BROAD wool-buying interest pushed the spot auction market higher this week as exporters and processors finalised their prompt purchases ahead of the Christmas/New Year recess.

This translated into better activity on the forwards with all Merino qualities trading at the top end of the range established this season. (See table below).

The 19 micron index traded out to May this week at 1420 cents and closer in, with January and February at 1430 cents.

Buyers and sellers were looking for some New Year certainty locking in hedge levels predominantly in the first quarter. The forward activity continued post-auction, with trades on Thursday and Friday at the week’s highs.

Next week, closes the spot auction for the first half of the season. The 49,000 bales rostered will test the resolve of the market as we head into the three-week recess. We expect light activity around current levels on the forwards next week as growers and exporters alike look to get some hedges on and add some certainty to their positions in the New Year.

Indicative trading levels next week

19 micron                           21 micron

January                                                                            1430 cents                         1210 cents

February                                                                          1430 cents                         1200 cents

March/April                                                                    1425 cents                         1200 cents

May/June                                                                        1420 cents                          1190 cents

This week’s trades

February 18 micron                                                       1605 cents                          3 tonnes

January 19 micron                                                         1390/1430 cents               24.5 tonnes

January 21 micron                                                         1210 cents                           5 tonnes

February 19 micron                                                       1405/1430 cents               12 tonnes

March 21 micron                                                           1205 cents                           5 tonnes

May 19 micron                                                               1400/1420 cents                5 tonnes

TOTAL                                                     54.5 tonnes

The incidence and level of forward wool trades for the first six months of the season.