WEEKLY MARKET REPORT

Week Ending 5^th October, 2012

Northern Micron Indices Comparison: Source of information: AWEX

A SURPRISING LIFT

The market took a welcome turn this week, contrary to early forecasts. Our market intelligence led us to believe it to be another cheaper market - this prediction broadcast on 2WEB on our weekly market preview every Tuesday at 1.30pm. Melbourne did in fact open cheaper with finer types under 19 microns giving up 15 to 30 cents with medium microns up to 10 cents off the pace. Wednesday saw a consolidation as Sydney had a rock solid day with Melbourne’s medium lots regaining their previous day’s losses with finer types 10 to 20 cents down. Fremantle finished the day well as all indicators added 10 to 15 cents. The positive mood from Fremantle crossed the continent on Thursday with the 2 Eastern Seaboard centres adding 16 cents to their regional indicators, clearing over 96%. The AWEX EMI lifted 16 cents to 956 cents with 17.5 and finer unchanged. However, selected superfine lots were aggressively pursued - a good precursor for next week’s Newcastle sale. 18 to 19 and 23 microns rose 10 to 15 cents while 19.5s to 22s recorded gains of 20 to 30 cents.

Skirtings continued on their merry way as both days saw good increases to the tune of 15 to 25 cents with, again, the odd superfine lot chased hard. Even the odd lot carrying burr with cott and jowl can find a home with the better style low VM types as the clearance rate in Sydney and Fremantle was above 98%. Cardings continued on their road to recovery as locks were 15 cents higher with stains and crutchings in sellers’ favour (the indicator up 6 cents to 589). Crossbreds had a mixed sale as 28s and finer finished a touch dearer as 30 microns lost 5 cents with 32s adding 10 to 15 cents.

Attention now shifts back to Newcastle for their second sale of the season. A look at the individual micron indicators sees not much change from their previous sale 5 weeks ago. The latest release of AWTA testing data shows decreasing volumes compared to last year. September is back 14% for lots tested and 5% down for number of bales and weight tested against September 2011. 83 mkg has been tested July to September down from 87 mkg last year (21,800 bales). Finally, a reminder about the woolgrower meetings AWI are running regarding Woolpoll 2012, Global market outlook, Future research and development investment and marketing strategies in our key markets and a performance report for the past three years from AWI CEO Stuart McCullough. These meetings will take place on Thursday, 18^th October. The 11.00am meeting is at the Nyngan RSL Club and the Louth meeting at the Tennis Club at 6.00pm. Attendance needs to be registered by phoning 1800 070 099 and is thoroughly recommended to see how your wool tax is spent.                

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

                Eastern 956 cents é 16 cents compared with 27/09/12                                   1.0230 ê 0.0179 compared with 27/09/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 976 cents é 22 cents compared with 27/09/12