“Do not judge me by my success, judge me by how many times I fell down and got back up again.” – Nelson Mandela
IT was another challenging week for the spot wool market, mirroring the uncertainty that seems to be every present across all commodities and geographies.
Most micron groups lost ground, with even the crossbreds that had been steadily working off their lower base, succumbing to the widespread insecurity.
The forward market started the week with some healthy signs. Solid bidding in the front window provided growers and exporters with opportunities to hedge a little of their nearby risk. This was followed by some flat to cash bidding out in the first half of 2024 on the 18-19 micron groups. The patchy nature of the spot auction motivated the sellers to trade the first quarter of 2024 with 18 micron executed at 1500 cents and 19 micron at 1390 cents.
The ongoing crisis in the Middle East has given the forward market pause, with most forward bids put on hold. Uncertainty is curbing the fragile confidence that was building particularly in Europe.
Hopefully, exporters and traders will have found some continuing demand out of China and India to steady the market at current levels and bring support back into the New Year forwards.
This week’s trades
October 2023 19 micron 1390 cents 5 tonnes
October 2023 21 micron 1290 cents 5 tonnes
November 2023 20 micron 1300 cents 5 tonnes
January 2024 18 micron 1500 cents 5 tonnes
January 2024 19 micron 1390 cents 10 tonnes
February 2024 18 micron 1500 cents 5 tonnes
March 2024 18 micron 1500 cents 5 tonnes
Total 40 tonnes