THE forward wool market maintained momentum as the spot auction found a base for most microns last week.

Growers took advantage of buyer interest in the first half of next year. The 19 micron index cracked the 2000 barrier in February with hedgers locking in at historic levels. The 21 micron index traded above 1625 cents in March and out to 1595 cents in May.

Buyer interest remained solid all week, but on limited quantity, with concerns over medium term risk at these price levels. Focus for the coming week will be on finalising pre-Christmas export orders.

We expect buyers to continue to add to their first quarter inventory, giving growers good opportunities into the first and second quarters.

The first indication of interest in the spring next year came through during the week. This was based on early yarn enquiry that translated to index levels of 1800 for 19 micron and 1500 for 21 micron.

Anticipated trading levels next week

19 micron      21 micron

Jan/Feb                  2000 cents    1630 cents

Mar/Apr                 1960 cents    1620 cents

May                         1950 cents    1590 cents

June                         1940 cents    1570 cents

Trade summary

January      20 micron     1720 cents                                                     5 tonnes

February    19 micron     2000 cents                                                     5 tonnes

March         19 micron      1955 cents                                                     5 tonnes

March         21 micron      1625 cents                                                    15 tonnes

March         21 micron  Put 1590 cents  Strike 50 cent premium     2 tonnes

March         21 micron  Put 1530 cents  Strike 30 cent premium     5 tonnes

April            19 micron       1930 cents                                                    2.5 tonnes

April            21 micron       1570/1595 cents                                        17.5 tonnes

May             19 micron       1930/1960 cents                                         5 tonnes

May             20 micron       1725 cents                                                    5 tonnes

May             21 micron       1565/1595 cents                                        26.5 tonnes

June             21 micron       1569 cents                                                    5 tonnes

July               21 micron  Put 1520 cents  Strike 60 cent premium   2.5 tonnes

Source: Southern Aurora Wool.