IT was a mixed bag for the physical auction and forward wool markets this week.
The one-day open cry auction achieved widely varied results, with the Sydney sale result a little easier across the board.
The Melbourne sale was dearer for the fine wools and generally unchanged in the broader qualities, while in Fremantle all qualities were significantly cheaper.
The forward markets provided some better levels for growers early in the week, with all months out to February 2021 bid above last week. More selling interest came in towards the week’s end with some trade sellers looking to balance their books.
Support levels for 19 micron contract in the spring/summer were tested two weeks ago with trades down to 1370 cents in the new year. The support above 1400 cents seems to be holding for the present time and may provide opportunities for growers as we move into the normal rostered quantities post-Easter.
The build-up of local stocks and concerns over the medium and longer term effects on demand should cap any rebounds. Any short-term price fluctuations to the up-side should be viewed as a chance to place some hedges.
Anticipated trading levels
19 micron 21 micron
April/May/June 1460 cents 1430 cents
July/Aug/Sept 1440 cents 1400 cents
Oct/Nov/Dec 1420 cents 1380 cents
Jan/Feb/Mar 1400 cents 1360 cents
September 19 micron 1435 cents 2 tonnes
November 19 micron 1435 cents 6 tonnes
November 21 micron 1365/1375 cents 15 tonnes
December 19 micron 1420/1430 cents 15 tonnes
December 21 micron 1350 cents 5 tonnes
Total 43 tonnes