Southern Aurora Markets partner Mike Avery.

THE wool auction market found the support that the forward market pre-empted at the end of last week.

All Merino qualities rose over 30 cents with the medium microns (19.0 and coarser) lifting 60 cents.

While the forward markets only traded sparingly, all activity was around was focused on the Spring.

Although trades were executed in August and September, bidding across was wide range of range of microns. Maturities covered all months August through to December.

Buyers remain cautious and levels are currently below seller’s expectations. Medium wool sellers, 21 micron, are targeting hedge levels between 1320 cents and 1350 cents for the Spring (cash 1309 cents). Selling levels for 19 micron range from 1500-1550 cents against a closing spot of 1470 cents.

The bounce off last fortnight’s lows — 1404 cents for 19 micron and 1242 cents for 21 micron — although anticipated, was a little more abrupt than expected. Prices have retraced almost 300 cents from the February highs leaving scope for healthy recoil.

Hopefully, we will see the momentum continue into the close pushing the spot to closer to grower expectations and deliver some forward hedging opportunities over the period of the recess.

This week’s trades

August 2023                                                       19 micron                            1440 cents                          5 tonnes

Aug 2023                                                              19.5 micron                         1400 cents                          5 tonnes

September 2023                                               19 micron                            1455 cents                          5 tonnes

Total 15 tonnes