WEEKLY MARKET REPORT

Week Ending 30^th March, 2012

Northern Micron Indices Comparison: Source of information: AWEX

OH WHAT A NIGHT!

The official opening of the wool store attended by 430 growers was a night to remember. The crowd was entertained with a full evening from bag-pipes by John Johnston from Bugaldie to the fashion parade, some speeches and the charity auction. Everyone had a great night and caught up with old friends and some even had time for a dance!

The one comment that all had to say was how big the shed is, even the AWI agents from all parts of the globe were astounded at the size of the shed which was skyped to us on the big screen thanks to modern day technology! For many the highlight was the fashion parade with three professional models and nine local girls (many from St. Johns College) doing a great job of modeling the latest fashion from evening to sports wear. John Elliott, prominent woolgrower from Wilcannia and long term client, spoke on behalf of clients and recited a poem which drew roars of laughter. Wal Merriman officially opened the wool store and to cap a great night off, the charity auction raised over $4600 for RFDS and Redkite.

A lot of time and effort went into holding a night like this and many heart-felt thanks go to the following: AWI CEO Stuart McCullough, Chairman Wal Merriman and the staff of AWI who did so much with the fashion parade. Brigid MacLaughlin for her designs and professional input, Adors Hire, and Chris and Jeanagh Condon from the South Dubbo Tavern for supplying the drinks and donating two  items for the auction ( Harley Davidson leather jacket and a bottle of Penfolds Grange Hermitage)

For those wishing to see photos of the evening go to www.gplus.to/macwool. These shots can be downloaded free of charge if you see one you would like for a keepsake.  

The hopes of a good market after the solid Fremantle sale last Thursday didn’t quite pan out as we had liked. Falls over the two selling days saw the EMI shed 12 cents to sit at 1212c/kg. The finer sector of the indicators suffered the biggest losses as 19 down to 17.5 micron gave up 25 to 45 cents for the week. 17 and 19.5 averaged a fall of 15 cents while the middle micron ranges of 20 and 21 moved the odd cent each way. Broader wools in the 22 and 23 micron lost 10 cents. For the third week running national volumes were in the low 40,000s and the exchange rate happy to settle under 1.05 US cents, in fact dropping to under 1.04. Unfortunately, these factors have not helped the market as falls of 27 cents (2.2%) over the past two weeks have left most people wondering just when the next “bounce” will occur. Reports from China say the “pipe-line” has no wool in it and most mills are running hand–to-mouth, buying just enough to keep machinery running with no thought of buying stock. These three factors should lead to buyers looking to secure volume, but as yet they haven’t pushed the button. When they do is anyone’s guess.

The Room 2 wools seemed to fare much better as an initial drop of 10 to 20 cents for 19 and coarser with 5 to 8%VM was reversed with 18.5 and finer with similar VM finishing the sale 20 cents higher after a solid opening. Cardings gave up some of last week’s good gains as the opening day’s solid market waivered on the final day as locks and stains fell 20 to 25 cents, whilst crutchings finished the sale fully firm. Crossbreds had a solid, if not spectacular, sale as most types and descriptions were tending sellers’ favour. Hopefully Fremantle’s 3 cent rise yesterday will keep going next week.

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

                Eastern 1212 cents ê 12cents compared with 22/03/12                       1.0362 ê 0.0032 compared with 22/03/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1246 cents ê 12cents compared with 22/03/12