Weekly Market Reports


15 July 2011

Friday, July 15, 2011

WEEKLY MARKET REPORT

Week Ending 15th July 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
13/07/11

Last Week
08/07/11

Change

Last Year
14/07/10

Yearly
Change

17

2384n

2400n

-16

1239

+1145

18

1964

1996

-32

1155

+809

19

1668

1666

+2

1045

+623

20

1493

1484

+9

930

+563

21

1439

1423

+16

922

+517

22

1390n

1386n

+4

906

+484

23

1266n

1282n

-16

892

+374

26

851 (M)

875n (M)

-24

615

+236

28

694

680

+14

462

+232

30

616

618

-2

405

+211

32

565n

560n

+5

359

+206

MC

801

797

+4

629

+172

WE’RE NOT DONE YET!

A reasonable finish to wool sales as fears of another tough week had abated by the end of selling on the second day. Talk of a 30 to 40 cent fall rang true from the opening lot on Tuesday, but buyers seemed to warm to the task as a recovery of some sort had been staged when we sold midway through the day. Even though the market was cheaper, the outcome was far better than what was predicted earlier in the day. 20 to 22s only lost 5 to 10 cents, except for 21s which posted a 3 cent gain. Finer types varied with some better 17 to 17.5s pushed higher by Italian orders. However, the lower style and tender lots dragged 16.5s back 60 cents; 17, 18.5 and 19s  slipped an average of 15 cents and the 18 and 23 micron indicators losing 25 to 35 cents. The recovery kept going on Wednesday as 18 and finer were unchanged with all other indicators 5 to 15 cents higher. Even with the EMI recording only a 2 cent rise it was a great way to go into the three week winter recess. As the table above illustrates, all medium micron lots staged a recovery with 17, 18.5 and 23s down 10 to 15 with 18 and 16.5 microns hardest hit. We still had buyers booking up passed in lots on Friday morning - a good sign of genuine enquiry with talk of plenty of wool booked up for August and September shipment. This augers well for a good start to sales which will recommence on Wednesday 10th August providing no economic bad news comes out of the Northern Hemisphere in the next three weeks that may dampen demand.

Skirtings held their ground on the opening day bar the lots carrying heavy cott and colour again not well sought after. The final day’s offering came under renewed buyer pressure with light vm types under 5% 10 to 20 dearer with the straight burrier types closing 10 cents dearer. Cardings had an up and down week as fine locks less than 19.5 micron lost 20 cents only to claw back 10 cents on the final day of sales. Stains and crutchings also added 10 cents to last week’s quotes, this despite buyers having to contend with the largest weekly offering of cardings in Sydney for 9 years (3100 bales-15% of the week’s offering). Crossbreds also had a good week with 28 and 32 micron indicators up by 5 to 15 cents while 26 and 30 microns fell up to 5 cents.

A well earned rest now for buyers and brokers alike as we move into the annual three week winter recess. For us here at Don Macdonald & Co it has been an extremely hectic period since our first sale in early May. In the eleven weeks till this week’s sale we’ve offered over 11,500 bales to the trade with a clearance of 92%. The next six months and indeed beyond hold much hope for a sustained wool market at these levels or, dare we say, even higher?  Supply is still extremely low and demand is good - a situation that won’t change in the for-seeable future. Let’s hope badly needed rain comes before our next report on 12th August.                                                            AgRisk FDIC Indicative Quotes 15/07/11

20

21

22

AUCTION

1495.5

1444.0

1396.5

Aug-11

1480

1441

1375

Oct-11

1390

1351

1285

Dec-11

1350

1311

1245

Feb-12

1330

1291

1225

Apr-12

1285

1246

1180

Jun-12

1238

1199

1133

Aug-12

1228

1189

1123

Oct-12

1195

1156

1090

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

10576

2

QLD Cotton

3992

3

Modiano

3551

4

Williams Wool

3314

5

Fox & Lillie

3277

6

Techwool Trading

2384

7

AS Gedge

2191

8

Lempriere (Aust)

1757

9

PJ Morris Wool

1474

                       

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

                Eastern 1361 cents (é2) compared with 07/07/11                         1.0631 ê 0.0111 compared with 07/07/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1410 cents (é1) compared with 07/07/11

 

8 July 2011

Friday, July 08, 2011

WEEKLY MARKET REPORT

Week Ending 8th July 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
08/07/11

Last Week
01/07/11

Change

Last Year
08/07/10

Yearly
Change

17

2400n

2392n

+8

1267

+1133

18

1996

2062n

-66

1175

+821

19

1666

1709

-43

1061

+605

20

1484

1505

-21

937

+547

21

1423

1438

-15

931

+492

22

1386n

1415n

-29

921

+465

23

1282n

1298n

-16

902

+380

26

875n (M)

900n (M)

-25

617

+258

28

680

711n

-31

469

+211

30

618

648n

-30

415

+203

32

560n

590n

-30

366

+194

MC

797

823

-26

619

+178

SEASON OPENS ON A SOFTER NOTE

The new season started as the last season ended - trending downward. Reasons for the fall varied from too much wool in the opening two weeks of the season to worries about the economic problems in Europe and North America and Chinese mills unwilling to book up wool at these levels. The talk of a 20 to 30 cent fall from the outset rang true from the opening lot on Wednesday as 15 to 30 cent falls were recorded for most indicators. Other indicators such as 17.5, 18 and 19 suffered heavier losses of 35 to 45 cents even though the FNF and “Best Topmaker” style lots were dearer with 17s also in sellers’ favour. Despite this fall early in the day, the market did in fact improve as the day went on. Thursday’s offering met with similar buying patterns for the finer indicators as 17.5 to 18.5 fell 10 to 29 cents, but the better lots posted good gains. Medium types were solid with 21s adding 14 cents to their overnight values. One highlight came out of Melbourne on Wednesday with an 11.4 micron bale of shedded and coated wool from 2 year old wethers making 200,000 cents (highest price in 3 years). This bale, measuring 66mm & 41nkt was bought by G Schneider Australia for their Italian client, Lora Piana to be woven into cloth at their mill in Milan.

Unlike previous weeks, skirtings failed to maintain their good levels and followed the pattern of falling prices in the fleece room. Most descriptions opened up around 30 cents cheaper with most emphasis on 5%vm and lower. The heavier vm lots also came under pressure to fall by 50 cents. On our day’s sale (Thursday), most types remained unchanged except some short burrier types quoted cheaper by 10 to 20 cents and the usual discounts for lots with colour and cott. Cardings started the new season with a 20 to 30 cent fall for all types and vm levels on the opening day and remained at these rates on Thursday. An increased volume of Crossbreds saw all descriptions ease on both days bar the finer indicators (25 and 26s) which gained 10 to 15 cents while 28 to 32 micron lots dipped by 30 cents.

Even with the market falling, value/bale is still very good. This week’s catalogue was our biggest to date with 1962 bales offered with 1834 bales sold averaging $1460/bale. Our biggest buyer was Williams Wool buying 366 bales costing $501,244 at an average of $1370/bale with a total of 27 buyers operating on our catalogue. Next week will see Don Macdonald & Co offer 1670 bales second up on Tuesday in the final sale before the three week winter recess. A finish to the market at these levels may be the best the outcome we can hope for as a national catalogue of 59,000 bales is on offer, the largest weekly offering since mid January.     

AgRisk FDIC Indicative Quotes 08/07/11

20

21

22

AUCTION

1485.5

1425.0

1385.5

Aug-11

1456

1417

1351

Oct-11

1380

1341

1275

Dec-11

1335

1296

1230

Feb-12

1315

1276

1210

Apr-12

1270

1231

1165

Jun-12

1234

1195

1129

Aug-12

1224

1185

1119

Oct-12

1191

1152

1086

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

5385

2

Fox & Lillie

2989

3

Williams Wool

2864

4

QLD Cotton

2531

5

Techwool Trading

1911

6

AS Gedge

1770

7

Lempriere (Aust)

1745

8

G Schneider (Aust)

1611

9

Victoria Wool Processors

1427

                       

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

                Eastern 1359 cents (ê40) compared with 30/06/11                                                1.0742 ê 0.0005 compared with 30/06/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1409 cents (ê46) compared with 30/06/11

1 July 2011

Friday, July 01, 2011

WEEKLY MARKET REPORT

Week Ending 1st July 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
01/07/11

Last Week
24/06/11

Change

Last Year
30/06/10

Yearly
Change

17

2392n

2373n

+19

1261

+1131

18

2062n

2066n

-4

1169

+893

19

1709

1751

-42

1066

+643

20

1505

1588

-83

950

+555

21

1438

1522

-84

936

+502

22

1415n

1461

-46

924

+491

23

1298n

1324n

-26

898

+400

26

900n (M)

899n (M)

+1

628

+272

28

711n

706n

+5

476

+235

30

648n

644n

+4

416

+232

32

590n

590n

0

369

+221

MC

823

831

-8

630

+193

THE CORRECTION WE HAD TO HAVE?

A reality check this week as the talk of a correction over the past few weeks came to fruition and put everyone out of their misery as the EMI gave up 27 cents to finish the season at 1409 cents. This week’s falls snapped a fifteen day rising streak with both days suffering double digit losses. The national offering of 31,300 bales was the second smallest three-centre catalogue in 12 months. The middle microns took the brunt of the falls as 19.5 to 21s slumped 70 to 85 cents. Finer categories (18.5 and 19) and 22 and 23s were back 25 to 45 cents. Superfine indicators bucked the falling trend and posted modest gains of 5 to 20 cents on the back of a good selection and renewed Italian interest. As is nearly always the case off types with heavy cott, colour and high vm were discounted greatly with the odd lot almost neglected. The reasons for this week’s falls vary from the anticipated correction discussed earlier to the rising AUD$ to larger than expected quantities over the next two weeks before the annual 3 week winter recess. It seems now that the buyer who was holding stock in China may have got his wish of a cheaper market as they had not booked up a bale for over four weeks and virtually been on the sidelines for the past fortnight. Hopefully this week’s fall allows mills to purchase some stock and stabilise the market. A rise in currency will nearly always be used as a reason for a falling market.

The skirting market was not affected nearly as much as the downward trend of the fleece room. Types containing vm levels under 5% came under renewed pressure and lifted in value by as much as 30 cents with the emphasis being on the “better” style pieces and bellies. Again, high vm lots with colour, cott and jowl were discounted heavily. After a solid opening session, cardings lost ground on the final day as fine locks and crutchings surrendered 15 to 20 cents with stains unchanged. Crossbred types bucked the falling trend adding up to 5 cents to last week’s values.

A terrific year for the wool market! A rise of just over 500 cents, (898 to1409) and most of that since November 2010. This equates to a 57% increase, outdoing the 45% rise in 1988. In US cents terms, the rise is a staggering 97.9% - 765 to 1514 cents. Just two weeks ago the rise hit 99.5 %. Incredible numbers considering the AUD$ recorded a rise of 22% (85 to 107) in 12 months. Good news, construction has finally started on our new wool store, with photos of a very relieved manager and wool store manager on our web site (www.macwool.com.au and go to ‘Weekly Market Report’). Predictions for next week look tough, but a stable market would be a good outcome.

                     

AgRisk FDIC Indicative Quotes 01/07/11

20

21

22

AUCTION

1520.0

1447.0

1419.5

Aug-11

1515

1476

1410

Oct-11

1408

1369

1303

Dec-11

1393

1354

1288

Feb-12

1305

1266

1200

Apr-12

1260

1221

1155

Jun-12

1256

1217

1151

Aug-12

1246

1207

1141

Oct-12

1213

1174

1108

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

3605

2

Fox & Lillie

2576

3

Techwool Trading

2131

4

Modiano

1731

5

Kathaytex

1377

6

Lempriere (Aust)

1279

7

AS Gedge

1270

8

Victoria Wool Processors

1261

9

Chinatex (Aust)

943

                       

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

                Eastern 1409 cents (ê27) compared with 24/06/11                               1.0747 é 0.0199 compared with 24/06/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1455 cents (ê36) compared with 24/06/11

24 June 2011

Friday, June 24, 2011

WEEKLY MARKET REPORT

Week Ending 24th June 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
24/06/11

Last Week
17/06/11

Change

Last Year
24/06/10

Yearly
Change

17

2366n (M)

2352n (M)

+14

1259

+1107

18

2066n

2073n

-7

1173

+893

19

1751

1769

-18

1073

+678

20

1588

1575

+13

956

+632

21

1522

1514

+8

935

+587

22

1461

1458

+3

922

+539

23

1324n

1318n

+6

898

+426

26

899n (M)

896 (M)

+3

626

+273

28

706n

692n (M)

+14

475

+231

30

644n

628 (M)

+16

419

+225

32

590n

581 (M)

+9

369

+221

MC

831

812

+19

644

+187

A TOUCH HIGHER AGAIN

The market rose fractionally again to defy most pundits’ predictions of a softer trend. A 6 cent rise in Sydney and Melbourne equated to a 5 cent rise for the EMI to 1,436 cents. The market split in two directions as 19.5 and finer fell up to 18 cents while the broader types from 20 microns out continued their great run to add 5 to 15 cents. The rise of 6 cents in Sydney did surprise us as only very few FNF lots seemed to hold their ground on the opening day, with burrier fleece lots looking cheaper. Although AWEX could not find any cheaper lots in their quotes and left all indicators unchanged, bar 22s - up 1 cent and 18s back 9! The second day saw most movements as falls of 7 to 18 cents for 19 and 19.5 were negated by good increases for middle micron lots. The market in Melbourne was even more erratic as an excellent selection of sub 17 micron types saw an 88 cent rise for 16.5s with 18.5 dropping 29 cents. Their indicators moved in two directions as finer lots under 18 lifted; 18.5 to 19.5 fell 15 to 25 cents; with 20s and broader gaining up to 20 cents.

Skirtings also tracked the fleece room’s direction as the better style and good colour lots under 4% vm were keenly sought after and increased in value to the tune of 20 cents. The burrier pieces and bellies carrying over 8% vm tended to sell in buyers’ favour with the odd lot dearer that contained little cott, jowl and colour. Once again, the small selection that did contain heavy cott and jowl were discounted again with only very little interest in these lots. Cardings posted solid gains for the third week in a row. Locks and stains recorded 20 cent rises while crutchings were quoted up by 10 cents. The MCI has now added 89 cents in the past four weeks after hitting a low of 742 cents in late May - a great recovery! Crossbreds also added to their values with an average rise of 13 cents. The sudden drop off in supply over the past few weeks has certainly helped their cause.

For the second week in a row, Don Macdonald & Co. has dominated offerings in Sydney. After having the second biggest catalogue last week behind Landmark, this week’s 1462 bale catalogue was the largest, a great achievement since our first sale in early May. The market, despite talk of a cheaper trend and Chinese bids at 20 to 30 cents below the market, continues to break records. This week’s 22,000 bale national offering is the smallest two centre sale in 2 years with the last three weeks averaging just 23,600 across the country. Fremantle sells again next week with the last sale of the financial year to be held followed by two sales in the first two weeks of July before the three week recess with national offerings to average 33,000 bales. With futures trading higher (coupled with small quantities) it’s hard to see the market not remaining at these levels or, dare we say, even better.                   

AgRisk FDIC Indicative Quotes 17/06/11,

20

21

22

AUCTION

1575.0

1521.5

1457.0

Aug-11

1473

1434

1368

Oct-11

1398

1359

1293

Dec-11

1374

1335

1269

Feb-12

1350

1311

1245

Apr-12

1318

1279

1213

Jun-12

1280

1241

1175

Aug-12

1270

1231

1165

Oct-12

1237

1198

1132

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

3448

2

Fox & Lillie

2051

3

Lempriere (Aust)

1710

4

AS Gedge

1218

5

Viterra Wool

1183

6

Queensland Cotton

1176

7

Chinatex (Aust)

906

8

Victoria Wool Processors

616

9

Williams Wool

472

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

         Eastern 1436 cents (é3) compared with 17/06/11                              1.0548 ê 0.0026 compared with 10/06/11

        Northern Market Indicators (AUD cents/kg clean)

         Northern 1491 cents (é3) compared with 17/06/11

17 June 2011

Friday, June 17, 2011

WEEKLY MARKET REPORT

Week Ending 17th June 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
17/06/11

Last Week
10/06/11

Change

Last Year
17/06/10

Yearly
Change

18

2073n

2078n

-5

1172

+901

19

1769

1767

+2

1083

+686

20

1575

1568

+7

963

+612

21

1514

1498

+16

946

+568

22

1458

1446n

+12

924

+534

23

1318n

1314n

+4

897

+421

26

896 (M)

875n (M)

+21

630

+266

28

692n (M)

673 (M)

+19

480

+478

30

628 (M)

611 (M)

+17

430

+198

32

581 (M)

560 (M)

+21

375

+206

MC

812

770

+42

634

+178

A GOOD MARKET, BUT HAS IT PEAKED?

A modest lift of 11 cents to see the AWEX   EMI finish the week at 1,431 cents was another great result for the wool market. Even with Fremantle selling this week , their catalogue of only 4,600 bales (with a national total of just 26,000 bales) this was the smallest  three centre  sale ever recorded in AWEX’s history stretching back to July, 1995. With the 2 daily increases this week, that bought the consecutive daily rises to 13, also an AWEX record. It was a market that was split in two as 19 to 23 micron put on 5 to 20 cents on the  opening day only to keep falling early on Thursday then recover some lost ground late on the final day. Just two categories managed double digit rises for the week - 21s up 16 and 22s were 12 cents dearer. The other middle micron indicators of 19 to 20 and 23 added up to 7 cents. As has been the case for a few weeks now, finer lots struggled to find any direction with the better style lots dearer and poorer style lots pushing these indicators down 5 to 10 cents. With this week’s subtle rises some MPGs are at record or near record levels. The 22 micron indicator at an average of 1,456 has never been higher, overtaking the 1988 record. 23s are also closing in on a record now at 1,318 cents - just 20 cents from their spike of 2002.  Finer microns, even at these good levels, are still a long way from their peaks of 1988.

Skirtings also had a mixed week with the better style lots (containing little vm) up to 8% lifting 10 to 20 cents on the opening day with lots containing colour and cott and higher degrees of burr irregular on the final day. Cardings continued their recovery as the MCI broke through the 800 cent barrier (812 cents, up 42), again as all descriptions bar heavy vm (15%>) added around 40 cents to last week’s values. Crossbreds improved along with most sectors of the market as all types and microns were around 20 cents to the good by the end of the week. This was a great result for one of our crossbred growers who had accumulated over 200 bales over the past few years and sold every bale with a100% clearance of all our crossbred wool on offer - an achievement that is rare in any section of the catalogue.

Even with the market rising, buyers were very cautious about any further improvements in the short term. Viterra, who have made a habit of finishing in the top three buyers week in week out, did not buy a bale of fleece on Thursday, citing plenty of stock in the pipeline as the reason for not buying. This stock reportedly, offered out to processors at 20 to 30 cents under current rates was not booked up, thus hinting at a correction over the next few weeks. Even with national totals under 30,000 bales for the next three weeks this lack of wool may not be enough to stop a correction.

AgRisk FDIC Indicative Quotes 17/06/11

20

21

22

AUCTION

1575.0

1521.5

1457.0

Aug-11

1473

1434

1368

Oct-11

1398

1359

1293

Dec-11

1374

1335

1269

Feb-12

1350

1311

1245

Apr-12

1318

1279

1213

Jun-12

1280

1241

1175

Aug-12

1270

1231

1165

Oct-12

1237

1198

1132

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

2495

2

Lempriere (Aust)

2406

3

Fox & Lillie

2262

4

Viterra Wool

1424

5

Queensland Cotton

1377

6

Chinatex (Aust)

1244

7

Modiano (Aust)

940

8

West Coast Wools

756

9

AS Gedge

718

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

                Eastern 1431 cents (é11) compared with 10/06/11                                                1.0574 ê 0.0060 compared with 10/06/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1485 cents (é10) compared with 10/06/11

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