FORWARD wool trading was limited as the declining auction market trend continued again this week.
The Eastern Market Indicator fell for the fifth consecutive week.
Broader wools fared slightly better on the last trading, but still failed to post rises for the week. The EMI now fallen each trading day after the opening day following the Christmas recess.
Forwards were once again ignored by growers. Although bidding was light it remained at a premium. The 18.5 micron contract traded at 1515 cents — a 10-cent premium on the day — and a 20-cent premium by the week’s end.
Bids on the 19 micron contract at 1430 cents were left unfilled. The levels have now fallen to 1410 cents.
Buyers are still looking to hedge small quantities March through to June. Bids are generally flat to spot cash.
With Lunar New Year continuing through next week, we expect another quiet period of demand. This will be slightly balanced by a smaller than normal offering nationwide of under 45,000 bales.
This week’s trade
18.5 micron February 1515 cents 5 tonnes
Source – Southern Aurora Markets.