Weekly Market Reports


3 February 2012

admin Macwool - Friday, February 03, 2012

WEEKLY MARKET REPORT

Week Ending 3rd February, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
03/02/12

Last Week
27/01/12

Change

Last Year
27/01/11

Yearly
Change

18

1499

1513

-14

2077

-578

19

1418

1431

-13

1638

-220

20

1346

1352

-6

1203

+143

21

1302

1308

-6

1162

+140

22

1290n

1288n

+2

1110

+180

23

1277 (M)

1271 (M)

+6

NA

-

24

1117 (M)

1135 (M)

-18

NA

-

28

596n

596

0

567

+29

30

524n

528

-4

503

+21

32

482n

481n

+1

448

+34

MC

697

697

0

700

-3

                                                                                                                                                                                                                                               

DOLLAR SINKS THE SURGE

It was another reasonable week at wool sales despite the strong surge from the dollar reaching a five month high of US1.07 yesterday. For the second week in a row the superfine types met with strong demand with the 16.5 micron indicator rising just on 100 cents for the fortnight.

All other categories either “treaded water” (pardon the pun) or slipped slightly against the weight of the appreciating currency. The EMI in US currency is nearly 100 cents higher at 1281 which was up 25 cents for the week. As China is purchasing 70% of our wool and their currency is hinged to the US dollar it has a significant impact on buying power. The whole issue of China pegging the Yuan to the US dollar is an issue of consternation to most western economies who feel China is unfairly piggy backing on the weak US currency to keep their imports cheap. All industrialised countries are struggling to compete with cheap imports from China and many argue that, if floated, it would appreciate by up to 40%.

So this week saw a small offering of just over 37,000 bales with, apart from superfine types, most merino types were solid on the first day and drifted up to 10 cents clean yesterday. Merino skirtings ended the week unchanged as did crossbred types and cardings. Our sources expect Chinese activity to keep the market at somewhere around these levels as offerings for the next month are expected to be around 45,000 a week. Brokers in NSW and Qld will be well down after next week as the prolonged wet spell has stalled shearing and wool deliveries into store in many areas.

Supply will continue to be the main factor keeping the market at these levels as wool production figures for year to date to end of January show wool volume by weight 1.1% lower than last year. Actual volumes of clean fleece weight could be slightly higher as many clips we see are yielding higher than last year by a couple of percent, easing growers concerns over fleece weights being down.

Whilst the fine wool indicators are below last year’s levels the end result over the total offering is still very healthy.

The average for all fleece wool sold in Sydney this week was 983 cents greasy (19.2u ave), whilst crossbred fleece averaged 388 cents a kilo at 27.4u average.

Next week Don Macdonald & Co will offer over 1300 bales first up on Thursday with expectations being similar to this week’s market or maybe a touch lower depending on the dollar. A national offering of 44,980 bales in expected in three centres.

 

Agrisk FDIC Indicative Quotes 03/02/2012

20

21

22

AWEX

1334.0

1296.0

1284.5

Feb-12

1273

1236

1210

Apr-12

1266

1229

1203

Jun-12

1242

1205

1179

Aug-12

1210

1173

1147

Oct-12

1157

1120

1079

Dec-12

1137

1100

1059

Feb-13

1102

1065

1024

Apr-13

1081

1044

1003

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

4722

2

Fox & Lillie

3047

3

Techwool Trading

2713

4

Dalgety Wool Exp.

1875

5

QLD Cotton

1764

6

Modiano (Aust)

1592

7

Williams Wool

1569

8

G Schneider (Aust)

1474

9

Lempriere Aust.

1290

                       

 

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

                Eastern 1193 cents ê 4cents compared with 27/01/12                                1.0736 é 0.0216 compared with 27/01/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1220 cents ê 3 cents compared with 27/01/12

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