WEEKLY MARKET REPORT

Week Ending 9th March, 2012

Northern Micron Indices Comparison: Source of information: AWEX

MARKET OKAY BUT POISED FOR A RISE?

The first 3 day sale since August started poorly. As is the case after nearly all Newcastle sales, there was a “style adjustment” between the superior New England style wools and the Sydney wools. This adjustment amounted to a 20 to 30 cent fall for 18.5 and finer with the 19 micron and broader indicators bucking the trend of the fine wools by adding 5 to 15 cents. Wednesday saw a mixed market as 18 to 19 micron were in sellers’ favour with 20 to 21s in buyers’ favour and 23 micron giving up 20 cents. The progressive fall in the exchange rate could have influenced a revival in exporter interest as the final day saw prices lift 10 to 25 cents for 18 to 21 microns. The markets was split in two by week’s end as 18.5 and finer were quoted 15 to 25 cents lower and 19 to 21 microns 15 to 30 cents better than the previous week. The highlight of the sale was one of our lots achieving the second highest price nationally. Michael Patterson of Grattai via Mudgee took this honor with a price of 1679 cents for a 1 bale line of SUP AA M (15.5-1.0-76.5/70mm-41nkt). G SCHEINDER AUSTRALIA secured this lot for spinning and weaving in Biella, Italy for women’s suiting in the USA. This week’s top price went to a 15 micron lot sold in Melbourne for 1710 cents.

Skirtings also suffered from a style adjustment early in the week as all descriptions fell by 20 cents with low VM types most affected in the predominately 19.5 and finer offering. Buyers then pulled back their limits by 5 to 10 cents on burrier types over 5% VM on Wednesday with lots carrying cott and colour attracting bigger discounts. Thursday saw the third smallest skirting selection of the season but this lack of quantity didn’t help low VM lots, finishing irregular and all others unchanged. Cardings opened the sale with a bang as the MCI added 12 cents to sit at 738 cents after locks and stains gained 15 to 20 cents with crutchings in sellers’ favour. Stains couldn’t maintain their levels of the previous day with 20 micron and coarser giving up that advantage on Wednesday as locks and crutchings were unchanged through to the final lot on Thursday. The second largest Crossbred offering for the season (nearly 25%) saw minimal movements as 28 and 30 microns ended the week in buyers’ favour.        

Preparations are well under way for our inaugural wool-store dinner to be held March 24. The night will be highlighted by speeches by AWI CEO, Stuart McCullough, and the official opening of the new store by AWI Chairman Wal Merriman. But it could be the Fashion Parade that steals the show with a collection of the latest from New York fashion week, a showcasing of the latest in the sporting and outdoor line and a special segment from former Nyngan girl Brigid McLaughlin with her own designs. RSVPs are due in Monday and, with over 200 responses in so far, a big night is in store! The next four weeks will see a drop off in national offerings to low 40,000s due to flooding preventing movement of wool into broker’s stores. This may be a good opportunity to offer wool if you are holding any as buyers may come under pressure to secure volume as smaller quantities could see the market rise as the anticipated increase in competition on less volume leads to higher prices. Macwool will offer 868 bales second up on Thursday as shearings and contractors play catch up under blue skies!

MAJOR AUCTION BUYERS (Bales)

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

                Eastern 1216 cents é 3cents compared with 01/03/12                          1.0594 ê 0.0149 compared with 01/03/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1245 cents ê 1cent compared with 01/03/12