Weekly Market Reports


8 February 2013

admin Macwool - Friday, February 08, 2013

WEEKLY MARKET REPORT

Week Ending 8th February 2013

AWEX Northern Micron Indices Comparison

AWEX INDEX

This Week

08/02/2013

Last Week

01/02/2013

Change

Last Year

09/02/2012

Yearly Change

17

1510

1505n

+5

1779

-269

18

1403

1414

-11

1590

-187

19

1340

1348

-8

1487

-147

20

1249

1260

-11

1400

-151

21

1233

1241

-8

1383

-150

22

1220n

1224n

-4

1349

-129

26

814n

814n

0

786n

+28

28

617

624

-7

615

+2

30

580

584

-4

547

+33

32

490 (M)

489 (M)

+1

495 (M)

-5

MC

749n

737n

+12

707

+42

          A SLIGHT FALL – BUT NOTHING TO WORRY ABOUT

The pattern we have seen over the four opening sales since the Christmas recess continued this week. A good rise in the market has been followed by a fall in prices and this was no different over the past fortnight. Whether the increased quantity in volume (25%) from the previous sale or the up and down movement dictated market movements, one may be hard pressed to find out. Another factor that can influence price movement is if one company that dominates a sale for a week, they may back off slightly in the next sale thus making the market cheaper. The market retreated by 10 cents to see the EMI at 1138 cents. This, coupled with two other small falls has the market losing only 22 cents as against two weekly gains  totaling 78 cents - a positive lead of 56 cents for the past five sales since this years resumption. Not all indicators recorded losses, as finer than 17.5 ended the sale 5 to 10 cents dearer on the back of a very stylish Goulburn selection on Thursday. The top price for the sale was 1700 cents for a 14.7 micron lot. In a precursor to the next few weeks with a sprinkling of NZ wool in Melbourne and Goulburn wool in this sale, a day’s selling in Launceston next week followed by the final Newcastle sale in two weeks, there is a significant volume of fine wool coming onto the market in the next three weeks. Melbourne’s best price was 2290 cents for a 12.5 micron lot with 3.7 % VM. Superfine woolgrowers are counting on Italy to bolster prices over the next few sales before the large selection of these types fades to smaller quantities. All the indicators fell from 18 to 23 micron but the losses were on the small side - 5 to 10 cents - of which most occurred early in the sale, as the market firmed on Thursday with the superior selection on offer, although the Melbourne and Fremantle indicators did falter on Thursday, both giving up 6 cents.

Skirtings had a quieter sale than the previous few weeks with the better length and style, low VM lots up to 10 to 15 cent’s higher with heavier VM types unchanged or the odd lot irregular. Cardings continued to climb the price ladder as all three centres posted good rises, especially in Melbourne, rising 26 cents. The three MCIs are all now over 700 cents - both Eastern Seaboard indicators on 749 and Fremantle at 709. All styles and types gained 10 to 15 cents. Crossbreds looked a little easier as their indicators were quoted up to 5 cents cheaper.

The market keeps bubbling along despite the three little corrections we’ve encountered recently. At 103 cents, the A$ is at its lowest point for a few weeks. The RBA’s reluctance to lower interest rates this week is probably the reason for the fall in the exchange rate, but with consumer spending in December lower than expected, pressure will be on the board to drop the rate by .25% in 4 weeks at the March meeting. Hopefully the lower A$ will help the market to keep progressing forward. All is in readiness for our inaugural Wool Store open day and Last Chance Ram Sale tomorrow, commencing at 10 am. If you are thinking of turning up please do so! There will be plenty of rams to inspect and guest speakers to listen to and have a look at just what happens to your bales after they drive out the front gate.      

Ag Concepts Fwd Price Trades W/E 08 February

MPG

Maturity

Low

High

MPG

Maturity

Low

High

21

20-Feb-13

1240

1240

 

21

05Jun-13

1220

1225

19

20-Mar-13

1335

1349

 

21

10-Jul-13

1220

1240

21

10-Apr-13

1220

1225

 

21

21-Aug-13

1220

1220

21

08-May-13

1220

1240

 

23

18-Sep-13

1215

1215

 

1

Viterra

7092

2

Fox & Lillie

4053

3

Lempriere (Aust)

3584

4

Techwool

3513

5

Kathaytex Aust.

2887

6

Modiano (Aust)

2674

7

QLD Cotton

2298

8

Chinatex (Aust)

2207

9

Dalgety Wool Exports

1822

 

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

1128 cents ê 10 cents compared with 01/02/2013                                     1.0316 ê 0.0095 compared with 01/02/2013

 

Northern Market Indicators (AUD cents/kg clean)

1153 cents ê  5cents compared with 01/02/2013

 

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