Wool Market Reports

Forward wool market reflects slight lift in demand

Guest Author, March 1, 2024

Southern Aurora Markets partner Mike Avery.

“When you have expectations, you are setting yourself up for disappointment” – Ryan Reynolds

THE spot auction wool market this week delivered the most positive start that we have seen since the opening day of the auctions for the year.

The 18 micron and broader wool prices all rose between 5 and 15 cents, with the super fines and the crossbreds a little easier.

Expectations were that after the Lunar New Year, demand may now finally lift. The forward market mirrored this view with the bids generally flat to spot out to June. The 19 micron contract was bid at 1415 cents for March and in June a 5-10 cent premium.

Wednesday disappointed at the auctions, with offshore interest muted at best seeing the market generally losing the gains of Tuesday. Buyers persist with solid bidding in the forwards as they look to hedge their sales.

Fine wools have lost around 100 cents since Christmas and medium wools 30-60 cents over this eight-week period. It is difficult to see where the change in the pattern will come while the main global drivers remain in neutral.

Opportunities for hedging remain in place March to June highlighted by 19 micron at 1415 cents (cash 1407 cents) and 19.5 micron at 1375 cents in May (cash 1375 cents).

Source – Southern Aurora Markets.

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