Southern Aurora Markets partner Mike Avery.

“An airplane takes off against the wind not with it.” – Henry Ford

IT was an interesting week for all concerned, with the two big races having come and gone with results mixed to say the least.

The first, the Melbourne Cup, was run and won by a rank outsider, but provided the feel-good story of the week.

By contrast, the USA election delivered a result — Donald Trump’s victory — that has the world a little apprehensive.

The wool spot auction market had a varied week selling over three days due to the public holiday in Melbourne. It was a positive result with most micron groups posting gains. Middle microns, 19-21 and crossbreds fared best, gaining between 1.5-2 percent. These gains were against a backdrop of a strong US dollar confirming the long-held view that currency movements modify the loses or gains on commodity markets, but do not define direction.

The forward wool markets had an interesting week. Trade early in the week was focused on the latter months of 2025. Most micron groups traded with maturities varying from April through to November 2025. Premiums ranged from 30-100 cents. The highest premiums were for the later dated maturities.

Later in the week, the front months came to the fore. The 19 micron contract traded December at 1425 cents — a 24-cent premium. Interest remains across November and December at plus 10 cents to spot, and January and February at 30 cents over cash. The latter part of 2025 and into 2026 remain bid in limited quantities at 50 cents-plus to cash.

What the future holds is anyone’s guess, with USA policies as hard predict as the man himself. This was highlighted by the movements in the cotton market; flat Wednesday ahead of the election, but down Thursday and coming under pressure from a rising US dollar and falling oil prices. On Friday, cotton found support that was attributed to US economic optimism post Trump’s re-election. Uncertainty is the only common denominator for the time being.

Hedging levels are likely to remain in place, with interest in place from spot to February and again in the latter part of 2025. Auction flows continue to be steady. With passed-in rates around 5pc hopefully the premiums in the forwards will attract attention.

Traded this week

December 2024 19 micron                                          1425 cents                         10 tonnes

April 2025 19.5 micron                                                 1425 cents                         10 tonnes

May 2025 21 micron                                                     1330/1350 cents               15 tonnes

November 2025 19 micron                                          1505 cents                           5 tonnes

Total 40 tonnes

Source – Southern Aurora Markets.