WOOL auction sales this week delivered on the expectations of supply pipeline participants with a brighter start to 2022.
All micron groups rose steadily across the week as buyers looked to fill commitments and balance their books after the three-week recess.
Forward markets continued their recent trend of trading at spot or a slight premium to cash with buyers keen to hedge where they can lock in a margin. Although trading volumes remain light potential for risk management was evident up to 20 months forward with 19 micron trading in September at 2023 cents and at cash at 1700 cents. In October 2022, 19 micron traded at 1715 cents.
The percentile chart below indicates that, especially on the finer microns, we are now sitting above the 70th percentile for prices for the last 12 years.
We anticipate continued interest and the forward curve to remain flat to a slight premium.
Recent trades
February 18 micron 2100 cents 2.5 tonnes
February 30 micron 375 cents 5 tonnes
March 18 micron 2100 cents 5 tonnes
May 19 micron 1680/5 cents 10 tonnes
October 19 micron 1715 cents 2.5 tonnes
September 2023 19 micron 1700 cents 5 tonnes
Total 30 tonnes
Source: Southern Aurora Markets.
HAVE YOUR SAY