Southern Aurora Markets partner Mike Avery.
THE forward wool market remained steady as auction prices lost ground across Australia this week.
All Merino qualities moved down around 1 percent at auction as the market found resistance after three weeks of positive moves.
The forward market remained steady with the focus mainly on the nearby months as buyers looked for certainty into the close of the season. A broad range of microns were traded — from 18 micron through to 21 micron at flat to cash. Buyers remain cautious into the Spring, but are willing to cover sales as they occur.
In the key 19 Micron Price Guide, forward trades have been relatively consistent, with long-term resistance in the New Year at 1700 cents. Closer in prices have been a little more variable, reacting to short-term volatility in the spot market and in the currency.
Forward levels next week are expected to remain relatively stable. The risk off attitude of the market seems to still be in place. Opportunities to hedge forward will still be there, although turnover remains restricted.
19 MPG 21 MPG
May to July 2022 1720/1730 cents 1320/1340 cents
August to December 2022 1690/1705 cents 1310/1320 cents
January to July 2023 1690/1700 cents 1270/1300 cents
August to December 2023 1680/1700 cents 1280/1310 cents
This week’s trades
June 18 micron 2200 cents 5 tonnes
June 18.5 micron 1970 cents 5 tonnes
June 19 micron 1740 cents 5 tonnes
June 19.5 micron 1560 cents 5 tonnes
June 21 micron 1335/50 cents 7 tonnes
September 19 micron 1695 cents 10 tonnes
November 17 micron 2510 cents 5 tonnes
Total 42 tonnes
Source: Southern Aurora Markets.
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