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
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