News

Forward wool marketers hold fast on the fence

Guest Author, July 18, 2022

Southern Aurora Markets partner Mike Avery.

THE spot wool market closed with its common last day rally last week, as exporters and processors filled orders prior to the three-week break in sales.

Still, most micron qualities lost 20 to 30 cents over the week, as the market buckled under the weight of 60,000-plus bales on offer.

Questions again arose about the timing and the length of the recess.

The forward markets were again not immune, with buyers generally exiting, remaining on the fence until they have seen a solid indication of a demand rebound.

This is certainly not restricted to wool. More substantial falls in commodity prices, both locally and overseas, have occurred as markets continued to react to the concerns around a global recession.

Hopefully, we will see renewed demand over the recess and subsequent trades on the forwards. The image below represents the relationship between forward price maturities and the spot market so any action during the break could be a good indicator into the spring.

Auction wool sales resume 9th August

This week’s only trade

April 2023 17 micron  2350 cents 10 tonnes

HAVE YOUR SAY

Your email address will not be published.

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Contributions that contravene our Comments Policy will not be published.

Comments

Get Sheep Central's news headlines emailed to you -
FREE!