Weekly Market Reports


8 June 2012

admin Macwool - Friday, June 08, 2012

WEEKLY MARKET REPORT

Week Ending 8th June, 2012

 Northern Micron Indices Comparison: Source of information: AWEX

 

AWEX
INDEX

This Week
08/06/12

Last Sale
01/06/12

Change

Last Year
09/06/11

Yearly
Change

17

1458n

1499n

-41

-

-

18

1333

1347

-14

2078n

-745

19

1289

1294

-5

1767

-478

20

1256

1268

-12

1568

-312

21

1254

1265

-11

1498

-244

22

1239

1247

-8

1446n

-207

23

1217n (M)

1233 (M)

-16

1306n (M)

-89

28

622 (M)

631 (M)

-9

673 (M)

-51

30

577n (M)

577 (M)

0

611 (M)

-34

32

477n (M)

479 (M)

-2

560 (M)

-83

MC

626

629

0

770

-144

STILL FALLING

We thought we were close to the bottom last week, but alas we are even closer. A softer tone to the start of this sale has every-one wondering just where is the lowest point of the market and when will it be reached? The smallest national offering in 12 months, 27,000 bales, and an exchange rate under parity with the $US and even another interest rate cut  have well and truly failed to put the brakes on this market’s retreat. Sure the falls in the market have slowed to a canter, rather than a gallop, but still a fall is a fall and nothing according to buyers and traders points to a positive outlook either soon or later as business is almost impossible to book up at the moment and mills are now scrutinizing every bale with a fine tooth comb before it hits the scour and are claiming for any abnormality they can find. The EMI has now recorded falls over the past 10 consecutive selling days equaling a similar run of losses last Sept/Oct. Discounts for VM continue to grow as a line with 5.2% VM attracted a 170 cent discount from an FNF type whereas low VM lots under 2% look to have softened their discounts somewhat. Once again the finer microns took the brunt of the falls as 17.5 and lower fell 25 to 40 cents (with some lots up to 100 cents off) as little competition on these types is allowing China to let them free-fall to levels unfortunately not yet reached. As reported last week the ultra-fine market seems to be making some sort of a recovery as 2 bales of 12.1 micron made 12,000 cents and a 12.7 micron bale  reaching 9,000 in Melbourne. 18 to 23 microns recorded falls of 5 to 15 cents, in line with last week’s reductions. The 19 to 21 micron differential is at its narrowest since 2003, just 35 cents, with 18 to 23 micron only a 110 cent gap. This week 12 months ago these gaps were 269 cents and 764 cents. How things can change!

Skirtings also suffered under the weight of a non-committal market-place. Most types finer than 19 micron ranging from 3 to 6% VM finished the sale 20 to 30 cents down while the heavier VM lots gave up 20 cents late on the second day. The only types to escape any discounts were the better style light burr lots. Discounts for cott and colour again look to be softer as freer types of these faults come onto the market allowing more blending to take place between the “good and bad” lots. It was a mixed week for the cardings as locks finished the week unchanged as stains were in sellers’ favour and crutchings quoted at 10 cents off last sale’s prices. The MCI lost 3 cents to sit at 626 cents. Crossbreds had a mixed week as 26, 30 and 32 microns remained solid but 28s fell 10 cents.

Just three sales remain now till the end of the season and nothing indicates any sort of recovery in the market. Next week all three centres are back on line with Macwool selling next Thursday. For growers in the Western Division the Louth Field Day will be held tomorrow, Saturday, 9th June. Don and Sharpy will be attending and look forward to catching up with everyone.      

 Ag Concepts forward price trades W/E June 8

MPG

Maturity

High

Low

21

8-Aug-12

1235

1230 

21

22-Aug-12

1220

1220 

21

5-Sep-12

1225

1225

21

19-Sep-12

1230

1215

21

17-Oct-12

1225

1215

21

28-Nov-12

1215

1210

21

12-Dec-12

1220

1185

21

20-Feb-13

1180

1180

21

22-May-13

1185

1180

              

1

Fox & Lillie

2816

2

Viterra Wool

2384

3

Lempriere (Aust)

2237

4

Queensland Cotton

2036

5

Techwool Trading

1820

6

Williams Wool

1400

7

AS Gedge

1229

8

G Schneider Aust.

999

9

Chinatex

986

         

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

                Eastern 1079 cents ê 17 cents compared with 01/06/12                       0.9952 é 0.0237 compared with 01/06/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1101 cents ê 17 cents compared with 01/06/12

Comments
Post has no comments.
Post a Comment





Trackback Link
http://www.macwool.com.au/BlogRetrieve.aspx?BlogID=4383&PostID=298977&A=Trackback
Trackbacks
Post has no trackbacks.