IT was an up and down week for wool at auction and on the forward markets.

The forward indexes traded near cash in November and December before falling away. The split auction days increased the choppy market outcomes.

Forward volumes were only moderate as buyers and sellers looked for direction. Support at auction Thursday saw more bidding interest and the forward curve flatten into Christmas on the finer qualities.

The 19 micron index traded early in the week at 1760 cents, then down to 1750 cents, before closing Thursday bid at 1770 cents. Middle microns, particularly 21 microns, eased in the spot market over the week. Bid early in the week at 1530 cents, the 21 microns traded at 1520 cents slightly under the closing quote.

We expect the curve to remain flat next week into the Christmas recess. Interest in the New Year has moderated due to the increased volatility.

Anticipated trading levels next week should present growers ample opportunities to hedge through summer at historically sound levels.

18.5 micron         19 micron            21 micron

October               1920 cents           1770 cents           1510 cents

November          1920 cents           1770 cents           1510 cents

December           1920 cents           1760 cents           1510 cents

Jan to March      1900 cents           1740 cents           1490 cents

April to June      1880 cents           1700 cents           1450 cents

Trade summary

November          18.5 micron         1920 cents                           5 tonnes

November          19 micron            1750/1760 cents                15 tonnes

November          21 micron            1520 cents                          10 tonnes

December           18.5 micron        1910 cents                          10 tonnes

Total 40 tonnes