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