WEEKLY MARKET REPORT
Week Ending 3rd February, 2012
Northern Micron Indices Comparison: Source of information: AWEX
AWEX |
This Week |
Last Week |
Change |
Last Year |
Yearly |
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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