Weekly Market Reports


7 June 2013

admin Macwool - Friday, June 07, 2013

WEEKLY MARKET REPORT

Week Ending 7th June, 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

07/06/2013

Last Week

31/05/2013

Change

Last Year

08/06/2012

Yearly Change

17

1309

1296n

+13

1458n

-149

18

1219

1203

+16

1333

-114

19

1183

1173

+10

1289

-106

20

1159

1141

+18

1256

-97

21

1156

1138

+18

1254

-98

22

1158

1136n

+22

1239

-81

26

828n

816n

+12

882n

-54

28

641

630

+11

629

+12

30

596

582

+14

581

+15

32

483n

483n

0

485n

-2

MC

786

780

+6

626

+160

MARKET REBOUNDS DESPITE VITERRA’S ABSENCE

Last week’s hiccup was just that, a blimp on the radar as the market rebounded with a vengeance. Last sale’s 6 cent fall was well and truly cancelled out with a 20 cent rise this week, to have the EMI at 1052 cents - just 27 cents below the corresponding sale a year ago. In US cent terms the gap is wider (79 cents) due to the falling AUD$ which last night was trading below 95 cents. The exchange rate has now slid a full 10 cents since peaking at 105.22 US cents 8 weeks ago. In this period the EMI has added 56 cents. With just the two Eastern Seaboard centres operating and only a 1 day sale in Sydney the national catalogue only numbered 23,500 bales. The stars were aligned to see the market recover from last week’s softer tone. Good increases across all micron categories saw lifts of up to 20 cents in the medium to broader types in Sydney. Melbourne lifted even further on Thursday to have their indicators 15 to 20 cents above Sydney levels, with just 1% of their offering passed in on Thursday - their biggest clearance since January, 2011.

The room 2 catalogues weren’t left behind as all sectors traded dearer. The good selection of skirtings being presented to the buyers this Autumn/Winter added up to 30 cents for the better style and low VM (3 to 5%) types with the higher VM lots 10 cents dearer. Cardings had another good sale, particularly in Melbourne as their MCI posted a 32 cent jump to crack the 800 cent barrier (maybe on the back of their smallest offering of oddments for the season) now 802 with Sydney’s MCI at 786, a 6 cent lift, now totaling almost 100 cents for the past five weeks. Crossbreds continued to gain momentum with a 10 to 15 cent rise for most indicators.

With some of the smallest catalogues in 12 months, coupled with the favourable exchange rate and renewed demand, the market has certainly kicked along over the past four weeks and, with the final three sales of the season offering an average of 31,000 bales, buyers may well be under some pressure to fulfill commitments. The strength of medium types is evident as the gap between 19 and 23 micron is only 37 cents with 18s just another 36 cents better than 19s. The lacklustre state of the finer types, under 18, may become clearer as delegates gather in Biella, Italy next week for the 82nd IWTO congress. Hopefully some good can come out of this talk-fest, especially for the long suffering super-fine woolgrowers and us left at home!

Export figures for April show just how reliant we are on China, setting new records for market share in two separate categories. China took a massive 86% of all exports for 19 micron and finer, while a whopping 95% of the 24 to 27 micron range was shipped to China. In other figures released by AWTA for May total lots, bales and weights compared to 12 months ago are running at -13%, -10% and -9% respectively. The corresponding figures for July 2012 till May this year are running line ball with lots down by 1.5%, with bales and weights both up almost 3%.

Next week sees Fremantle back on line with a national catalogue of 33,000 bales as all centres conduct 2 day sales. We sell on Wednesday, offering 1370 bales, the third largest catalogue in Sydney. The repercussions of Viterra and Dalgety not continuing to buy wool have not as yet been felt. The stark reality of a buyer of Viterra’s size purchasing almost 250,000 bales/year worth $350 to $400 million is a void that is going to be hard to fill by any buying organisation. Hopefully the mills that Viterra and Dalgety supplied can source their requirements from other buyers and finance can be readily obtained.

Ag Concepts Fwd. Price Trades W/E 7 June, 2013

 

Maturity

Low

High

21

21-Aug-13

1140

1140

21

18-Sep-13

1120

1120

21

23-Oct-13

1115

1115

 

1

Techwool

3151

2

Australian Merino Exp.

2480

3

Queensland Cotton

2183

4

Lempriere (Aust)

2026

5

Fox & Lillie

1715

6

Modiano (Aust)

1289

7

G Schneider (Aust)

708

8

PJ Morris

598

9

Victoria Wool Process.

529

 

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

1052 cents é 20 cents compared with 31/05/2013                                 0.9458 ê 0.0223 compared with 31/05/2013

 

Northern Market Indicators (AUD cents/kg clean)

1062 cents é 14 cents compared with 31/05/2013

 

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