FORWARD wool markets traded in a wide range in another difficult week for spot auctions, with prices coming off 50 to 80 cents across all categories.

On the forward markets, growers who hedged early in the week at modest discounts to cash found themselves above spot by the week’s end.

The 19 micron contract traded in June, July and August at 1380c/kg prior to the spot auction opening. With the cash price dropping to 1350 cents, the forwards fell in sympathy, with trading down to 1280 cents for 19 micron in December. The market seemed to find a base at this level with 19 micron trading up to 1300 cents and 21 micron finding interest at 1270 cents.

Continued wet weather in the south is likely to delay some shearing and tighten fresh supply. Demand signals are still weak and are likely to remain so until there is some clarity over the COVID-19 recovery outcomes.

Bidding remains consistent around a base of 1300 cents for 19micron. Interest in the 21 micron contract waned towards the end of the week as the spot prices deteriorated faster at the broader end of the market.

Opportunities for growers to hedge around these levels should hold until auctions re open Tuesday.

Anticipated trading levels

19 micron                              21 micron

May/June                                                         1310 cents                          1270 cents

July/Aug/Sept                                                  1300 cents                          1250 cents

Oct/Nov/Dec                                                   1300 cents                          1250 cents

Jan/Feb/Mar                                                    1280 cents                          1230 cents

Trade summary

June 19 micron                                                1380 cents                        10 tonnes

July 19 micron                                                 1375/1380 cents               20 tonnes

July 21 micron                                                 1260/1340 cents               16 tonnes

August 19 micron                                           1300/1380 cents               15 tonnes

August 21 micron                                           1330/1340 cents               15 tonnes

September 19 micron                                    1330 cents                            5 tonnes

September 21 micron                                    1270 cents                            5 tonnes

October 19 micron                                         1300 cents                          11 tonnes

October 21 micron                                         1270 cents                          10 tonnes

December 19 micron                                     1280 cents                            5 tonnes

Total 112 tonnes