Weekly Market Reports


5 April 2012

admin Macwool - Thursday, April 05, 2012

WEEKLY MARKET REPORT

Week Ending 6th April, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
06/04/12

Last Week
30/03/12

Change

Last Year
07/04/11

Yearly
Change

17

1676

1710

-34

2477

-801

18

1495

1526

-31

2092

-597

19

1405

1437

-32

1695

-290

20

1356

1381

-25

1400

-44

21

1333

1356

-23

1322

+11

22

1301

1325n

-24

1297

+4

23

1260

1265n

-5

1266

-6

28

648

647

+1

709

-61

30

583

592n

-9

643

-60

32

511

521 (M)

-9

593

-82

MC

743

740

+3

830

-87

                                                                                                                                                                                                                                               

NO EASTER BUNNY THIS WEEK!

It wasn’t the week we were looking for just prior to the Easter recess. A larger than usual offering of around 50,000 bales saw another week of falls for most categories, particularly in Melbourne. Due to the short week sale quantities were squeezed into two days selling and the second day in Melbourne saw the largest daily merino offering of the season which weighed heavily on the market.

Most merino categories saw double digit falls for the second week running and fine wools compared to this time last year are now up to 33% less and showing no signs of rebounding. The effects of the wet weather are being felt in the Sydney offering as many lines are containing banded colour and green, whilst many skirting lines have jowly, cotted edges which are receiving significant discounts. The better prepared clips, on the other hand, have been well supported and saw little downward movement for the week. It was particularly noticeable with skirtings where classers took the time to remove the heavily coloured, cotted edges, those lines probably ended the week dearer.

Crossbreds did little over the week, although the better lines in Sydney on the final day were perhaps a touch better. Cardings also saw reasonable competition with some re-offered lines containing noogoora burr selling for up to 150 cents above prices offered six weeks ago. Although fine wools are very flat, by comparison lambs wool of both merino and crossbred have been selling quite well.

We are led to believe from our Chinese sources that the stocks held at mills in China are low, particularly for 20 micron and coarser. The expected larger offerings in the first two weeks after Easter has probably caused a few to sit on the fence this week, and we believe come mid May offerings will be back around 40,000 per week or less. This will certainly underpin the market for these types, the fine wools we are not so sure about.

Sales recommence on the April 17 in all three centres with close to 60,000 bales to be offered.

This week we are listing some forward price trades for the week through Ag Concepts who we are now using. Ag Concepts will be familiar to many grain growers, but are new to wool. They are linking brokers with buyers for forward prices similar to the SFE contracts we were using, but without the SFE, as it has become dormant for wool since Man Financial fell over.

We hope our readers have a happy Easter and we will catch up on the 20th April.

 

 

                     

1

Viterra Wool

4362

2

Techwool Trading

3531

3

QLD Cotton

3192

4

Fox & Lillie

3066

5

Williams Wool

2759

6

Modiano (Aust)

2702

7

Lempriere (Aust)

2576

8

Chinatex (Aust.)

2223

9

Kathaytex

1590

                       

 

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

                Eastern 1191 cents ê 21cents compared with 29/03/12                           1.0283 ê 0.0079 compared with 29/03/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1228 cents ê 18cents compared with 29/03/12

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