WOOL forward markets started the week strongly and held up relatively well as the auction lost ground.

The auction market finally sought relief this week after unprecedented rises through May.

The 19 micron index rallied 225 cents (10.7 percent), the 21 micron index rose 283 cents (14pc) and the EMI 181 cents (9.8 percent).

New forward market highs were set early in the week, with trades into the late spring at 2100 cents for 19 micron and 1925 cents for 21 micron. New Year hedging also peaked, with April trading for 19 micron at 2000 cents and for 21 micron at 1910 cents.

Although the end of the week was more subdued opportunities should still be available for growers looking to mitigate risk for next season clip.

Forwards closed Thursday night still showing 19 micron bid at 2100 cents through the spring down to 1950 cents in December. The auction market on 21 microns has held firm under diminishing supply to the end of the season. This has left spring levels at a strong basis to the finer wools with the August bid on close at 2050 cents, September at 2000 cents, October at 1925 cents and November at 1900 cents. Although a discount to cash, these hedge levels represent significant premiums over last spring’s AWEX auction average from September to November on both fine and medium wools.

19 micron             1900 cents

21 micron             1585 cents

Anticipated levels next week

Month

Month                                 19 micron            21 micron

June                                     2200 cents          2160 cents

July                                      2150 cents          2100 cents

Aug                                      2100 cents          2050 cents

Sept                                     2100 cents          2010 cents

Oct                                       2050 cents          1950 cents

Nov                                      2000 cents          1900 cents

Dec                                      1950 cents          1900 cents

Trade summary

June                      19 micron            2300 cents                            5 tonnes

June                      21 micron            2170/2260 cents               22 tonnes

July                       21 micron            2190 cents                            5 tonnes

August                  18.5 micron        2250 cents                            5 tonnes

August                  19 micron             2200/2220 cents               9 tonnes

August                  21 micron             2025/2100 cents              12.5 tonnes

September          21 micron             2025/2040 cents              14 tonnes

October               19 micron             2100 cents                          5 tonnes

November           21 micron             1925 cents                          2.5 tonnes

April 2019            19 micron            2000 cents                          2.5 tonnes

April 2019            21 micron            1910 cents                        10 tonnes

Total 95 tonnes