IT was a busy and challenging week for all participants across the wool pipeline last week.
Growers received excellent returns for their wool as exporters and processors pushed prices for Merino types more than 100 cents over the Christmas close. The forward markets traded briskly as exporters looked to cover early autumn sales and build stocks into the new season.
Supply concerns and solid demand are the short-term drivers. Buyers will be looking to some stabilisation of prices at these new levels. Rapid price movements usually lead to demand strangulation. Pleasingly, the rise stimulated activity into the spring and next year, delivering some historically high hedging levels. This week’s sales will test the resolve of buyers and sellers. We expect a volatile time ahead for the auction and the forwards.
Jan 21 micron 1455 cents 2 tonnes
Feb 19 micron 1635 cents 2.5 tonnes
Feb 21 micron 1425/45/55 cents 7 tonnes
March 18.5 micron 1720 cents 2.5 tonnes
March 19 micron 1635/1660 cents 5 tonnes
March 21 micron 1425/1450 cents 21 tonnes
April 21 micron 1420/1442 cents 24.5 tonnes
May 21 micron 1405/1440 cents 43 tonnes
June 21 micron 1419/1420 cents 10 tonnes
Sept 19 micron 1580 cents 2.5 tonnes
Nov 21 micron 1350 cents 7 tonnes
Jan 2018 19 micron 1575 cents 5 tonnes
Mar 2018 19 micron 1550 cents 2.5 tonnes
Total 135.5 tonnes.
Source: Southern Aurora Wool.