Forward wool market trade steadies then improves for fine wools

Michael Avery, Southern Aurora Markets, August 31, 2018

FORWARD wool markets traded in light volume as the spot auction market looked to steady after a volatile first three weeks of the new season.

Bidding improved as the week progressed and a few growers took advantage, hedging 21 microns for November at 2175 cents and in December at 2160 cents. The 19 micron index traded at 2220 cents for February and 2200 cents for April.

Interest in the fine wools at the spot auction has seen it flow into the New Year forwards. Bidding for the summer and into the New Year could see trading for the 19 micron index reach 2250 cents, presenting opportunities for growers.

This week’s AWEX and AWI wool reports have been delayed due to the fire in a former wool store in Tottenham in Merlbourne’s west. Yesterday’s wool auction at the Brooklyn Wool Selling Centre was cancelled and held today.

Projected forward trading levels for next week

Micron category                                             19 micron                           21 micron

Sept                                                                   2320 cents                         2220 cents

Oct                                                                     2280 cents                         2180 cents

Nov                                                                    2250 cents                         2150 cents

Dec                                                                    2250 cents                         2120 cents

Jan                                                                     2250 cents                         2100 cents

Feb                                                                     2220 cents                         2060 cents

May-June                                                         2200 cents                         2050 cents

July-December                                                2140 cents                         2020 cents

Trade summary

November           21 micron                                          2175 cents          11 tonnes

December           21 micron                                          2160 cents          12.5 tonnes

February              19 micron                                          2220 cents             2 tonnes

April                      19 micron                                          2200 cents             3 tonnes

April                      18.5 micron option strike 2050c premium 40c         20 tonnes

Total 47.5 tonnes



Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.


Get Sheep Central's news headlines emailed to you -