Weekly Market Reports


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