WEEKLY MARKET REPORT

Week Ending 7^th March, 2014

AWEX Northern Micron Indices Comparison

STEADY AS SHE GOES….

Skirtings mirrored the fleece movements as an opening day loss of 15 to 20 cents was somewhat negated by a firming market on the final day. The carding market was split in two as a solid opening day led to a sharp fall for stains (back by 30 cents) on the final day to see the MCI lose 3 cents for the week. Crossbreds bucked the falling trend of their merino counterparts as solid gains late in the week saw increases of 5 to 10 cents in Sydney and 5 to 20 cents in the south. This price rise could be due to a drop in supply for this sector - back to 22% of the selection on the Eastern Seaboard as quantity should slowly dwindle as we move into autumn shearing.

Techwool flexed their muscle this week to top the buying list in all sectors bar the merino skirtings - in all buying over 5,500 bales for the week. Fremantle based PJ Morris were second in the fleece sector with Michell P/L buying 14% of the oddment catalogue and the big Chinese top-maker, Tianyu, way out in front for merino skirtings buying 20% of the selection.

Now onto China: our intrepid travellers haven’t got lost yet and seem to be enjoying themselves. Monday was spent in Hong Kong hosted by AWI.  The day started with a tour through a high end knitwear factory, L plus H, a small boutique factory employing just 60 people. They produced sweaters, cardigans, dresses, jackets and coats. The quality of the workmanship was outstanding as the attention to detail was very impressive down to the tape measure being run over sleeve, collar and leg size time after time. Next was a visit to the AWI/Woolmark offices in Hong Kong where everyone left in no doubt that your 2% wool tax levy is being well invested - especially in this part of the world where so much wool finishes up. Next was a visit to the Hong Kong Textile and Clothing University where students are educated for the apparel and fashion industries. This facility came complete with carding machines to spinning, weaving and dyeing machines. The visit also coincided with a fashion show opening complimented with Aussie wine!

Next week's sale will see the 4^th sale in a row that national totals are in low to mid 40,000s. This still may not be enough to give the market a lift by itself. We will need a lift in demand to help the market to rise.         

Main Buyers (This Week)

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

1072 cents ê  5 cents compared with 27/02/2014                       0.9011 é 0.0069 compared with 2/02/2014                          

 Northern Market Indicators (AUD cents/kg clean)

1088 cents ê  7 cents compared with 27/02/2014