THE forward wool markets finished the financial year with a whimper, as record levels paid last week did little to attract interest from growers.
Only 15 tonnes was traded in the new season, albeit at historically good prices. In the 21 micron index, August traded at 1490 cents and September traded at 1430 cents.
Exporters were hesitant to get aggressive further out as demand in the spring is being constricted by the current price spot price. Bidding remained over 1400 cents through to the end of October, even as the spot auction fell 30 to 50 cents to the close. This drew scant interest from growers.
We expect exporter interest to be maintained around the 1450 to 1470-cent level in August. This is about 5 percent under cash (1545 cents). This shows a degree of confidence that the fall in prices this week at auction (around 2.5pc) will steady and hopefully bring demand.
Concern for the spring, centres around the demand being sufficient to maintain prices at historical highs when faced with the seasonally increased supply.
Traded September 2018 at 1350 cents 21 micron.
Indicative forward levels today 21 micron
July 1500 cents
August 1460 cents
Sept 1430 cents
Oct 1410 cents
Nov 1400 cents
Dec 1380 cents
Jan/Mar 1370 cents
Apr/June 1360 cents
July/Sept 1350 cents
Anticipated levels next week
July 19 micron 1800 to 1840 cents
21 micron 1480 to 1520 cents
August 19 micron 1750 to 1800 cents
21 micron 1430 to 1470 cents
September 19 micron 1710 to 1750 cents
21 micron 1410 to 1430 cents
October 19 micron 1680 to 1710 cents
21 micron 1400 to 1410 cents
August 21 micron 1490 cents 10 tonnes
September 21 micron 1430 cents 5 tonnes
Total 15 tons
Source: Southern Aurora Wool.