WOOL forward market trading levels remained very tight on light volumes last week, mirroring global market confidence.
The spot market continued to hold small gains as the tight supply balanced out the lacklustre demand.
As the world copes with the new normal imposed on it, commodity markets continue to ebb and flow on waves of confidence and concern. The driver remains the confidence in the timing and depth of the re-opening recovery.
Exporters and processors alike have mixed views. Spot levels have held against a stronger Australian dollar that has appreciated against the US$ by 5 cents or 7.5 percent, but concerns around the ability of the market to hold under spring supplies remain in the back of the mind. Where wool in particular, and clothing in general, lie in the minds of consumers when the world re opens is the unanswerable question at this stage.
Expected trading levels
We anticipated trading levels next week to remain consistent with exporters looking to balance their books given growers opportunities even if limited in quantities.
19 micron 21 micron
June/July 1350 cents 1270 cents
Aug/Sept 1325 cents 1265 cents
Oct/Nov 1320 cents 1260 cents
Dec/Jan 1310 cents 1250 cents
Aug 19 micron 1325 cents 4 tonnes
Aug 21 micron 1265 cents 5 tonnes
October 19 micron 1325 cents 5 tonnes
October 21 micron 1255 cents 5 tonnes
December 18 micron 1425 cents 2.5 tonnes
December 21 micron 1250 cents 5 tonnes
January 19 micron 1310 cents 5 tonnes
Total 31.5 tonnes