Southern Aurora Markets partner Mike Avery.

THE wool forward market followed the slow grind of the auction sector in Australia last week.

Tight supply continues to limit the downward pressure on the auction market.

Merino micron price guides tended to realign. Finer microns that had slipped over the last few weeks were steady and medium microns were weaker. Crossbreds were dearer again this week.

Exporters report slightly better demand signals, but this has yet to translate into significant firm orders. Offshore political tensions continue to effect global consumer confidence.

In the forward market, premiums in the spring saw 19 micron trade 33 cents over closing cash before pulling back slightly. Bidding was again light, but at a premium to spot. The only trade for the week came in September with 19 microns trading.

The fall in the Merino prices on Wednesday led to short-term interest disappearing for the moment. Spring and early summer continue to be well supported by buyers although volumes remain limited. The 19 micron contract is still bid 10 cents over spot for October. The 21 micron contact is bid 18 cents over for December. Forward sellers remain generally on the fence.

Hopefully the welcome rains in Southern Australia are a precursor to a positive close to the wool auction season.