Wool Market Reports

Wool market ‘a mixed bag’ for physical auctions and forwards

Michael Avery, Southern Aurora Markets partner, April 17, 2020

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

Trade summary

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



Your email address will not be published. Required fields are marked *

Your comment will not appear until it has been moderated.
Contributions that contravene our Comments Policy will not be published.


Get Sheep Central's news headlines emailed to you -