Southern Aurora Markets partner Mike Avery.

“Inside of a ring or out, ain’t nothing wrong with going down. It’s staying down that’s wrong.” – Muhammad Ali.

The wool auction market showed some resilience this week to the noise created offshore.

Most micron held their own as currency markets remained on their rollercoaster ride.

Geopolitical tensions continue to stifle confidence as the on again off again tariff goes into another 90-day hiatus.

Forward markets in most commodities have lost a bit of steam. While the announcement of temporary moratorium was initially well received, uncertainty remains as traders reassess long term demand. The wool forwards tended to buck the trend, with buyers returning to the spring. Volumes continue to be light, but 19 and 21 micron traded from July to September predominately above spot levels. The nearby months remain somewhat neglected with sellers still looking for levels that were available prior to the ‘Liberation Day’ tariff bombshell in early May.

Spring in still providing opportunities for hedging at premium to cash. Currently 19 micron is bid at 1540 cents for September (cash 1502 cents) and 21 micron at 1430 cents for October (cash 1407 cents).

Traded this week

19 micron July                                                    1495/1525 cents                               7.5 tonnes

19 micron August                                               1525 cents                                         5 tonnes

21 micron August                                               1420 cents                                         2 tonnes

21 micron September                                        1420/1440 cents                               15 tonnes

Total 29.5 tonnes

Source – Southern Aurora Markets.