Southern Aurora Markets partner Mike Avery.
“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty” – Winston Churchill
IT WAS an ambiguous week for selling wool, with auctions delivering the strongest single day rise in the AWEX Eastern Market Indicator on Tuesday since before Christmas, in Australian and US dollar terms.
This was followed by an underperforming day to close the week on Wednesday.
The forwards once again did all their work Tuesday, with May trading at a premium to spot on the back of the auction momentum. This once again highlighted the value for sellers of having a target price on the screen.
The 19 micron contract traded at 1455 cents (+17 cents to the auction close), 19.5 micron at 1425 cents (+25 cents to close) and the 21 micron contract was at 1355 cents (+16 cents to auction close).
The Tuesday rally took all the offers out of the nearby trading window — May to July. Wednesday’s indifferent market has left the buyers cautious. Sellers are gradually returning, but volumes remain light and bidders continue to dominate sellers.
It remains a difficult and challenging market for buyers, sellers, and analysts alike. Valuing certainty over the fear of lost opportunity remains the key message.
This week’s trades
May 2024 19 micron 1455 cents 10 tonnes
May 2024 19.5 micron 1425 cents 2.5 tonnes
May 2024 21 micron 1355 cents 12 tonnes
HAVE YOUR SAY