IT was a quiet week on the forward wool market as buyers lifted levels into the New Year, but were unable to attract too much interest from the growers.
Bidding remains slightly under spot levels, reflecting the difficulty of buyers to attract significant offshore interest ahead of the Christmas recess. The exception is on the crossbreds, where bidding on the 28 micron group is showing a 2 percent premium to spot levels out to June 2019.
The Merinos are bid under cash, but this still represents the 75 to 85 percentile for the last two years. The 19 micron bidding is at 2200 cents in January out to 2155 cents in June, with 21 micron at 2110 cents in January out to 2050 cents in June.
We expect pre-Christmas activity to be light, but with opportunities there for growers to hedge at historically high levels.
19 micron May 2110/2155 cents 10 tonnes
19 micron June 2125 cents 5 tonnes
20 micron Feb 2155 cents 5 tonnes
28 micron Feb 860 cents 2.5 tonnes
Total 20.5 tonnes
Projected forward trading levels for next week
Month 19.0 micron c/kg 21 micron c/kg
Jan 2200 2110
Feb 2180 2090
March 2160 2090
Apr/May 2155 2060
June/July 2155 2050
Aug/Sept 2000 1930
Oct/Dec 1950 1900