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
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