Weekly Market Reports


4 October 2013

admin Macwool - Friday, October 04, 2013

WEEKLY MARKET REPORT

Week Ending 4th October, 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

S14/13

This Week

M14/13

Last Sale

S13/13

Sydney Change

Last Year

Sydney

Sydney Yearly Change

17

1344

1325

1347

-3

1283n

+61

18

1292

1281

1282

+10

1176

+116

19

1258

1255

1260

-2

1110

+148

20

1218

1218

1221

-3

1074

+144

21

1214

1206

1217n

-3

1069

+145

22

1196n

1201

1196n

0

1040

+156

26

798n

784n

826n

-28

809n

-11

28

640

641

647n

-7

567

+73

30

617

611n

612n

+5

537

+80

32

548n

-

549n

-1

478n

+70

MC

815

818n

812

+3

589

+226

FINAL DAY RALLY LEAVES MARKET UNCHANGED

Our “ever reliable” source on which way the wool market might head proved to be spot on this week as the market finished the sale pretty much where it started. A 5 to 10 cent lift in the 17.5 to 18.5 micron range and a solid performance in the skirting sector had the EMI nudge just 2 cents higher to 1099 after Sydney dragged itself 5 cents up and Melbourne remained unchanged.

After a poor start in Melbourne on Tuesday where a mix of local and NZ wool was offered (the Kiwis passed in 47% of their selection, their highest pass-in rate in 2 years) predictions of a better market look all at sea. A steadier market on Wednesday with a late rally in Fremantle gave hope to a recovery on Thursday. As it turned out, we sold first up on Thursday and cleared 100% of our offering on the back of a good recovery.  Apart from the above-mentioned rises, 19 to 23s were virtually unchanged, but super-fines lost ground as 16.5s fell 50 cents to finish just above 1400 cents (this sector still suffering from slow demand and unfortunately, for some time to come over-supply of these types). The weakness of the sub 18.5s is no more evident as just a 101 cent gap is the difference between 17.5 and 22s in Melbourne (1302 to 1201). An 86 cent spread is all that splits 18 and 22 micron in Fremantle, 1253 to 1167!  These numbers are good for medium wool-growers, but a long way short of where 18.5 and finer need to be to sustain a fine-wool enterprise that will keep these growers in the industry.

Skirtings tracked the fleece movements as 17.5 and finer (carrying less than 3% VM) opened 10 to 15 cents lower as all other descriptions remained solid to benefit on the second day with a 20 cent lift for 18 micron and coarser below 5% VM. Crossbreds continue to struggle under a typical spring scenario - quantity increasing and currency too high. The finer types lost more ground, 25s and 26s falling 15 to 30 cents while 28 to 32 micron moved 5 cents either way of last sale’s quotes. Cardings halted their run of falls as all 3 centres added 5 to 15 cents to their regional MCIs.

One problem that the Chinese continued to raise was the increasing prevalence of contamination they are finding. It seems more and more is ending up in bales and detection of small foreign matter is hard to find and can ruin a top or costs increase in extra labour to detect contaminants before it’s too late. It is critical that all contamination is kept out of bales, including skin pieces. Another thing that amused us was their questions about the “colour” of the wool. Not unscourable colour, but the colour of the dust! They can’t understand that there are so many different types of soil in Australia from black to red to grey in the East to the sand and grit that WA wools carry.

As most would know, we are in the middle of the ram selling season. From media reports it looks like top prices, clearance rates and averages are on par or a touch higher than last year with a few studs averaging over $2000/ram. A great achievement given the amount of time and effort that goes into getting them to the sale ring. National volumes continue to shrink, just 40,000 on offer next week with a small rise in the market the best guess. Go MANLY!!!

 

Fwd. Price Trades W/E 4 October, 2013

Maturity

Low

High

Maturity

Low

High

21

06-Nov-13

1200

1210

21

19-Mar-14

1200

1200

19

11-Dec-13

1310

1310

21

30-Apr-14

1185

1200

19

19-Feb-14

1300

1300

21

15-Oct-14

1200

1210

 

 

 

1

Techwool

4007

2

Lempriere (Aust)

3604

3

Chinatex (Aust)

3564

4

Aust. Merino Exp.

2714

5

Tianyu Wool

2625

6

Fox & LIllie

2402

7

Modiano (Aust)

2173

8

Michell Wool

1708

9

PJ Morris

1506

 

 

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

1099 cents é  2 cents compared with 27/09/2013                                  0.9389 é 0.0023 compared with 27/09/2013

 

Northern Market Indicators (AUD cents/kg clean)

1120 cents é  5 cents compared with 27/09/2013

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