Southern Aurora Markets partner Mike Avery.

THE wool auction market continues to go nowhere fast and forward trading remains apathetic.

The Eastern Market Indicator remained unchanged this week, with the weakness in the Merino section balanced by the strength of crossbred and carding wools.

Light forward bidding flat to cash into the spring, early in the week, bought out a few sellers looking for insurance. Levels traded finished 2-3 percent over the closing of their relative micron price guides. Bidding withdrew as the Merino market’s “get up and go” had gone off and went.

The year that started with such promise failed to deliver. Most Merino types rose steadily gaining up to 150 cents in the first quarter. Unfortunately, this failed to spark any significant interest in the forward market and opportunities were left on the table for sellers and buyers. The second quarter has seen much of the Merino market slip upwards of 100 cents, around two thirds, from those peaks.

Consumer confidence and demand are the drivers of the wool market. The malaise that continues to overshadow all markets has been moderated in the wool market by the tight supply. As we move toward the July/August recess, hopefully the tight supply will be enough to hold levels and provide time for new demand to kick in to balance the spring lift in supply.

Trades this week

19 micron October                                           1520 cents                           10 tonnes

19.5 micron October                                       1510 cents                            7.5 tonnes

Source – Southern Aurora Markets.