WOOL forward markets moved in line with the spot auction last week, but are expected to stagnate prior to auctions starting this week.
Spring levels on all micron rose 60 to 80 cents. The key 21 micron index traded solidly; breaking the 2000 cent barrier for September and maintained interest out into the New Year, with November and December trading at 1950 cents and February 2019 at 1910 cents. The 19 micron index traded out to August 2019 with June at 1955 cents and August at 1950 cents.
Interest waned a little as the week progressed as exporters assessed the increasing risk. We expect forward levels to be stagnant prior to the auction opening next week as exporters look for confirmation of offshore business into the spring.
Where to now, is the question on everyone’s mind. With high wool prices now a topic of mainstream media, the conservation has moved to how downstream processors and consumers will absorb the current rise. The continuing dry conditions will cap any concern in over supply. The extent of demand destruction at these levels will be the key to forecasting the likely trend into the spring and into 2019.
Anticipated levels next week
Month 19 micron 21 micron
June 2240 cents 2185 cents
July 2200 cents 2155 cents
Aug 2200 cents 2050 cents
Sept 2070 cents 2010 cents
Oct 2040 cents 1980 cents
Nov 2000 cents 1960 cents
Dec 1980 cents 1950 cents
Trade summary
June 21 micron 2185 cents 15 tonnes
July 21 micron 2155 cents 5 tonnes
August 18.5 micron 2245/2275 cents 6.5 tonnes
September 21 micron 1965/2005 cents 17.5 tonnes
October 18 micron 2250 cents 2 tonnes
October 19 micron 2005 cents 2.5 tonnes
October 21 micron 1975 cents 8 tonnes
November 21 micron 1900/1950 cents 5 tonnes
December 17 micron 2500 cents 5 tonnes
December 18 micron 2225 cents 2.5 tonnes
December 21 micron 1950 cents 2.5 tonnes
Feb 2019 21 micron 1910 cents 5 tonnes
June 2019 19 micron 1955 cents 12 tonnes
Aug 2019 19 micron 1950 cents 5 tonnes
Total 93.5 tonnes
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