Southern Aurora Markets partner Mike Avery.
“People say nothing is impossible, but I do nothing every day.” ― A.A. Milne, Winnie the Pooh.
IT was another week where the spot auction and forward wool markets continued their meandering ways.
At auction, passed-in rates remain low and wool is flowing through the pipeline.
The positive side is that there is little build up in stocks to dampen any recovery in price when better demand does come. This is balanced by the fact that season-to-date testing — July to present — is down 20 percent and prices have oscillated in a very tight range.
The 19 micron Micron Price Guide opened in July at 1379 cents, with a peak of 1418 cents, a low of 1331 cents, average 1373 cents and is currently 1412 cents. For 21 micron, it was a similar story; opening in July at 1296 cents, a high of 1311 cents, low of 1232 cents, average of 1276 cents and currently 1311 cents.
Demand remains the key. The blip caused by the positive reaction to the US elections has somewhat abated. Most commodities are in a wait and see mode with little to play out until the New Year. Demand out of our key markets remains intermittent at best.
The forward market posted only one trade for the week with November 2025 traded at 1475 cents, 63 cents over spot.
Generally, the forward market is better bid than offered, but remains frustratingly illiquid. More activity is required before we can put faith in the robustness of the forward curve.
Bidding currently presents a curve that is flat to Christmas, a 20 cent (1.5pc) premium in early 2025, 40 cent (3pc) premium in late 2025 and an 80 cent (6pc) premium into 2026.
It is difficult to see too much change next week. Supply remains steady at their seasonal lower levels. The roster for the next three weeks, year on year, still coming in around 15-20pc down. Bidding in the forwards should hold until the auction opening Tuesday.
Trades this week
November 2025 19 micron 1475 cents 2 tonnes
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