WEEKLY MARKET REPORT

Week Ending 29^th November, 2013

AWEX Northern Micron Indices Comparison

MOMENTUM IS BUILDING

The fifth consecutive week of gains has all three regional indicators above 1100 cents with the EMI AT 1127. This is the longest winning streak in five months. We were fortunate enough to sell yesterday to catch the peak of this sale following on from last sale when we sold early in the week (before a dip in prices last Thursday). An 11 cent rise next week will see the EMI at an 18 month high. Fremantle performed the best as their indicators rose 25 to 50 cents.

Momentum built as the sale progressed, with the final Super-fine designated for the year seeing keener competition pushing 19s and finer 20 to 40 cents higher, and up to 50 cents better in Melbourne. After an opening day slide of up to 15 cents, medium types recovered to post 5 to 15 cent gains. Helping the market was a weaker A$ falling to under 91 cents on Wednesday night making the market in US terms actually 4 cents cheaper - now at 1030. The impending three week Christmas recess would also be playing on exporters’ minds.

Skirtings were more subdued than the fleece room but still prices rose 20 to 25 cents on the back of a typical super-fine selection of superior types - low VM ( <5%) and finer microns. The second largest Crossbred catalogue of the season (7100 bales) saw little change as 28 to 30 microns gained up to 5 cents. The carding catalogue was in fact the biggest to date this season, also 7000 bales. Adelaide based Michell P/L dominated this sector, buying 25% of the offering. Despite this dominance, cardings were only in sellers’ favour on the Eastern Seaboard, but in Fremantle all sectors added to last sale’s values, pushing their MCI up by 20 cents.

Away from the wool market, plenty of news courtesy of “The Land”. Elders again made headlines for the second week running as their managing director, Malcolm Jackman, has bought forward his retirement and finished on Wednesday. His retirement coincides with the announcement of a $500 million loss for 2012/13. It looks like iconic jean maker, Levi Strauss, is winding back the clock as it released its wool-blend “Levi 501” jeans at the AWI AGM last Friday. This project, 8 years in the making, will see every pair with 12% wool, the key is in the blending process with the cotton and wool done in the warp and weft as opposed to the cost prohibited “inter-locking” process. Plans are well afoot to increase this % to 30%, targeting the northern hemisphere. Also revealed was Nike’s new “Dri-FIT” sports wear, containing 65% Lambs wool. Still on AWI, 2 new directors were elected last week, Paul Cocking from Riverina Wool Testers and South Australian woolgrower, James Morgan. The opening of Macdonald Rural CRT was a huge success last Friday with over 250 people through the shop - locals welcoming a new business to town. Next week will see the penultimate sale of the year with 47,000 bales on offer in the 3 centres with our reliable source predicting solid to sellers’ favour. Let’s hope it rains till the middle of next week!!

Ag Concepts Fwd Prices at 22 November

Main Buyers (This Week)

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

1127 cents é 17 cents compared with 22/11/2013             0.9135 ê 0.0174 compared with 22/11/2013                        

Northern Market Indicators (AUD cents/kg clean)

1152 cents é 15 cents compared with 22/11/2013