WEEKLY MARKET REPORT

Week Ending 6^th May  2011

Northern Micron Indices Comparison: Source of information: AWEX

THE BEGINNING OF A NEW ERA

Wool sales resumed this week after a short recess and the highlight for us was offering the first catalogue under the Don Macdonald & Co banner. Sydney held a two day sale offering a total of 12,756 bales with our sale being on Wednesday with 597 bales for sale. The market understandably opened cheaper against a dollar which was close to 5 cents higher than the pre-Easter sale and Melbourne on Tuesday saw falls of 30-40 cents for the medium types and up to 50 cents for the finer end. Sydney opened unchanged on Melbourne and firmed as the day progressed which was good for us as we sold late on the day. The dollar eased further as the week went on and Thursday responded positively with some categories posting gains above the previous sale close.

Our sale was well attended by growers and friends with the added interest of a bottle of Penfolds Grange Hermitage being offered to the buyer of the top price for the catalogue. Of the possible two lots which we would have expected to make top price, the first lot sold 140 cents clean above the next lot of similar micron for the day. The second lot, belonging to KN & MM Foran, Gilgandra, sold after intense competition to Scott Sealey of Viterra - 100 cents above the best quote for any 17.0 micron  ranging lot for the week. The premium paid for these two lots amounted to close to $3000. The $520 paid for the Grange turned out to be a good investment.

The sale averaged $1460 a bale across all types with the only lines to struggle being either poorly prepared clips or cast lines showing heavy colour and cott. As the weeks progress and weekly offerings reduce we expect that competition for supply should keep the market on a firm footing.

Next week there will be about 10,500 bales in Sydney with Don Macdonald & Co offering close to 900 bales.

Agrisk – CBA Wool Futures Mid-Point Quotes 06/05/2011

MAJOR AUCTION BUYERS (Bales)

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

                Eastern 1306 cents (-19) compared with 22/04/11                              1.073 ↑ 0.021 compared with 22/04/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1369 cents (-19) compared with 22/04/11