Southern Aurora Markets partner Mike Avery.

“Learn from yesterday, live for today, hope for tomorrow. The important thing is not to stop questioning.” — Albert Einstein

IT was another solid week for the wool auction market in Australia.

Prices rose for the fourth consecutive session, helped by a continuing strong USD.

Finer wools were the chief beneficiary, with 19 micron and finer fleece rising 20 to 40 cents over the week. This is to be expected, as they have been most affected by the decline in prices that beset the market since the New Year opened.

Forward markets continue to trade premiums to spot. Sellers accepted the premiums on offer early in the week, with 19 micron contract executed at 1445 cents for May and 1440 cents for June. The 21 micron contract traded at 1335 cents for the same months.

Volumes remain light and bidders continue to dominate sellers. Key functions of a forward market should be to give participants an indication of price and demand and supply the mechanism for buyers and sellers to gain some degree of certainty in the future.

Bidding should remain positive into next week. Buying levels are focused at and above cash for maturities where growers have shown interest in wanting to hedge part of their production. Valuing certainty over the fear of lost opportunity is the key message in these tentative times.

This week’s trades

May 2024 21 micron                                        1335 cents                           7 tonnes

June 2024 19 micron                                       1440/45 cents                 12 tonnes

June 2024 21 micron                                       1335 cents                            5 tonnes

Total 24 tonnes