IT was a quiet week in the forward wool trading as the physical market looked for direction.

All eyes were turned towards the 30th annual Nanjing Wool Market conference this week.

The mood of the conference was buoyant, but opinion was divided on the medium and long term ability of the market to maintain these levels. High on the minds of processors was the continuing trade issues with China and the USA. Sentiment on the impact of the tariffs varies from day to day.

Financing along the pipeline is getting tighter, resulting in some discounting of stocks to satisfy bank commitments. These negatives to the market are somewhat balanced by solid demand and low supply especially in the finer microns.

Interest remains out to the middle of next year and highlighted trades on the 19 micron contract were 2300 cents in January out to May at 2255 cents. The 21 micron contract attracted less interest, reflecting the lack of anticipated long term demand at these levels.

Generally, buyers are finding it difficult to attract demand over 2200 cents in October, 2150 cents December and 2100 cents in the New Year.

Projected forward trading levels for next week

Micron                                               19 micron                           21 micron

Sept                                                    2360 cents                         2220 cents

Oct                                                      2360 cents                          2210 cents

Nov                                                     2300 cents                          2180 cents

Dec                                                     2300 cents                          2150 cents

Jan                                                      2300 cents                          2140 cents

Feb                                                      2300 cents                          2120 cents

May/June                                          2250 cents                          2090 cents

July/Dec                                             2200 cents                          2060 cents

Trade summary

October               19 micron            2360 cents                          2 tonnes

October               21 micron            2210 cents                         2 tonnes

November           18 micron            2600 cents                          5 tonnes

January                19 micron            2300 cents                          2.5 tonnes

February              19 micron            2325 cents                          2 tonnes

April                      18 micron            2510 cents                         10 tonnes

May                      19 micron            2255 cents                           5 tonnes

Total 28.5 tons