Southern Aurora Markets partner Mike Avery.

LIMITED forward wool trading this week again followed the Australian auction market.

It was another case of cut and paste from last week as tight supply continues to limit any downward pressure.

With only Sydney and Melbourne selling Micron Price Guides all tended dearer. Finer microns all gained, medium microns were steady. Crossbreds were dearer again this week.

In limited trade, the forward market again followed the auction. Premiums in the spring saw 19 micron trade 15 cents over closing cash before settling bid 5 cents over. Spring and early Summer interest in the fine wools has returned with 17, 17.5 and 18 micron now bid 5 cents over cash although volumes remain limited.

Both the 19-21 micron contracts are bid 5 cents over, but limited to mid-September. Sellers remain generally on the fence mainly reacting to specific bids.

The outlook remains flat at best, with financial markets cautious in this risk on environment.

Consumer confidence remains low, with the only bright spot in some domestic Chinese sales figures looking better.

Trades this week

18.5 micron July                                                             1550 cents                                            5 tonnes

19 micron September                                                    1545 cents                                           10 tonnes

Source – Southern Aurora Partners.