Southern Aurora Markets partner Mike Avery.

“Never discourage anyone who continually makes progress, no matter how slow.” – Plato

IT was a steady week on the wool spot market and forward contracts traded at premiums to cash.

Most micron price indicators improved around one percent to the backdrop of a stable dollar, while unremitting geopolitical noise disturbed commodity markets.

Forward markets traded ahead of the spot early in the week in anticipation of better demand signals and the increasing concern around supply as we move deeper into the season.

The 19 micron and 21 micron contracts traded at a premium to cash. Both are moving steadily to the top of their trading channels that have held for the past few seasons.

Any rally above these levels should be seen as an opportunity to gain some hedge cover.

Trades this week

19 micron March                                              1495 cents

21 micron March                                              1430 cents

Source – Southern Aurora Markets.