Uncertainty challenges wool auctions and forward trading

Michael Avery, Southern Aurora Markets partner October 13, 2023

Southern Aurora Markets partner Mike Avery.


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


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