THE forward wool market finally fatigued this week as buyers finally relinquished their support into the first quarter of 2020.
For the last month, exporters have bid at cash for January through to March. Less than 100 tonnes was traded for the month, with closing prices at 1780 cents for 19 micron and 1730 cents for 21 micron.
With all micron qualities losing over a dollar during the month, exporters have been hampered by the lack of forward offers. Offshore interest has been tepid and any eagerness to secure stocks for deliver prior to the Chinese New Year has gone off the boil.
It is difficult to see how this situation will change going into the last two weeks of sales before the Christmas recess. The only hope is in the lesson of the last twelve months; that the auction and forward markets have been predictably unpredictable.
In the absence of the spot market finding much needed support, it is unlikely that exporters will bid strongly for the late summer and early autumn, even as supply concerns continue to overhang the market.
Grower offers into that period around cash — 19 micron at 1710 cents and 21 micron at 1675 cents — could attract the attention of exporters and processors looking to secure some supply.
Indicative trading levels for next week
19 micron 21 micron
December 1700 cents 1650 cents
January/March 1680 cents 1630 cents
April/June 1660 cents 1610 cents