“What is the difference between an obstacle and an opportunity? Our attitude towards it. Every opportunity has a difficulty, and every difficulty has an opportunity”. J Sidlow Baxter
THE return of wool auctions after the Christmas recess began with optimism.
Over the break, superfine and crossbreds traded at cash in limited volume.
Forward bidding indicated a steady if not solid start with all indices — 17 micron through to 30 micron — bid flat to close out to June. This unfortunately couldn’t draw selling levels out with growers wanting to see the open.
The reality didn’t quite match the optimism, but with the Melbourne market regaining the losses of the final day pre-Christmas slip, it was enough for the bidders to lift levels in an endeavour to attract the attention of sellers.
Sellers were again not prepared to enter the market even with the subsequent easing of prices Wednesday. With Thursday’s auction market drifting lower again, the resolve of buyers was finally tested and bid levels retreated.
Buyers have set the new support levels. Demand signals remain challenging ahead of next week’s 55,000 plus bales.
A combination of timing and weather shocks across Australia’s wool production area meant growers missed the first hedging opportunity of the New Year. With the Chinese New Year approaching, the prospect for hedging will likely appear again over the next few weeks as we work through the larger auction volumes.
Current bid levels out to June 2024
17 micron – 1880 cents
18 micron – 1630 cents
19 micron – 1445 cents
20 micron – 1330 cents
21 micron – 1300 cents
28 micron – 345 cents
30 micron – 320 cents.
Source – Southern Aurora Markets.