Weekly Market Reports


9 March 2012

Friday, March 09, 2012

WEEKLY MARKET REPORT

Week Ending 9th March, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
09/03/12

Last Week
02/03/12

Change

Last Year
10/03/11

Yearly
Change

17

1695n

1717

-22

2518

-823

18

1545

1565

-20

2176

-631

19

1467

1447n

+20

1687

-220

20

1386

1364n

+22

1314

+72

21

1364n

1334n

+30

1234

+130

22

1318n

1313 (M)

+5

1199

+119

23

1277 (M)

1285 (M)

-8

1154

+123

28

625n

627n

-2

717

-92

30

565n

569n

-4

665

-100

32

503n

502 (M)

+1

604

-99

MC

731

726n

+5

810

-79

                                                                                                                                                                                                                                               

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)

1

Viterra Wool

5419

2

Techwool Trading

3630

3

Chinatex (Aust.)

3358

4

Fox & Lillie

3336

5

Williams Wool

2709

6

Dalgety Wool

2684

7

PJ Morris

2116

8

QLD Cotton

1813

9

West Coast Wools

1067

                       

 

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

2 March 2012

Friday, March 02, 2012

WEEKLY MARKET REPORT

Week Ending 2nd March, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
02/03/12

Last Week
24/02/12

Change

Last Year
03/03/11

Yearly
Change

17

1717

1703n

+14

2525

-808

18

1565

1555

+10

2189

-624

19

1447n

1444

+3

1646

-199

20

1364n

1368

-4

1259

+105

21

1334n

1332

+2

1188

+146

22

1313 (M)

1306

+25

NA

-

23

1285 (M)

1286n

+14

NA

-

28

627n

640

-13

653

-26

30

569n

581

-12

579

-10

32

502 (M)

508n

+14

521

-19

MC

726n

726

0

751

-25

                                                                                                                                                                               

NEWCASTLE SURVIVES, BUT ONLY JUST

The fears we held for Newcastle appeared to be on track as the market opened softer on Tuesday. Even with the fall of the EMI of 7 cents, brokers selling on the opening day were prepared for the fall as they looked to adjust their valuations correctly as only 6% was passed in.  Movements were minimal as fine microns under 18.5 suffered 10 cent losses while 19s and broader fell 10 to 20 cents with a lack of quantity leading to limited orders the reason for this fall. The superior selection on Wednesday brought buyers out of the wood- work as the increased competition saw an increase of 20 to 35 cents for 17.5 and finer and 10 to 15 cent rises for indicators out to 20 microns. Oddly enough the pass in rate was almost 14%! Melbourne and Fremantle enjoyed good rises with most indicators adding 20 to 30 cents. Newcastle’s final day selling for the season saw a little “style adjustment’ with 17 and 17.5s back 13 cents and 18 and broader up to 10 cents better. In what might be a good lead into next week, Melbourne saw gains of 10 to 20 cents across the board. By week’s end rises were small - up to 5 cents for 19 and coarser and 10 to 15 for 18.5 and finer. Despite these modest rises, the AWEX Northern Indicator fell by 1 cent, an odd movement with all indicators in the positive. Best top-making style and better fleece lots may not be included in the make-up of indicator directions!

Skirtings had an up and down week literally as a solid opening led to a cheaper close as the selection waned towards the end of the sale. Tuesday saw a solid start and, as with the fleece room, Wednesday’s superior offering led to keener competition, pushing low VM lots, under 4%, 10 to 20 cents higher. The less than attractive last day’s selection saw the market taper by 10 to 30 cents. Cardings followed the same pattern as the two other sectors of the merino offering. Locks opened 10 cents or better as crutchings and stains remained solid until the final day as heavier carbonising types of locks lost 10 to 15 cents. The small amount of Crossbreds fell 10 to 15 cents in the 28 to 30 micron range with all other types unchanged under some-what subdued bidding.

This week’s sale brings to an end Newcastle’s selling as a stand alone centre for this season. Over the four sales conducted there since mid September, none have had the Northern Region Indicator lift in value. The last two sales (including this week) saw 1 cent falls with the September and October sales losing 19 and 10 cents respectively. These bad results add fuel to the fire for those in the industry gunning for Newcastle to cease as a selling centre. No such luck yet as next season Newcastle is scheduled to have 5 sales, 4 prior to Christmas and the February sale in the corresponding week next year.  As the above table illustrates, sub 19 micron are lower than this time a year ago, with 18s and finer a massive margin behind. This is reflected in prices as the top price in Newcastle was 2,690 cents for a 14.0 micron weaner lot. Next week will see a catalogue of  16,000 bales in Sydney with Macwool offering 1060 bales first up on Wednesday.         

          

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

6205

2

Techwool Trading

4572

3

Williams Wool

3429

4

Fox & Lillie

3118

5

Chinatex (Aust.)

2512

6

PJ Morris

2464

7

QLD Cotton

2027

8

Dalgety Wool

1958

9

New England Wool

703

                       

 

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

                Eastern 1213 cents é 6cents compared with 23/02/12                         1.0743 é 0.0101 compared with 23/02/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1246 cents ê 1cent compared with 23/02/12

24 February 2012

Friday, February 24, 2012

WEEKLY MARKET REPORT

Week Ending 24th February, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
24/02/12

Last Week
17/02/12

Change

Last Year
17/02/11

Yearly
Change

17

1703n

1780

-77

2417

-714

18

1555

1603

-48

2098

-543

19

1444

1490

-46

1628

-184

20

1368

1398

-30

1247

+121

21

1332

1379

-47

1188

+144

22

1306

1351

-45

1134

+172

23

1286n

1341n

-55

1081

+205

28

640

637

+3

617

+23

30

581

583

-2

543

+38

32

508n

516n

-8

479

+29

MC

726

714

+12

750

+24

                                                                                                                                                                               

FINE WOOL UNDER PRESSURE – LOOK OUT NEWCASTLE!

The shaky end to last week’s sale was just a precursor to this sale as prices tumbled at a rapid rate from ‘go to whoa’. It was a case of dèja vu when compared to the opening two weeks of the year, when a good opening sale was followed by losses of equal amounts. This time, after a good rise two weeks ago, buyers were uncertain as to where to send the market last week.  No such uncertainty this week as the negative tone was loud and clear from the opening bell. Heavy falls early in the week steadied as the sale progressed with the EMI halving its losses as the week unfolded. The EMI gave up 37 cents to sit at 1222. In US c/kg the fall equated to a 44 cent reduction to 1284 cents. This week’s fall was the largest in five months and the national pass in rate of 22% was the biggest in nearly two years. Even New Zealand Merino passed in more than Fremantle, 41% compared to 30%!  Losses were across the board in the fleece sector as finer microns (16.5) dropped almost 100 cents with 17 and 17.5 back 60 to 75 cents. All other indicators lost 45 to 55 cents bar 20s which slipped 30 cents. As is the case when a fall occurs, discounts were back in vogue for tender, colour and cotty lots. The table above illustrates the good position of medium wool and the big fall in fine wool prices compared to last year.

Skirtings fared far better than their fleece counter-parts. On the whole, prices remained steady with buyers picking the eyes out of lots with colour and cott with some being discounted and others making well above estimation. Cardings also defied the negative tone of Room 1 as the MCI moved ahead by 12 cents to 726 cents. All types and descriptions advanced by 10 to 30 cents.  Even with cardings gaining ground buyers are reluctant to purchase any lots with Noogoora Burr. Unlike Bathurst Burr, Noogs do not break up in the scouring process and discounting is heavy when compared to similar types without Noogs. Most of these lots, regardless of micron or VM, range in price from 100 to 200 cents, a reduction of 100 to 200 cents to other lots. It is important to try to keep Noogoora infestation separate from other VM types if possible, especially in fleece lots, separation in skirtings and, of course, cardings is more difficult, but with such large discounts the effort to segregate Noogs could be well worth it. Crossbreds took a breather from their bullish run of the last fortnight. Fine lots, from 28 to 30 micron, moved just a few cents either way with 32 microns 8 cents easier.

Next week’s focus shifts to Newcastle as they host their final sale of the season with 12,500 bales on offer. Up until this week the prospect of reasonable prices looked good as increases in the fine and super-fine sector had been building over the past few sales. New England wool growers will certainly be nervous about the prospect of a good outcome next week. The selection is best top-makers and better predominately finer than 18.5 micron but, as one buyer reported, “business is dead”. Let’s hope business comes to “life” next week, otherwise pass-in rates could rival this week’s heights.

 

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

5507

2

Williams Wool

3798

3

Fox & Lillie

2496

4

Techwool Trading

2457

5

Modiano (Aust)

2148

6

QLD Cotton

1754

7

Kathaytex

1650

8

Chinatex (Aust.)

1404

9

PJ Morris

1283

                       

 

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

                Eastern 1207 cents ê 37cents compared with 16/02/12                       1.0642 ê 0.0033 compared with 16/02/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1247 cents ê 33cents compared with16/02/12

17 February 2012

Friday, February 17, 2012

WEEKLY MARKET REPORT

Week Ending 17th February, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
17/02/12

Last Week
10/02/12

Change

Last Year
17/02/11

Yearly
Change

18

1603

1590

+13

2096

-493

19

1490

1487

+3

1611

-121

20

1398

1400

-2

1216

+182

21

1379

1383

-4

1155

+224

22

1351

1349

+2

1113

+238

23

1341n

1343n

-2

1055

+286

24

1165n (M)

1165n (M)

0

NA

-

28

637

615

+22

580

+57

30

583

547

+36

517

+66

32

516n

493n

+23

458

+58

MC

714

707

+7

734

-20

                                                                                                                                                                                                                                               

SOLID START BUT A FEW WOBBLES AT THE END!

The market took a breather this week as AWEX could only find a 1 cent increase in the up and down movements of the market. Unlike the opening two weeks of the year, when the market rose and fell by an identical margin, the market stayed solid despite waning towards the end of the week. Love was in the air on Tuesday (Valentines Day) as buyers continued their good work from last week pushing the Northern Indicator up 13 cents to 1283. Finer types than 19 micron added up to 10 cents while medium indicators were quoted 10 to 15 cents up. The determining factors in how indicator movements are set is still somewhat of a mystery as some of our fleece lots made well above the indicators. A 17.5 lot 27 cents up, a 21.2 lot 29 cents better than the 21 indicator, an 18.5 - 17 cents higher and two lots around 20 micron averaging 30 cents better than the indicator. Maybe AWEX don’t take into consideration Macwool prices in their quotes! The next two days saw the market soften to leave most fleece indicators adjusted just 5 cents either way, bar 18 microns which added 13 cents to push them to 1600 cents for the first time in many weeks - good news for super-fine growers as the market builds towards the Newcastle sale in two weeks. (The Launceston sale held on Tuesday was solid without being spectacular, with a top price of 2130 cents for a 15.1 micron lot). A record was set on Tuesday for 23 microns at 1347 cents, the highest level for this micron since 1979 when the AWC began market reporting and micron indicator pricing.

Skirtings made good advances on the opening day with all descriptions posting 10 to 20 cent gains with most emphasis on better length lots between 3 and 8% VM. Some Tasmanian specialty lots were keenly sought after and looked 80 to 100 cents dearer. Finer and lower VM types (18 micron and 4%) commanded solid premiums on the final day of sales while broader, burrier lots finished just ahead of the previous day’s quotes. Cardings made good gains initially as all types added up to 5 cents with locks (20 micron and  broader) 20 to 30 higher. Most types remained unchanged on the final day with locks giving up 5 cents from their previous day’s quotes. Crossbreds had a great sale increasing in value on each day - 26 and 30 micron indicators added 35 to 45 cents while 28 and 32s gained 20 cents.     

With the resurgence of the market, so to a revival in field days. After a long absence the “Marra Fleece ’N’ Field Day” is making a come-back. This day will be held on Saturday, 3rd March at the Marra Hall, commencing at 10.30am. Over 30 exhibitors will be on display with fleece and sheep judging and activities for the kids (jumping castle!) and evening entertainment. Later in the year, mid October, Carinda will stage its wool day, after a 10 year hiatus. Well done to both communities, as these events take a lot of time and effort let alone money to stage.    

Agrisk FDIC Indicative Quotes 03/02/2012

20

21

22

AWEX

1334.0

1296.0

1284.5

Feb-12

1273

1236

1210

Apr-12

1266

1229

1203

Jun-12

1242

1205

1179

Aug-12

1210

1173

1147

Oct-12

1157

1120

1079

Dec-12

1137

1100

1059

Feb-13

1102

1065

1024

Apr-13

1081

1044

1003

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

5995

2

Techwool Trading

5471

3

Modiano (Aust)

3244

4

Fox & Lillie

2841

5

Dalgety Wool Exp.

2535

6

Williams Wool

2321

7

PJ Morris

1927

8

Lempriere

1573

9

Kathaytex

1068

                       

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

                Eastern 1244 cents é 1cents compared with 9/02/12                                        1.0675 ê+ 0.0105 compared with 9/02/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1280 cents é 10 cents compared with 9/02/12

10 February 2012

Friday, February 10, 2012

WEEKLY MARKET REPORT

Week Ending 10th February, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
10/02/12

Last Week
03/02/12

Change

Last Year
10/02/11

Yearly
Change

18

1590

1499

+91

2072

-482

19

1487

1418

+69

1589

-102

20

1400

1346

+54

1192

+208

21

1383

1302

+81

1137

+246

22

1349

1290n

+59

1087

+262

23

1341 (M)

1277 (M)

+64

1038

+303

24

1165n (M)

1117 (M)

+48

NA

-

28

615

596n

+19

558

+57

30

547

524n

+23

500

+47

32

493n

482n

+11

445

+48

MC

707

697

+10

721

-14

                                                                                                                                                                                                                                               

MARKET DEFIES CURRENCY

The more holidays this author has the better the wool market performs! In late October we saw a 100 cent rise for most fleece types while on hiatus in New Zealand dissecting Australia’s dismal World Cup performance. This time, the market took a fifty cent rise, hot on the heels of a week studying monsoonal rain events in Fiji! After two sales of stability, the market finally made a move. By the end of the week 50 cents had been added to the EMI to see it at 1243 cents. A solid start in Melbourne on Tuesday saw momentum build to record double digit rises across the two remaining days in all three centres. The pass-in rate was below 10% nationally, a rarity given Fremantle’s tough stance selling wool. A great result when the A$ keeps rising, peaking at 108 US cents on Wednesday night, almost 10 cents higher than the Sale 24 level before Christmas. This week’s close has the market at a 5 month high, just the fourth occasion since the end of September the EMI has cracked the 1200 cent barrier.

This week’s rise came from almost nothing as popular consensus was an unchanged or even slightly cheaper market as the exchange rate worsened and too many external factors like interest rates, leadership uncertainty in Australian politics, Middle East unrest and Greece’s indecision to accept the bail-out package from the EU had most buyers and traders in a “holding pattern” as to when to step in and buy and what exactly would trigger this next purchasing phase. In our favour is a slowly decreasing wool clip, a short term drop in receivals to some broker’s stores due to the floods in QLD and NSW and the fundamental supply and demand situation. Finer types led the charge as 19 micron and lower added 70 to 100 cents. This continues their good gains over the past two weeks for sub 17 micron as we build to increased offerings of fine wool in the next three weeks with reportedly good inquiry helping to lift these types back to some sort of reasonable level (16.5 now at 2000 cents clean). Medium to broad fleece types gained 45 to 65 cents with the stand-outs being 21 and 25s adding 80 to 90 cents. We cleared every fleece lot with, as usual, discounts for colour, cott and VM shrinking dramatically with 23% making over 1000 cents and just 10 lots under 800 cents. A great result!

Skirtings opened the sale with a bang. 17 micron and finer lifting by 30 to 40 cents and 18 and broader around 5% VM progressing 10 to 20 cents. The final day was subdued when compared to the previous day but buyers still managed to lift all descriptions another 10 cents. Cardings made consistent gains over the two selling days with the MCI adding 5 cents on both days to see the indicator at 707cents. Crossbreds weren’t to be outdone either as 28 to 30 micron posted 20 to 30 cent gains with 32s 10 cents dearer. Next week seems to be a bit of an unknown as yet, but anything may happen!      

Agrisk FDIC Indicative Quotes 03/02/2012

20

21

22

AWEX

1334.0

1296.0

1284.5

Feb-12

1273

1236

1210

Apr-12

1266

1229

1203

Jun-12

1242

1205

1179

Aug-12

1210

1173

1147

Oct-12

1157

1120

1079

Dec-12

1137

1100

1059

Feb-13

1102

1065

1024

Apr-13

1081

1044

1003

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

5899

2

Techwool Trading

3731

3

Dalgety Wool Exp.

2250

4

QLD Cotton

2002

5

PJ Morris

1814

6

Modiano (Aust)

1733

7

Williams Wool

1662

8

Fox & Lillie

1539

9

Chinatex

1397

                       

 

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

                Eastern 1243 cents é 50cents compared with 2/02/12                                 1.0780 é 0.0044 compared with 2/02/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1270 cents é 50 cents compared with 2/02/12

3 February 2012

Friday, February 03, 2012

WEEKLY MARKET REPORT

Week Ending 3rd February, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
03/02/12

Last Week
27/01/12

Change

Last Year
27/01/11

Yearly
Change

18

1499

1513

-14

2077

-578

19

1418

1431

-13

1638

-220

20

1346

1352

-6

1203

+143

21

1302

1308

-6

1162

+140

22

1290n

1288n

+2

1110

+180

23

1277 (M)

1271 (M)

+6

NA

-

24

1117 (M)

1135 (M)

-18

NA

-

28

596n

596

0

567

+29

30

524n

528

-4

503

+21

32

482n

481n

+1

448

+34

MC

697

697

0

700

-3

                                                                                                                                                                                                                                               

DOLLAR SINKS THE SURGE

It was another reasonable week at wool sales despite the strong surge from the dollar reaching a five month high of US1.07 yesterday. For the second week in a row the superfine types met with strong demand with the 16.5 micron indicator rising just on 100 cents for the fortnight.

All other categories either “treaded water” (pardon the pun) or slipped slightly against the weight of the appreciating currency. The EMI in US currency is nearly 100 cents higher at 1281 which was up 25 cents for the week. As China is purchasing 70% of our wool and their currency is hinged to the US dollar it has a significant impact on buying power. The whole issue of China pegging the Yuan to the US dollar is an issue of consternation to most western economies who feel China is unfairly piggy backing on the weak US currency to keep their imports cheap. All industrialised countries are struggling to compete with cheap imports from China and many argue that, if floated, it would appreciate by up to 40%.

So this week saw a small offering of just over 37,000 bales with, apart from superfine types, most merino types were solid on the first day and drifted up to 10 cents clean yesterday. Merino skirtings ended the week unchanged as did crossbred types and cardings. Our sources expect Chinese activity to keep the market at somewhere around these levels as offerings for the next month are expected to be around 45,000 a week. Brokers in NSW and Qld will be well down after next week as the prolonged wet spell has stalled shearing and wool deliveries into store in many areas.

Supply will continue to be the main factor keeping the market at these levels as wool production figures for year to date to end of January show wool volume by weight 1.1% lower than last year. Actual volumes of clean fleece weight could be slightly higher as many clips we see are yielding higher than last year by a couple of percent, easing growers concerns over fleece weights being down.

Whilst the fine wool indicators are below last year’s levels the end result over the total offering is still very healthy.

The average for all fleece wool sold in Sydney this week was 983 cents greasy (19.2u ave), whilst crossbred fleece averaged 388 cents a kilo at 27.4u average.

Next week Don Macdonald & Co will offer over 1300 bales first up on Thursday with expectations being similar to this week’s market or maybe a touch lower depending on the dollar. A national offering of 44,980 bales in expected in three centres.

 

Agrisk FDIC Indicative Quotes 03/02/2012

20

21

22

AWEX

1334.0

1296.0

1284.5

Feb-12

1273

1236

1210

Apr-12

1266

1229

1203

Jun-12

1242

1205

1179

Aug-12

1210

1173

1147

Oct-12

1157

1120

1079

Dec-12

1137

1100

1059

Feb-13

1102

1065

1024

Apr-13

1081

1044

1003

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

4722

2

Fox & Lillie

3047

3

Techwool Trading

2713

4

Dalgety Wool Exp.

1875

5

QLD Cotton

1764

6

Modiano (Aust)

1592

7

Williams Wool

1569

8

G Schneider (Aust)

1474

9

Lempriere Aust.

1290

                       

 

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

                Eastern 1193 cents ê 4cents compared with 27/01/12                                1.0736 é 0.0216 compared with 27/01/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1220 cents ê 3 cents compared with 27/01/12

27 January 2012

Friday, January 27, 2012

WEEKLY MARKET REPORT

Week Ending 27th January, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
27/01/12

Last Sale
20/01/12

Change

Last Year
27/01/11

Yearly
Change

18

1513

1508

+5

1958

-445

19

1431

1430

+1

1560

-129

20

1352

1349

+3

1147

+205

21

1308

1305

+3

1111

+197

22

1288n

1276n

+12

1060

+228

23

1271 (M)

1227 (M)

+44

1016

+255

26

761n

755n

+6

748

+13

28

596

597

-1

574

+22

30

528

531

-3

507

+21

32

481n

481n

0

449

+32

MC

697

696

+1

689

+8

ROCK SOLID DESPITE GREECE’S BEST EFFORTS

Not since 450BC has Greece had such an impact on the world’s economy. The tiny pocket handkerchief European country ranked the 37th largest economy in the world has again made headlines as the possible cause of world wide recession or worse. Despite this, and against an appreciating dollar, the wool market shrugged off a previous lackluster week to post gains in nearly all categories.

At the top of the list was the significant gains posted in the super fine types not quoted above. 16 microns, for example, were over 50 cents dearer and it was pleasing to see in our catalogue on Wednesday the sub 18 micron lots rally by 50 to 100 cents. A glance at the yearly change column above will, for many growers, still look pleasing with around 200 cents or better compared to last year. It is a little harder to swallow for fine wool growers who, 12 months ago, had a brief moment in the sun, only to see this eroded by a combination of the “Greece” factor and continued strong supply. One major Italian processor commented just before Christmas that the growth in production of the sub 16 micron types has far outstripped the growth in demand, and it would take some time for the imbalance to correct itself.

The remainder of the catalogue saw widespread competition which was evidenced by a low pass-in rate. Approximately 42% of our fleece offering made above 1000 cents greasy which, to most growers, is a good result. The catalogue contained  a few lots which were passed in just before the recess and these all sold at higher levels - some over 100 cents above. Lots that contained fault; either high VM, over length or degree of cot were lines that sold well above previous passed-in prices  which is a good indication of increased competition. Cardings changed little and this sector has been a little flat for some time, but maintaining an acceptable level. There are only a few major players in this sector, particularly carbonising types and if even one or two sit back it can cause a flat spot.

One major buyer commented this week that there is a very solid base at present and things could only improve. Unfortunately though we have heard this many times and it depends on their current stock book and current orders. Obviously right now they aren’t holding much stock and must have a few orders. It has to be remembered though that Greece (and the other dominoes in front of it) are still a factor which we have to keep an eye on.

Next week a small offering of 39,689 bales will be offered which should keep them keen.

One final note, March 24 is the date for the Woolstore opening. Mark it in your diary, details will follow soon!

 

Agrisk FDIC Indicative Quotes 27/01/2012

20

21

22

AWEX

1344.5

1302.5

1291.0

Feb-12

1328

1291

1265

Apr-12

1318

1281

1255

Jun-12

1294

1257

1231

Aug-12

1262

1225

1199

Oct-12

1209

1172

1131

Dec-12

1189

1152

1111

Feb-13

1154

1117

1076

Apr-13

1133

1096

1055

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

6081

2

Viterra Wool

5434

3

Fox & Lillie

2757

4

Dalgety Wool Exp.

2248

5

Lempriere Aust.

2077

6

Kathaytex

1912

7

QLD Cotton

1837

8

Williams Wool

1785

9

Chinatex

1692

                       

 

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

                Eastern 1194 cents é (4) compared with 19/01/12                               1.0520 é 0.0123 compared with 19/01/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1227 cents é (3) compared with 19/01/12

20 January 2012

Friday, January 20, 2012

WEEKLY MARKET REPORT

Week Ending 20th January, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
20/01/12

Last Sale
13/01/12

Change

Last Year
20/01/11

Yearly
Change

18

1508

1558

-50

1953

-445

19

1430

1472

-42

1544

-114

20

1349

1394

-45

1145

+204

21

1305

1347

-42

1103

+202

22

1276n

1303

-27

1058

+218

23

1227 (M)

1237 (M)

-10

1008

+219

26

755n

763n

-8

752

+3

28

597

613

-16

579

+18

30

531

556

-25

509

+22

32

481n

518n

-37

446

+35

MC

696

695

+1

688

+8

NEW YEAR’S PARTY WELL AND TRULY OVER

New Year’s celebrations certainly came to an abrupt halt as the wool market gave up practically all of last week’s advances. The bad finish that Fremantle had last Thursday, and our prediction that this could set the trend for this week, was unfortunately spot on. The EMI lost 26 cents compared to the 27 cent rise of the opening sale of the year. With the A$ on the rise the fall in US$ terms equated to just 15 cents after an opening gain of 76 cents. The finer microns fared the best as 17.5 and finer lost 10 to 25 cents. 18 to 19.5 micron fell 35 to 50 cents - identical to the rises of the opening week. The middle microns were mixed, as 20 and 21s lost 40 to 45 cents falling more than the previous sale’s gains, whereas 22 and 23 micron types retreated by 10 to 25 cents after rising 60 to 70 cents at the opening sale. This week’s damage was done early in the sale as Melbourne opened the sale with a 9 cent fall on Tuesday. All three centres were on line on Wednesday with further falls sending the EMI 14 cents lower. Thursday saw a better tone with buyers reporting a solid to dearer market by up to 10 cents for most categories. The AWEX report however showed finer lots dearer, with 19 micron and broader up to 5 cents off with 18 to 18.5 down 10 to 15 cents. This sale was the third largest national offering of the season (the biggest since August). The offering consisted of 30,000 bales of fleece (52%) a jump of 6% on the previous sale.

In defiance to the fleece room, skirtings held onto their gains of last week with all descriptions and VM levels staying rock solid or tending sellers’ favour by up to 10 cents. Cardings had a mixed week to see the MCI add 1 cent to sit at 696 cents. Locks gave up 20 to 25 cents while crutchings added 20 cents to their quotes while stains were unchanged. The volume of XB wool on offer did drop away (20%), but still saw the market retreat over all sectors. 28 and finer lost 10 to 15 cents while the broader microns of 30 and up came off 25 to 35 cents.

Disappointing to see the market drop after such a promising start the previous week. It was hard to pinpoint any real reason for the fall, from the rising A$ to a big weekly quantity to dare we say, Chinese New Year celebrations. A drop in quantity to mid to low 40,000s may help the market over the next few weeks. Futures were trading up to 10 cents dearer late today. This, as well as Fremantle’s Thursday market, can be a good guide to the fortunes of the next sale. We offer 480 bales on Wednesday of next week with the market hopefully to stabilise. 

                        

                                                                               Agrisk FDIC Indicative Quotes 20/01/2012

20

21

22

AWEX

1343.0

1299.5

1275.0

Feb-12

1325

1286

1220

Apr-12

1310

1271

1205

Jun-12

1298

1259

1193

Aug-12

1266

1227

1161

Oct-12

1195

1156

1090

Dec-12

1173

1134

1068

Feb-13

1138

1099

1033

Apr-13

1117

1078

1012

MAJOR AUCTION BUYERS (Bales)

1

Viterra Wool

8898

2

Techwool Trading

4623

3

QLD Cotton

3693

4

Fox & Lillie

2941

5

Chinatex

2791

6

G Schneider (Aust)

2459

7

Williams Wool

2218

8

Modiano (Aust)

1659

9

Lempriere Aust.

1641

                       

 

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

                Eastern 1190 cents ê (26) compared with 12/01/12                                             1.0397 é 0.0095 compared with 13/01/12

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1224 cents ê(26) compared with 12/01/12

13 January 2012

Friday, January 13, 2012

WEEKLY MARKET REPORT

Week Ending 13th January, 2012

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
13/01/12

Last Sale
16/12/11

Change

Last Year
13/01/11

Yearly
Change

18

1558

1509

+49

1857

-299

19

1472

1426

+46

1555

-83

20

1394

1356

+38

1153

+241

21

1347

1320

+27

1116

+231

22

1303

1243n

+60

1069

+234

23

1231n

1160n

+71

1010

+221

26

763n

754n

+9

674

+89

28

613

613

0

523

+90

30

556

555

+1

464

+92

32

518n

518n

0

414

+104

MC

695

673

+22

658

+37

HAPPY NEW YEAR!

The Christmas cheer from the last sale of 2011 extended into the new year as sales resumed after the three week lay-off. Melbourne opened proceedings on Tuesday with XBs accounting for 33% of the catalogue as against the FLC selection making up 35% of the offering. These startling figures illustrate just how much XB wool is still coming through the system. Joinings to terminal sires seems to be as popular as ever or, in some areas, growing whereas convincing growers to join to a merino ram is like telling someone the horse and cart is the way of the future! This high volume of XB wool and the shrinking amount of merino wool must be a concern for not only the breeding industry but also for mills trying to keep up with the ever increasing domestic demand from China and India. All three centres were on line on Wednesday with increases of up to 60 cents for some finer indicators. Thursday saw a minor correction in Sydney of up to 10 cents with Melbourne’s medium types losing 10 to 15 cents. The worrying market was in the west as Fremantle (which can signal market direction for the next selling day) fell 20 to 40 cents. Despite Thursday’s hiccup the increases were still good as the table above shows. The EMI gained 27 cents (2.3%) and in US terms a jump of 75 cents (6.4%). Currency rates remained steady for most of the week at around 103 US cents for 1$ AUD, this representing a 4 cent rise from when sales finished in 2011. A good result despite the currency shift and ongoing economic worries in Europe.

Skirtings mirrored the fleece room as all vm levels and styles made good gains right through to the final lot on Thursday. The best style fine and superfine pieces and bellies added 50 to 70 cents to their pre Christmas values with the broader and less stylish lots gaining 20 to 30 cents. As explained earlier the large amount of XB wool combined with cardings  amounted to 20,000 bales (41%) of the national catalogue - the largest offering in both sections for 12 months. Locks added 40 to 50 cents while crutchings and stains were up to 15 cents better sending the MCI up 22 cents to 695 cents. Crossbreds remained unchanged in Sydney, except for 26s moving 10 cents higher and 5 up in Melbourne where the broader types suffered under the big volume, retreating 5 to 15 cents. Next week’s third largest national catalogue of the season at 57,000 bales may test the market as Thursday’s Fremantle falls could be a precursor to next week. This week’s rise was driven more by a supply shortage than an increase in demand according to a few traders. Interesting times ahead!

                  

                                                                Agrisk FDIC Indicative Quotes 13/01/2012

20

21

22

AWEX

1391.5

1337.5

1301.0

Feb-12

1385

1346

1280

Apr-12

1340

1301

1235

Jun-12

1327

1288

1222

Aug-12

1295

1256

1190

Oct-12

1224

1185

1119

Dec-12

1202

1163

1097

Feb-13

1167

1128

1062

Apr-13

1146

1107

1041

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

5587

2

Viterra Wool

4153

3

Fox & Lillie

3274

4

Kathaytex

3066

5

Modiano (Aust)

2682

6

Williams Wool

2642

7

PJ Morris

1846

8

Chinatex

1736

9

Dalgety Wool Exports

1578

                       

 

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

                Eastern 1216 cents (é27) compared with 16/12/11                                                1.0302 ê 0.0403 compared with 16/12/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1250 cents (é33) compared with 16/12/11

16 December 2011

Friday, December 16, 2011

WEEKLY MARKET REPORT

Week Ending 16th December, 2011

Northern Micron Indices Comparison: Source of information: AWEX

AWEX
INDEX

This Week
16/12/11

Last Week
9/12/11

Change

Last Year
16/12/10

Yearly
Change

18

1509

1469

+40

1631

-122

19

1426

1400

+26

1306

+120

20

1356

1328

+28

1034

+322

21

1320

1299

+21

1008

+312

22

1243n

1221n

+22

961

+282

23

1160n

1138n

+22

904

+256

26

754n

756n

-2

634

+120

28

613

610

+3

484

+129

30

555

558

-3

436

+119

32

518n

533n

-15

405

+113

MC

673

678

-5

651

+22

FROM DOOM AND GLOOM TO CHRISTMAS CHEER

It’s always good to see that our bold predictions in our weekly market reports are somewhere on the money most of the time. We pride ourselves in supplying correct and factual market intelligence to keep our woolgrowers in the loop as to price trends and concise marketing decisions. Sometimes we do get it wrong - when the market takes an unexpected turn for the worse. Last week was a good example, as our prediction of a flat or cheaper market was thankfully wrong. Buyer sentiment changed over the weekend with plenty of enquiry coming out of India, a national catalogue less than expected(11%) and a softening exchange rate all augured well for a strong end to the year before the three week Christmas recess. All three centres recorded good rises as most of last week’s falls were negated by a 21 cent jump in the EMI and a 36 cent increase in Fremantle. All indicators rose by 20 to 45 cents in Sydney. The best result was the 7 cent rise in Melbourne on Thursday as a stand alone selling day, allaying fears of a tapering market. Sydney hosted it’s third smallest so far this season - just 10,011 bales with only 383 lots of fleece on the opening day (one of the smallest on record). The EMI has finished the year on 1189 cents, 158 cents higher (15%) than the same week 12 months ago with the peak at the end of June at an amazing lofty level of 1425 cents.

Skirtings opened the sale on a softer note as better style and low VM types finer than 19 micron gave up 20 cents with the broader burrier lots remaining unchanged. The tone was much the same on the final selling session as again the burrier types came under more buyer pressure pushing these 10 to 20 cents better across all micron categories with 18s and finer irregular and 19 micron and coarser under 5% VM and lower solid. Cardings opened the sale on a solid note as locks added 5 to 10 cents with stains and crutchings unchanged. Unlike other sectors, a cheaper trend set in on the final day as locks gave up the previous day’s advances; stains lost 20 cents and crutchings were unchanged. The MCI is now at 673 cents, this an unfavourable level to the peak of late June of 841 cents! Crossbreds remained basically unchanged for 30 micron and finer as movements were subtle, just a few cents either way. The coarse types, 32 and broader, fell 15 cents.

A good way to end the year and, from what buyers are reporting, the market will open strongly when sales resume on Wednesday 11th January. Thanks to everyone for their support during the year under what turned out to be some very trying circumstances. All the best for the festive season and we look forward to a promising 2012.       

 

                                                                               Agrisk FDIC Indicative Quotes 9/12/2011

20

21

22

AWEX

1330.5

1301.5

1221.5

Dec-11

1340

1301

1235

Feb-12

1327

1288

1222

Apr-12

1300

1261

1195

Jun-12

1255

1216

1150

Aug-12

1223

1184

1118

Oct-12

1152

1113

1047

Dec-12

1130

1091

1025

Feb-12

1095

1056

990

MAJOR AUCTION BUYERS (Bales)

1

Techwool Trading

4920

2

Fox & Lillie

4217

3

QLD Cotton

3987

4

Viterra Wool

3587

5

Williams Wool

3487

6

PJ Morris

2099

7

Chinatex

1375

8

Aust. Merino Exports

983

9

AS Gedge

619

                       

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

                Eastern 1189 cents (é21) compared with 09/12/11                                                0.9899 ê 0.0366 compared with 09/12/11

                Northern Market Indicators (AUD cents/kg clean)

                Northern 1217 cents (é13) compared with 09/12/11