THE auction market closed irregularly this week, with exporters filling orders prior to the mid-year break, but unwilling to stock at these levels.
This attitude filtered into the forwards, with interest focused on the front months.
The 19 micron index traded at 1755 cents, which is near the peak traded forward level. The 21 micron index again traded strongly in August, with all traded above the record 1500-cent level set over the last two weeks.
It will be critical to see if interest can be maintained during the recess, as exporters weigh up the likely impact to prices and we move into the higher supply spring. Currently exporters are pricing a 2 percent discount into August, a 5pc discount into September and 7-8pc as we move towards the end of the year.
It is important to note that the discount off the current spot would still place prices at the highest spring levels ever.
Anticipated forward levels next week
August 19 micron 1750-1800 cents 21 micron 1485-1510 cents
September 19 micron 1720-1755 cents 21 micron 1420-1440 cents
October 19 micron 1690-1720 cents 21 micron 1400-1420 cents
Mid August 21 micron 1510/1525 cents 25 tonnes
End August 21 micron 1505 cents 10 tonnes
End September 19 micron 1755 cents 5 tonnes
Total 40 tons
Source: Southern Aurora Wool.