Southern Aurora Markets partner Mike Avery.

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence,” – Helen Keller. 

THE spot auction and forward wool markets continued their slow grind this week.

Tight supply is somewhat limiting the downward pressure on the auction market, with Merinos slipping slightly and crossbreds dearer.

Demand continues to be muted, with little positive to be gleaned from either the economic or political rhetoric.

Forwards provided the little solace there was to be had. Bidding was light, but at attractive prices to spot. The only trade for the week came in July with the 19.5 micron contract trading at a 27-cent premium to cash at 1510 cents. The fall in the Merino fleece prices on Wednesday saw short term interest disappear for the moment.

Spring and early Summer continue to be well supported by buyers although volumes remain limited. The 19 micron contract is bid 10-20 cents over cash for September and October. The 21 micron contract is relatively flat to cash out to December. Interest from sellers remains tepid to say the least.

There is little indication that much will change in the outside influences as the market heads into the season recess. Faith that the long-term eco-credentials and virtues of the fibre will see through the headwinds.

Source – Southern Aurora Markets.