Weekly Market Reports


9 November 2012

admin Macwool - Friday, November 09, 2012

WEEKLY MARKET REPORT

Week Ending 9th November, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
09/11/12

Last Week
02/11/12

Change

Last Year
10/11/11

Yearly
Change

17

1425

1470

-45

1768n

-343

18

1301

1359

-58

1589

-288

19

1195

1258

-63

1473

-278

20

1099

1167

-68

1390

-291

21

1084

1126

-42

1326

-242

22

1047

1088

-41

1238

-191

23

1036n

1075n

-39

1126n

-90

28

584

599

-15

632

-48

30

531

551

-20

598

-67

32

469n

498n

-29

565n

-96

MC

627

625

+2

725

-98

INDIGESTION KICKS IN – BUT FOR HOW LONG?

A busy week no matter what angle you looked at it from. From a wool market that took a battering, to the US election, every hourly news bulletin seemed to have breaking news. What looked to be a mountain of money being splashed on the Cup and Oz Lotto with no one lining up to collect on the trifecta or first 4 or part of the $110M jackpot, no extra money could be found to keep the wool market from falling. Whether buyers were distracted by the gambling bug, the US elections or the non movement of interest rates it seems the rising $AUD and larger quantities were the telling blows for the market. The next three weeks has over 50,000 bales rostered for each sale, with next week’s catalogue (58,000) the largest since January. If these figures are correct, a total of 208,000 bales will be offered in November, the biggest volume in a 4 week period in 22 months. The market recorded heavy losses on both days to have the EMI give up 43 cents to sit at 1003 cents/kg. All fleece indicators lost 40 to 70 cents with 17 and finer and 21 micron and broader least affected (40 cents) while the middle micron indicators in the 17.5 to 20 micron ranges took the brunt of the falls losing 60 to 70 cents. Grower resistance to the falling market did kick in on the final day as the pass-in rate climbed to 28% - the highest in 3 years. We were fortunate enough to sell first on Wednesday and cleared 96% leaving us a bit perplexed by the big falls the market report was quoting that night. A closer look at our results shows high nkt low VM lots of fleece making from 15 cents above last week’s indicators to about 10 cents lower as the falling market built momentum as the sale progressed, after we sold, but there was a late rally in Sydney on Thursday giving hope for next week.

Skirtings opened the sale on a reasonable note but by Thursday had suffered losses not far behind their fleece counter-parts. Initially 19 micron and broader lost 10 cents but the final day of selling saw all types and descriptions at least 30 cents cheaper with burrier lots, over 10% VM, up to 50 cents back. Cardings bucked the falling trend as the MCI modestly added 2 cents to 627.  Locks gained 10 to 15 cents, crutchings 10 better and stains unchanged from last week. Crossbreds weren’t immune from the negative tone as a slight decrease on the opening day was doubled on Thursday. Indicators out to 30 micron lost 15 to 20 cents while 32s fell 30 cents.

A tough sale as the reality check we didn’t see coming hit with the force of Hurricane Sandy. With the exchange rate over 104 cents and plenty of wool on offer in the short term, the ride for the market could be a bumpy one for the final 5 sales before Christmas. Viterra is still not buying any fleece and may not be back in that sector of the market till late November, but have recommenced buying skirtings and crossbreds. According to one source, all the major buyers need to buy wool in the next 5 weeks giving hope that there will be some sort of recovery sooner rather than later.

  

                              

                   

Ag Concepts Fwd Price Trades W/E 9 November

MPG

Maturity

High

Low

20

12-Dec-12

1160

1160

21

23-Jan-13

1125

1090

19

06-Feb-13

1220

1220

21

20-Feb-13

1125

1090

21

06-Mar-13

1125

1090

               

 

1

Techwool Trading

3832

2

Lempriere (Aust)

3651

3

Fox & Lillie

2660

4

Chinatex (Aust)

2202

5

Modiano (Aust)

2196

6

Williams Wool

2127

7

Queensland Cotton

2104

8

Kathaytex

1814

9

Australian Merino Export

1761

                       

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

                Eastern 1003 cents ê 43 cents compared with 01/11/12                                  1.0413 é 0.0039 compared with 01/11/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1030 cents ê 45 cents compared with 01/11/12

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