Weekly Market Reports


30 September 2011

admin Macwool - Friday, September 30, 2011
 

 

WEEKLY MARKET REPORT

Week Ending 30th September, 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
30/09/11

Last Week
23/09/11

Change

Last Year
30/09/10

Yearly
Change

18

1566

1671

-105

1237

+329

19

1437

1504

-67

1051

+386

20

1320

1353

-33

910

+410

21

1281

1309

-28

887

+394

22

1209

1241

-32

861

+348

23

1060n

1108

-48

-

-

24

996n (M)

1000 (M)

-4

-

-

28

676

686

-10

444

+232

30

623

622n

+1

389

+234

32

585n

584

+1

354

+231

MC

735

732n

+3

571

+164

STOCK MARKETS RECOVER – WOOL MARKET KEEPS FALLING

The wool market lurches from bad to worse as the EMI slips under 1200 cents for the first time since January of this year. A 42 cent fall now has the EMI on 1193 cents. All three centres recorded double digit falls on both selling days. Any sentiment of positive note has all but gone from the market as buyers struggle to sell any quantity of any type, especially in the fine sector.  Only the Crossbreds and Cardings escaped with prices in tact this week. Heavy uncertainty over Europe’s ability to ride out the current financial crises and avoid an almost certain slip back into recession is weighing heavily on confidence and direction of stock markets as the yoyo effect is a daily ritual with any sort of good or bad news driving the markets up or down. No sector of the fleece market escaped the negative tone as 18 and finer fell 105 to 140 cents - this despite a mini recovery on Thursday of 17 and finer. This recovery was partly a result of a clip of ours under 18 microns all selling above their indicator level. New England Wool bought all but 3 bales of fleece (32 bales) ranging in price from 1230 to 1520 cents and also secured the BKN, all for processing in Biella, Italy. Well done to this grower on a clip equal to anything to come out of a super-fine area. All other indicators fell from 30 to 50 cents for 19.5 to 23s and 65 to 80 cents for 18.5 to 19, again discounts for heavy colour and cott were the order of the day with some lots attracting ‘NO BID”.

Once again, skirtings were hit hard with most types feeling the effects of buyer neglect. Fine lots lost 70 to 80 cents, while 20 micron and broader fell by 40 cents, with the burrier end of the types (8 VM +) least affected. Cardings, as mentioned, remained fairly static with fine locks 20 down on the first day and stains 10 dearer on the final day with some burry bellies and carbonising pieces looking cheaper. Crossbreds moved very little as 28s lost 10 cents with all other types remaining unchanged from the previous week under a smaller offering than the past four weeks.

A tough few weeks for the market as mills and traders are not likely to commit themselves to buying wool unless they have solid commitments at the other end. Most business has ground to a halt with little prospect of orders being booked up over the next few weeks. Medium wools might be close to the bottom, but unfortunately fine types may suffer more losses as one buyer said they “cannot sell a kilo” of 18 or finer into China with only the better style clips, as was the case this week, being sought after by Italy. A quick look at the table above does tell us the market is in far better shape than 12 months ago but, going forward, the light at the end of the tunnel is small but hopeful of a turn-around in the markets fortunes sooner rather than later. Next week sees a national catalogue of 48,000 bales with little hope of a dearer market, but at least it’s rained across a wide area! And – dare we say it – Go Manly and Geelong! in this weekend’s Grand Finals (the opinion of the author of this report do not necessarily reflect those of his colleagues!)

Agrisk FDIC Indicative Quotes 30/09/2011

20

21

22

AUCTION

1316.5

1279.0

1195.0

Oct-11

1299

1260

1194

Dec-11

1278

1239

1173

Feb-12

1241

1202

1136

Apr-12

1196

1157

1091

Jun-12

1167

1128

1062

Aug-12

1156

1117

1051

Oct-12

1124

1085

1019

Dec-12

1091

1052

986

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

4885

2

QLD Cotton

4369

3

Fox & Lillie

3757

4

Techwool Trading

2888

5

Williams Wool

2343

6

Lempriere (Aust)

1931

7

Kathaytex

1440

8

G Schneider (Aust)

1408

9

Michell Australia

1322

                       

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

                Eastern 1193 cents (ê42) compared with 23/09/11                                0.9795 ê 0.0220 compared with 23/09/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1238 cents (ê48) compared with 23/09/11

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