FORWARD wool markets reacted as the spot auction sector continued the recovery that started last week.
The down cycle lasted 27 auction days (13 weeks) and the bounce just 5 days. The medium wools have clawed back almost half of their losses.
Although the momentum didn’t slow into the close of the week, the test will come as buyers look to gauge new demand levels over the coming days.
The forward markets reacted with buyers lifting levels to cash and above to secure any nearby offers and snapped up any discounted offers in the New Year. This initial activity stalled as buyers looked for confirmation of off shore interest at the new levels.
The rapid rise has bought out selling interest. As the chart below shows, the rebound has put the 19 micron level at 1634 cents, back into the trading channel that it has comfortably held in for 18 months.
Growers looking to gain some surety on price are targeting 1610 to 1620 cents for the run to Christmas. In the New Year, grower targets seem to be set on the three-year average of 1590 cents.
This week’s trades
November 19 micron 1600/10 cents 15 tonnes
April 2023 21 micron 1275 cents 5 tonnes
September 2023 19 micron 1550 cents 5 tonnes
Total 25 tonnes
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