THE wool market struggled at auction this week, with all micron groups losing ground as buyers continued to be concerned about finding business off-shore at these levels.
Finer microns lost up to 20 cents while medium microns tried to hold their prices. This was reflected in the forward market.
The 21 microns traded November and December near cash — 1530 to 1540 cents — but few growers took the opportunity to lock in certainty over summer production. Bids on the finer microns retreated, in line with the auction, as the week progressed.
Volatility in the currency saw the A$ trade in an almost two-cent range, adding to the uncertainty for exporters. Buyers and sellers are looking for direction in a market that been on a rollercoaster since the return from the break.
The 19 microns opened the season at 1838 cents, rose 89 cents in two weeks to then lose 102 cents in the next two weeks. They rose 23 cents to retrace 69 cents to 1784 cents, 54 cents under the season open.
The movement in 21 micron has been a little less dramatic to the downside but still volatile. Opening the season at 1534 then market rose 131 cents, then gave back 83 cents. The market steadied between 1580 and 1590 cents, before giving up 44 cents last week to finish at 1549 cents, 15 cents above the season opening.
We end the week, particularly for 21 microns, surprisingly steady for the balance of the year and into January and February, considering the last six week’s movement.
Seven-year percentile bands
18 micron 90pc 2120 cents 95pc 2050 cents
18.5 micron 90pc 1870 cents 95pc 1950 cents
19 micron 90pc 1700 cents 95pc 1830 cents
20 micron 90pc 1504 cents 95pc 1587 cents
21 micron 90pc 1430 cents 95pc 1485 cents
28 micron 85pc 800 cents 95pc 870 cents
Anticipated trading levels next week
18.5 micron 19 micron 21 micron
October 1920 1750 1530
November 1910 1750 1530
December 1900 1750 1530
Jan to March 1890 1730 1490
April to June 1870 1720 1470
November 21 micron 1530/1540 cents 20 tonnes
December 21 micron 1540 cents 4.5 tonnes
Total 24.5 tonnes