Southern Aurora Markets partner Mike Avery.

“Learn from yesterday, live for today, hope for tomorrow.” – Albert Einstein

IT was another lacklustre week on Australia’s wool auction and forward trading markets, with supply and demand seemingly in balance as the spot market stumbles into the recess.

Most fine Merino qualities lost ground, even with the advantage of a strong USD that saw the cross-rate dip to its lowest point for 14 months.

The macro-economic situation and geopolitical conditions weigh heavily on consumers across with cost-of-living pressures front of mind.

The forward market reflects this with sporadic trading when demand lifts and traders look for cover. This week’s trades were confined 19.5 microns. January traded at 1415 cents and May at 1425 cents. These represented 35 and 45 cent premiums to the close of auction.

Bidding for the New Year remains steady with premiums rising as we move through the year. Premiums start around 1 to 2 percent for the first quarter raising to 4pc at year’s end.

2026 is currently bid in small quantities at a 6pc premium.

This week’s trades

January 19.5 micron                                                     1415 cents                           5 tonnes

May 19.5 micron                                                           1425 cents                         10 tonnes

Source – Southern Aurora Markets.