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

Trade summary

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