectify it. Luckily I couldn’t get my hands on the pleasant Filipino who had no idea what was going on and, in the end, even the local Telstra boys were pulling their hair out and genuinely were embarrassed with the whole situation. Telstra haven’t heard the last from me yet.

On to the good news, after six consecutive weeks of losses the market wiped out four of the weeks in one foul swoop rising 57 cents overall. This was the largest weekly rise since February. In US currency the market rose 95 cents as the dollar also rose to be around $1.04 yesterday. The signs were there last Thursday that buyers were starting to look for quantity but we certainly didn’t expect to see several fleece indicators crack 100 cents for the week. Yesterday with only Sydney and Melbourne selling, as Fremantle was a one day sale, the pass-in rate of 5.5% was the lowest in seven months.

Rises were not only centred on merino fleece types as the skirtings also rallied around 60-80 cents which included high VM lots, of which we had plenty. Crossbreds 27 micron and finer rose around 25 cents whilst the broader types were unchanged. Cardings surprised and actually lost ground easing around 10 cents clean.

So why the sudden jump? Well one reason could be that six weeks ago the new season supply figures were showing an increase of around 15% compared to last year. We knew this couldn’t be sustained as last winter was very wet and, in many areas, shearings were running well behind, and the big sell off in WA last spring hadn’t come to the surface. Slowly the figures have been aligning themselves with last year and, as of this week, nationally we’re only up 6% on last year and WA is down a massive 21%.

The only thing to stand between now and a continued recovery is the nervousness about the economic problems in the EU and a slow United States recovery. China reportedly is still low on stocks and still growing. Not surprisingly, the major buyers this week were Chinese agents.

Luke will be back next week from his brief sojourn to the Shaky Isles to continue his weekly commentary.

 

                                                                   Agrisk FDIC Indicative Quotes 28/10/2011

20

21

22

AWEX

1382.0

1337.5

1219.0

Dec-11

1335

1296

1230

Feb-12

1318

1279

1213

Apr-12

1292

1253

1187

Jun-12

1280

1241

1175

Aug-12

1269

1230

1164

Oct-12

1225

1186

1120

Dec-12

1192

1153

1087

Feb-12

1157

1118

1052

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

5434

2

Viterra Wool

3484

3

QLD Cotton

3077

4

Chinatex (Aust)

2923

5

Fox & Lillie

2758

6

Modiano (Aust)

2154

7

Lempriere (Aust)

1934

8

Williams Wool

1709

9

Michell Australia

1428

                       

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

                Eastern 1215 cents (é 57) compared with 21/10/11                                  1.0490 é 0.0301compared with 21/10/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1257 cents (é66) compared with 21/10/11

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