Weekly Market Reports


10 June 2011

Friday, June 10, 2011

WEEKLY MARKET REPORT

Week ending 10th June 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
10/06/11

Last Week
03/06/11

Change

Last Year
10/06/10

Yearly
Change

18

2078n

2091n

-13

1183

+895

19

1767

1759n

+8

1091

+676

20

1568

1518

+50

968

+600

21

1498

1444

+54

948

+550

22

1446n

1386n

+60

920

+526

23

1314n

1268n

+46

898

+416

24

1093n (M)

1078 (M)

+15

-

-

26

875n (M)

867n (M)

+8

630

+245

28

673 (M)

671

+5

483

+190

30

611 (M)

616n

-1

434

+177

32

560 (M)

558n

+1

375

+185

MC

770

747

+23

646

+124

ANOTHER CRACKER

History was made this week as the EMI broke through the 1,400 cent barrier. With just 22,800 bales on offer on the Eastern seaboard with no sale in Fremantle, this week’s offering was the smallest in 2 years. The EMI continued further into uncharted territory as a 1.5% (22 cent) rise saw the EMI go to 1,420 cents. Again, as has been the case for a few weeks, the 19.5 to 23 micron categories led the charge recording rises of 35 to 60 cents and 19s up by just 8 cents. The fine wool sector of 18.5 and finer had mixed results as a 15 cent fall for 18 to 18.5  were somewhat negated by the odd specialty lot dearer  as the quantity of these types dwindles. The fickle marketing of superfine wool was no more evident than in Melbourne this week as three lots under 13 micron were all passed in for 8,000 and 9,000 cents! The strength of the market can bee seen in fleece prices as we sold just 10 lots for under 900 cents with 12 lots making 900 to 1,000 and all other 53  lots realising over 1,000 cents. In the six weeks since Easter, indicators have gained 80 cents for 20 and 24 microns,  130 cents for 19 and 23, 100 dearer for 21s with 19.5 up 175 and the stand out performer being 22 microns, climbing a massive 220 cents - incredible gains! Finer indicators in comparison are around 30 to 70 cents better.

Skirtings had a mixed week as the better style low vm lots under 5% tended dearer with a poorer selection of burrier types over 6% with an increased amount of cott and colour 20 cents lower on the opening day. All types closed fully firm on the final day.  Hopefully this may see the last of big volumes of inferior skirtings. Cardings continued their recovery as the MCI added 23 cents to its value with Locks putting on 35 cents to their value, stains up by 10 cents and crutchings 10 to 20 higher than last week’s quotes. The very small offering of Crossbreds left all indicators unchanged but crossbred lambs did seem to lift in value as some passed in lots from 2 weeks ago made some good gains.

So where to from here? It is hard to see when the market will peak as everyone with an opinion has a different number in mind which varies by hundreds of cents with buyers holding stock tipping further rises and buyers caught short with no stock talking it down. One thing for certain is that the volume is low and for the next 3 weeks national offerings are under 30,000 each week which will keep pressure on to fill orders. Next week will see Don Macdonald & Co offer their biggest catalogue to date with 1340 bales on offer early next Thursday - after NSW equal the State of Origin series at 1 all on Wednesday night!

     

AgRisk FDIC Indicative Quotes 10/06/11

20

21

22

AUCTION

1567.5

1508.5

1444.5

Jun-11

1578

1539

1473

Aug-11

1468

1429

1363

Oct-11

1405

1366

1300

Dec-11

1354

1315

1249

Feb-12

1336

1297

1231

Apr-12

1304

1265

1199

Jun-12

1269

1230

1164

Aug-12

1259

1220

1154

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

2444

2

Techwool Trading

1947

3

Fox & Lillie

1898

4

Queensland Cotton

1560

5

Lempriere (Aust)

1500

6

AS Gedge

1455

7

Modiano Aust.

1258

8

Victoria Wool Proc.

965

9

Michell Australia

413

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

                Eastern 1420 cents (é22) compared with 03/06/11                                                1.0580 ê 0.0038 compared with 03/06/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1475 cents (é19) compared with 03/06/11

3June 2011

Friday, June 03, 2011

WEEKLY MARKET REPORT

Week ending 3rd June 2011

 

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
03/06/11

Last Week
27/05/11

Change

Last Year
03/06/10

Yearly
Change

17

2408n

2408n

0

1278

+1130

18

2091n

2094n

-3

1180

+911

19

1759n

1749

+10

1078

+681

20

1518

1498

+20

941

+577

21

1444

1423

+21

927

+517

22

1386n

1360n

+26

904

+482

23

1268n

1251n

+17

886

+382

24

1078 (M)

1049 (M)

+29

-

-

26

867n (M)

-

-

614

+253

28

671

676n

-5

468

+203

30

616n

618n

-2

424

+192

32

558n

560n

-2

356

+202

MC

747

742

+5

598

+149

ARE WE HEADING FOR 1500?

It was a case of deja vu as the market was almost a carbon copy of last week. This was also the case in the fortnight before as two weeks of excellent gains earlier in May have now been followed up by two weeks of good gains. The EMI posted a 14 cent rise to sit at 1398 cents (tantalisingly close to the magical 1400 cent level). Finer indicators struggled to take any direction and finished basically unchanged except for 18 and 18.5 which were in buyers’ favour. The better style finer lots in Sydney and an excellent selection of Launceston stored wool saw these types close up to 30 cents higher due to Italian mills chasing these lots. Most of this week’s gains came from the middle microns where 19s lifted by 10 cents and 19.5 to 24s rose 15 to 25 cents regardless of style and, to a certain exten,t vm.  All descriptions sold to stronger competition under pressure from a supply squeeze that won’t go away any time soon. Medium wool seems to be the star of the show lately as 21s with mid to high 60s yield up to 4% vm are making in the low 900s - an incredible number! Also helping the market is the improving selection, clips are not as cotted or contain less colour as was the case a few weeks ago.

Once again skirtings followed the lead of the fleece room as the few lots of low vm types, especially in Melbourne, added up to 60 cents (most likely the Launceston wools). The burrier pieces and bellies in Sydney weren’t to be out-done as these lots now containing a lot less cott and colour than three weeks ago were pushed 20 cents higher. It may well seem that the worst of the selection is behind us and blending of good and inferior types is easier again as it was pre Easter. Cardings snapped a six week losing streak to push the MCI up 5 cents as locks and crutchings added 10 cents with stains unchanged. Crossbreds had a mixed week as losses on Wednesday did regain some ground on Thursday to finish the sale up to 5 cents cheaper.

Buyers purchasing strategies seem to have changed at the moment. The age old practice of booking up wool then beating each other up to buy at the right price has now been replaced with a” buy today and offer out tonight” pattern that is working to all parties’ expectations. With supply still the dictating factor, the selection on the improve and June futures trading at 1480 cents, 40 above the market, we could well see the EMI climb above 1400 cents. Don Macdonald & Co. will offer 870 bales first up on Thursday as part of just 22,000 bales between Sydney and Melbourne with Fremantle having a week’s recess.                     

AgRisk FDIC Indicative Quotes 03/06/11

20

21

22

AUCTION

1520.5

1446.5

1389.0

Jun-11

1508

1469

1403

Aug-11

1432

1393

1327

Oct-11

1366

1327

1261

Dec-11

1315

1276

1210

Feb-12

1297

1258

1192

Apr-12

1265

1226

1160

Jun-12

1230

1191

1125

Aug-12

1220

1181

1115

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

4015

2

Techwool Trading

2857

3

Fox & Lillie

2607

4

Modiano Aust.

2227

5

Lempriere (Aust)

2204

6

Queensland Cotton

2073

7

AS Gedge

1949

8

Chinatex (Aust)

1145

9

Victoria Wool Proc.

611

 

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

                Eastern 1398 cents (é14) compared with 26/05/11                            1.0618 é 0.0034 compared with 26/05/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1456 cents (é12) compared with 26/05/11

27 May 2011

Friday, May 27, 2011

WEEKLY MARKET REPORT

Week ending 27th May 2011

 

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
27/05/11

Last Week
20/05/11

Change

Last Year
27/05/10

Yearly
Change

17

2408n

2408n

0

1266

+1142

18

2094n

2094n

0

1172

+922

19

1749

1739

+10

1070

+679

20

1498

1472

+26

930

+568

21

1423

1402

+21

917

+506

22

1360n

1329n

+31

902

+458

23

1251n

1243n

+8

883

+368

24

1049 (M)

1027 (M)

+22

834

+215

25

-

932n (M)

 

-

 

26

-

869n (M)

 

613

 

28

676n

660

+16

464

+212

30

618n

594

+24

412

+206

32

560n

543n

+17

356

+204

MC

742

754

-12

582

+160

CLOSING IN ON A RECORD HIGH

Another rise in the wool market this week, albeit a small one, as the EMI added 20 cents compared to last week’s 40 cent jump. The EMI now is at 1384 cents, just a hair’s breadth away from the late March high of 1388 cents. For the first time since 1988 all three selling centres have 21 microns above 1400 cents clean - a great statistic.  AWEX failed to find any increases in the finer microns to leave 18.5 and finer unchanged. The medium types added to their values of previous weeks with 19, 19.5 and 23s gaining around 10 cents with 20 to 22 microns posting gains of 20 to 30 cents. With the national weekly offering now well under 40,000 bales for the foreseeable future, pressure was on buyers as competition for the “straight’” types (of which volumes have shrunk) heats up as cott and coloured types still outweigh the better lots on offer - although the degree of faults seems to be less and less as the weeks go by as sheep being shorn now aren’t as cotty or coloured as clips shorn pre Easter. Sheep shorn now weren’t as badly affected  by water due to their shorter staple length late last year as were sheep with longer wool that were shorn earlier this year.

Skirtings followed the lead of the fleece room as low vm and better style types were 50 to 60 cents higher with higher vm pieces adding up to 30 cents mainly due to a lower prevalence of cott, colour and jowl in clips now on offer. Oddments, however, bucked the rising trend after a modest gain on the opening day, lost 14 cents on Thursday and now a run of 6 weeks of losses in a row after reaching a high of 850 cents in early April. Crossbreds, like merino fleece and skirtings, also had a positive tone recording 15 to 25 cent rises by the close of sales on Thursday.

Even though the market was a bit subdued when compared to the two previous weeks, futures trading at 1440 cents for June coupled with an improving selection  and weekly offerings  averaging  just 31,000 bales for the next 3 weeks and with a relatively stable $AUD we could see the EMI crack the 1400 cent barrier. This would be an incredible achievement if this milestone were reached. Certainly the lack of supply will dictate market movement more than any other factor.  Next week will see Don MacDonald & Company offer 820 bales with 36,000 on offer nationally.

AgRisk FDIC Indicative Quotes 27/05/11

20

21

22

AUCTION

1497.5

1425.5

1368.5

Jun-11

1449

1410

1344

Aug-11

1390

1351

1285

Oct-11

1328

1289

1223

Dec-11

1300

1261

1195

Feb-12

1270

1231

1165

Apr-12

1247

1208

1142

Jun-12

1195

1156

1090

Aug-12

1185

1146

1080

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

2794

2

Fox & Lillie

2682

3

Viterra Wool

2364

4

Modiano Aust.

2332

5

AS Gedge

1968

6

Lempriere (Aust)

1719

7

Queensland Cotton

1654

8

Chargeurs Aust.

1327

9

Victoria Wool Proc.

1194

 

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

                Eastern 1384 cents (é20) compared with 19/05/11                            1.0584 ê 0.0077 compared with 19/05/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1444 cents (é15) compared with 19/05/11

20 May 2011

Friday, May 20, 2011

WEEKLY MARKET REPORT

Week ending 20th May 2011

 

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
20/05/11

Last Week
13/05/11

Change

Last Year
19/05/10

Yearly
Change

17

2408n

2407n

+1

1263

+1145

18

2094n

2051n

+43

1154

+940

19

1739

1654

+85

1050

+689

20

1472

1390

+82

924

+548

21

1402

1330

+72

912

+490

22

1329n

1270n

+59

898

+431

23

1243n

1216n

+27

882

+361

24

1027 (M)

1018n (M)

+9

830

+197

25

932n (M)

-

-

698

+234

26

869n (M)

847n (M)

+22

600

+269

28

660

640

+20

451

+209

30

594

581

+13

401

+193

32

543n

531n

+12

355

+188

MC

754

774

-20

576

+178

MARKET CONTINUES THE  RECOVERY

Another good week for the market as looming tight supplies and a relatively stable exchange rate contributed to the AWEX EMI adding 41 cents to sit at 1364 cents. Only the finer end, under 17 micron and Merino Cardings saw little movement or a cheaper trend. The EMI is fast approaching the peak of mid-March of 1388 cents with 19 to 22 micron indicators  now at their highest level and finer types not far off their peaks of the Newcastle sale held in early March. Rises of 30 to 90 cents across all indicators had buyers scurrying to secure quantity with the price gap between good lots and cotted and coloured fleece lines widening with the odd line of better style fleece up to 100 cents dearer.  It was pleasing however to see well grown bright burry wools also rally in line with the F/NF types.

 History was made on Thursday as we sold the highest price lot in Australia, Luke sold his highest priced lot ever (Don’s now envious that he didn’t attend the sale) and more than likely, the highest priced 20.3 micron ever sold at auction anywhere around the globe. This 201 kg bale made 6,200 cents greasy or 9,524 cents clean. The bale was generously purchased by Modiano Australia. The wool was sourced from rams sold by Tony and Penny Inder at their Avondale ram sale, gratefully donated by the ram buyers.  Tony shore the rams himself and all proceeds ($12,462) will go to REDEKITE, an organisation supporting children through cancer. This is held in conjunction with the Ballimore Head Shave to be held this Sunday at the Ballimore Pub. More info is at swalker@redkite.org.au or inder13@ipstarmail.com.au 

Merino skirting’s had a mixed week with lots containing low vm and little cot and colour maintaining good to dearer levels, and as has been the case for a good while, lots with heavy cot and colour easing in price.  Carding’s lost ground on both days with the MCI dropping 20 cents, the 5th weekly drop in a row contributing to the highest pass in rate of this section of the market in 7 months. Crossbreds lifted in value with the finer end (26 to 28’s) up by 20 cents and the 30 and 32 micron indicators 10 to 15 dearer.   

In other news Don Macdonald & Co are pleased to announce that Ian Sharp (formerly Elders NSW Technical Manager) will be joining the team adding considerable knowledge and experience built from almost 40 years as a wool broker. Ian will be based at our Yennora office, valuing and auctioneering.

Don Macdonald & Co will offer 792 bales next Thursday with 33,495 to be offered nationally.

20

21

22

AUCTION

1464.0

1396.5

1325.5

Jun-11

1392

1353

1287

Aug-11

1353

1314

1248

Oct-11

1291

1252

1186

Dec-11

1263

1224

1158

Feb-12

1233

1194

1128

Apr-12

1210

1171

1105

Jun-12

1158

1119

1053

Aug-12

1148

1109

1043

MAJOR AUCTION BUYERS (Bales)

1

Fox & Lillie

4136

2

Techwool Trading

3272

3

Viterra Wool

3056

4

Lempriere (Aust)

2411

5

AS Gedge

2221

6

Williams Wool

1906

7

Victoria Wool Proc.

1500

8

Queensland Cotton

1370

9

PJ Morris

1011

 

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

                Eastern 1364 cents (é41) compared with 12/05/11                            1.0661 ê 0.0118 compared with 12/05/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1429 cents (é45) compared with 12/05/11

13 May 2011

Friday, May 13, 2011

Week ending 13th May  2011

 

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
13/05/11

Last Week
06/05/11

Change

Last Year
13/05/10

Yearly
Change

17

2407n

 2399n

+8

1255

+1152

18

2051n

 2026

+25

1154

+897

19

1654

 1629

+25

1057

+597

20

1390

 1358

+32

924

+466

21

1330

 1286

+44

913

+417

22

1270n

 1246n

+24

898

+372

23

1216n

 1191n

+25

881

+335

24

1018n (M)

 1008n (M)

+10

-

-

26

847n (M)

 837n (M)

+10

597

+250

28

640

 640

0

451

+189

30

581

 576n

+5

397

+184

32

531n

 527 (M)

+4

352

+179

MC

774

 781

-7

587

+187

MARKET STAGES A RECOVERY

The recovery of last Thursday kept going as the market has clawed back some of the ground lost before Easter. The EMI added 17 cents to now sit at 1327 cents. Predictions of a cheaper market by as much 40 cents for “off style” types early in the week were off the mark.  The change in sentiment actually came from the annual IWTO conference being held in Hangzhou, China. At the dinner held on Tuesday night, hosted by the Chinese Wool and Textile Association, reference to supply of wool staying at these levels (or even slightly lower) led to a stampede of delegates to ring their agents to book up wool post–haste. This frenzy of business led to the market  adding 10 to 25 cents for all indicators out to 23 micron on Wednesday - this despite the exchange rate climbing from under 107 cents last Friday to over 108 cents early this week. Thursday’s market continued to rise to the tune of 10 to 20 cents for 19.5 and broader while finer types held their ground. As is always the case, discounts for colour, cott and vm shrunk noticeably which benefitted us greatly as just 6 out of 88 fleece lots were under 2% vm with a good number of lots containing reasonable amounts of cot and colour of which most cleared to the trade. By week’s end rises of 15 to 45 cents were the norm for most indicators leaving the EMI 51.2% higher than the same week 12 months ago. The highlight of the week was the sale of 2 bales of 1PP a/c The Wool Factory from Horsham in Victoria, with both bales achieving a price of 20,000 cents. One of their other bales bought 15,000 cents with the 3 bales averaging 12.1 micron, 0.1 vm, 75%, 76mm and 40nkt. G Schneider secured these 3 bales, with one bid apparently, for knitting and weaving in Biealla, Italy.

Skirtings had mixed results with the heavy-fault and cotted types continuing to slip in price while selected lots of finer types with low vm gained as much as 50 cents. Some lots with slight cot and heavy vm, up to 15% sold to a dearer trend as well. Cardings hung on well until late on Thursday when locks and stains lost 10 cents. Crossbreds struggled to move in any direction with the exception of some better style 29 and 30 micron lots which were quoted 10 cents up on last week’s levels.

Predictions of a solid market for the immediate future seems to be the talk on the showfloor as weekly quantities fall to around 40,000 bales, with Fremantle starting a series of one day sales this week. As one buyer said this morning, lack of supply will keep pressure on buyers not currency movements. One can only hope this will be the case for sometime. The national offering is 40,000 next week with our catalogue numbering 700 bales with an unchanged to dearer market anticipated.

Agrisk – CBA Wool Futures Mid-Point Quotes 06/05/2011

20

21

22

AUCTION

1386.0

1320.5

1267.0

Jun-11

1333

1294

1228

Aug-11

1303

1264

1198

Oct-11

1241

1202

1136

Dec-11

1225

1186

1120

Feb-12

1167

1128

1062

Apr-12

1144

1105

1039

Jun-12

1092

1053

987

Aug-12

1090

1051

985

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

6493

2

Techwool Trading

4562

3

Fox & Lillie

4103

4

AS Gedge

1980

5

Lempriere (Aust)

1690

6

PJ Morris

1337

7

West Coast Wools

1249

8

Chargeurs Wool

1160

9

Modiano

923

 

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

                Eastern 1323 cents (é17) compared with 05/05/11                            1.0618 ê 0.0118 compared with 05/05/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1384 cents (é15) compared with 05/05/11

6 May 2011

Friday, May 13, 2011

WEEKLY MARKET REPORT

Week Ending 6th May  2011

 

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
06/05/11

Last Week
22/04/11

Change

Last Year
16/04/10

Yearly
Change

17

 2399

 2418

 -19

1247 

 +1152

18

 2026

 2038

- 12

 1140

 +886

19

 1629

 1617

+12 

 1069

 +560

20

 1358

 1370

 -12

 938

 +420

21

 1286

 1284

 +2

 918

 +368

22

 1246

 1255

 -9

 904

 +379

23

 1191

 1220

 -29

 880

 +377

24

 1008

 1053

 -45

 843

 +237

25

 

 

 

 665

 

26

 837

 853

 -16

 580

 +339

28

 636

 659

 -26

 436

 +252

30

 579

 592

 -23

 382

 +241

32

 527

 571

 -39

 349

 +234

MC

 781

 817

 -36

 626

 +203

                                                                                 

THE BEGINNING OF A NEW ERA

Wool sales resumed this week after a short recess and the highlight for us was offering the first catalogue under the Don Macdonald & Co banner. Sydney held a two day sale offering a total of 12,756 bales with our sale being on Wednesday with 597 bales for sale. The market understandably opened cheaper against a dollar which was close to 5 cents higher than the pre-Easter sale and Melbourne on Tuesday saw falls of 30-40 cents for the medium types and up to 50 cents for the finer end. Sydney opened unchanged on Melbourne and firmed as the day progressed which was good for us as we sold late on the day. The dollar eased further as the week went on and Thursday responded positively with some categories posting gains above the previous sale close.

Our sale was well attended by growers and friends with the added interest of a bottle of Penfolds Grange Hermitage being offered to the buyer of the top price for the catalogue. Of the possible two lots which we would have expected to make top price, the first lot sold 140 cents clean above the next lot of similar micron for the day. The second lot, belonging to KN & MM Foran, Gilgandra, sold after intense competition to Scott Sealey of Viterra - 100 cents above the best quote for any 17.0 micron  ranging lot for the week. The premium paid for these two lots amounted to close to $3000. The $520 paid for the Grange turned out to be a good investment.

The sale averaged $1460 a bale across all types with the only lines to struggle being either poorly prepared clips or cast lines showing heavy colour and cott. As the weeks progress and weekly offerings reduce we expect that competition for supply should keep the market on a firm footing.

Next week there will be about 10,500 bales in Sydney with Don Macdonald & Co offering close to 900 bales.

 

Agrisk – CBA Wool Futures Mid-Point Quotes 06/05/2011

20

21

22

AUCTION

1354.5

1282.5

1239.5

Jun-11

1270

1241

1175

Aug-11

1255

1226

1160

Oct-11

1186

1157

1091

Dec-11

1140

1111

1045

Feb-12

1111

1082

1016

Apr-12

1088

1059

993

Jun-12

1075

1046

980

Aug-12

1073

1044

978

 

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

6493

2

Techwool Trading

4562

3

Fox & Lillie

4103

4

AS Gedge

1980

5

PJ Morris

1690

6

Sky Wool

1337

7

Modiano

1249

8

Williams Wool

1160

9

Qld Cotton

923

 

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

                Eastern 1306 cents (-19) compared with 22/04/11                              1.073 0.021 compared with 22/04/11

 

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1369 cents (-19) compared with 22/04/11