“It’s tough to make predictions, especially about the future.” Yogi Berra.
The wool auction market struggled to keep the momentum going last week as we moved closer to the Christmas recess.
The 18 micron and coarser fleece all lost about 1 percent for the week, with the finer wools still holding their ground.
Clearance rates remain solid, with about 90 percent of the wool offered being sold.
The forward market remains becalmed with almost a complete lack of interest from the sellers. The only trade executed this week was 19 micron at 1455 cents for January. This was flat to cash on the week’s open and a premium by the close on Wednesday.
The bidding understandably has pulled back a little, with the spot auctions particularly soft into the close of sales in Fremantle. Prices are holding steady through January and February at around 1pc under cash.
Buyers are keen to hedge and take insurance into the New Year, but growers seem to be content to sit on the fence and see what it brings.
The season to date has seen prices fall from the open, rally then retrack also monthly. The lack of traction in the forwards would indicate that little value is being placed on certainty and more on the fear of lost opportunity.
This week’s trade
January 2024 19 micron 1455 cents 5 tonnes
Click here for details on a WoolProducers webinar on 7 December.
Source – Southern Aurora Markets.