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
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