Forward wool markets attract modest volumes

Michael Avery, Southern Aurora Markets partner, October 7, 2022

Southern Aurora Markets partner Mike Avery.

IT was another tough week for all markets as the spot wool auction market continued its search for a base.

Finer wools continued their slide off their June highs, with the 16.5 and 17 micron wools losing 4 percent, the 17.5 and 18 micron wools losing 2pc and the 19.0 and 19.5 micron categories dropping 1pc.

The broader microns remained relatively unchanged for a limited selection.

The forward markets once again had just modest volumes, but spread over microns and maturities. The majority of business fell in the prompt months will growers looking for a bit of price certainty over the next eight weeks.

Fine wool growers again dominated the New Year with 18 micron buyers still requiring a discount to spot rates, but 19 micron buyers were happy to get some cover flat to cash.

Next week we are likely to see the same type of activity. Buyers are keen to cover short-term demand when it appears. There is modest New Year demand around cash for the 19 micron wools which are now around their 12-year range band at 1450 to 1550 cents. Finer micron buyers will still likely be looking for a discount.

This week’s trades

October 19 micron                                                         1490 cents                        5 tonnes

October 21 micron                                                        1250 cents                        5 tonnes

November 18 micron                                                    1750 cents                        5 tonnes

November 21 micron                                                    1220/30 cents                20 tonnes

February 2023 18 micron                                             1730 cents                        7 tonnes

April 2023 19 micron                                                     1500 cents                         5 tonnes

Total 47 tonnes


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