Mixed bag on wool auction and forward markets

Michael Avery, Southern Aurora Markets partner, May 28, 2021

IT was a mixed bag for the wool auction market and thin volumes were traded on the forwards early in the week, followed by a Friday flurry.

The auction market delivered continued gains at the superfine end, but fine and medium microns that had been dragged along lost momentum. Micron Price Guide changes included: 17 micron, +60 cents; 18 micron, +36; 18.5 micron, +17; 19 micron, +15 cents; 19.5 micron, -7 cents; 20 micron, -16 cents; 21 micron, -30 cents and 22 micron, -38 cents. Crossbreds remain friendless.

The forward market although thinly traded early in the week traded 48 tons Friday morning. The premiums being paid attracted grower across the New Year maturities. The emerging interest being shown by growers is understandable when looking at the last twelve months range and the longer-term percentiles. The 19 micron contract traded at 1680 cents in January, February and April 2022. That represented a 44 cent or 2.6 percent premium to the closing spot auction market (1636 cents) and in the 70th percentile on the 11-year chart. The spot auction market high for the last 12 months is 1643 cents. It last traded in excess of 1680 cents in March 2020.

These are all positive signs for the market moving forward, but highlight the value of placing certainty on a portion of next year’s clip. January and February 2022 continue to be bid at 1670 cents. Solid levels (1650 cents) are also being offered for 19 microns into the first half of 2023.


This week’s trades

June 19 micron                                                1630 cents                                        5 tonnes

Oct 18 micron                                                 1935 cents                                       2.5 tonnes

Oct 20 micron                                                 1360 cents                                        5 tonnes

Jan 2022 19 micron                                         1670/1680 cents                             40 tonnes

Feb 2022 19 micron                                       1680 cents                                          8.5 tonnes

April 2022 19 micron                                      1680 cents                                          5 tonnes

Total 66 tonnes






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