Southern Aurora Markets partner Mike Avery.

“We must accept finite disappointment, but cannot lose infinite hope” – Martin Luther King Jr

THE least said about this week the better, as it was another melancholy for the wool auction market.

Tight selection saved more significant losses as prices faded between half and one percent, with finer types once again most affected.

The rally in prices in early October now appears a distant memory. Expectation that the widely reported Chinese Government stimulus package, coupled with a strong USD, would provide the remedy to the woes of the market were short-lived.

Forward markets started the week bid out to Christmas flat to cash. Upon attracting an offer slightly over spot they traded at what seemed a modest premium to cash in November at 1425 cents for 19 micron. Failing to find further interest, buyers retreated to see how the spot behaved. Disappointment followed and the market was left sparsely bid and offered.

This calendar year has been characterised by sharp short-lived rallies; six in total, coupled with an equal number of decays. The result is a deterioration of between 5-18pc with, ultra-fine wools most affected. The other feature has been the lack of action on the forwards when rallies do occur.

The forward market closed the week sporadically bid and offered. The exceptions 19 micron in late 2025 being bid 60 cents over spot at 1450 cnets, and in early 2026 up 100 cents over spot at 1500 cents.

The message is that growers need strong consistent signals to be heeded along the pipeline. Conversely, growers need to do their part by providing pointers themselves.

This week trade

November 2024 19 micron                            1425 cents                        5 tonnes

Source – Southern Aurora Markets.