THE market struggled at auction and in the front months of the forwards as a lack of offshore demand signals, particularly in the finer wools, put continued pressure on prices.
Although most fine wools have lost 150 cents over the last fortnight, they are only back to pre-Easter levels, 200 cents above the start of the year and up to 500 cents above the same time last year. This partial explains the reluctance of buyers into the spring and the discounts to spot.
The 19 micron index traded from 1478 to 1567 cents from August through to the end of October, averaging 1514 cents. Forward interest for those month is holding around 1700 cents.
The picture on the 21 micron index is a little different. The price range throughout the season has been quite wide (1350-1538 cents) and volatility has been high. Supply pressure has held prices above 1400 cents for most of the season and it is trading at a slight discount to spot out to July (1455-1470 cents). The spring levels have held well in comparison to the fine wools, with the key 1400-cent level trading again this week.
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Anticipated levels next week
June/July 19 micron 1770-1800 cents 21 micron 1460-1475 cents
August 19 micron 1720-1750 cents 21 micron 1400-1405 cents
September 19 micron 1700-1740 cents 21 micron 1390-1400 cents
October 19 micron 1670-1700 cents 21 micron 1370-1390 cents
Trade summary
June 19 micron 1840/1850 cents 7 tonnes
June 21 micron 1470 cents 10 tonnes
July 19 micron 1800 cents 3.5 tonnes
July 20 micron 1540 cents 5 tonnes
Sept 21 micron 1400 cents 10 tonnes
Total 35.5 tons
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