FORWARD wool markets found support early in the week, pre-empting a much better tone to the auction market Tuesday and a strong close into the Easter weekend.
Interest returned to the prompt window, with buyers looking to hedge sales.
Growers took the opportunity to take some risk cover out to the end of the season, accepting discounts of 20-40 cents to secure volume, considering the average daily movement of 30 cents in the last month.
Following on from last week, activity continued for 19 microns in the spring and summer. Trading, that last week found a level down to 1370 cents, lifted throughout the week to close at 1410 cents.
With an additional single day sale rostered in the Easter recess next week, we might see a continuation of the current rally. With the autumn break well underway in a number districts, growers should consider setting hedge targets to take advantage of any rallies. The only constant this wool season has been the constant volatility and inherent risk.
Anticipated trading levels
19 micron 21 micron
April/May/June 1480 cents 1440 cents
July/August/Sept 1430 cents 1390 cents
Oct/Nov/Dec 1420 cents 1380 cents
Jan/Feb/March 1410 cents 1360 cents
May 19 micron 1445/1460 cents 15 tonnes
May 21 micron 1415/1440 cents 15 tonnes
June 21 micron 1415/1445 cents 20 tonnes
November 19 micron 1385 cents 5 tonnes
December 19 micron 1410 cents 10 tonnes
January 2021 19 micron 1390 cents 2.5 tonnes
February 2021 19 micron 1380 cents 2.5 tonnes
Total 75 tonnes