THE volatile nature of the market played out in the physical and forward sectors this week on the return from the Easter recess.
The weight of wool on the market saw prices retract on opening, but steady by the week’s end. The forward markets remained firm with support levels into the end of the season unchanged.
The 19.0 micron index created new highs, trading at 1870 and 1890 cents. Spring levels ignored the fall in the spot market and traded above the most recent support in both 19 and 21 micron indexes.
The key 1400 level was reached for September and October for 21 micron wool, but buyers were hesitant due to the volatile nature of the market. Implied volatility is running at over 23 percent — the highest for nine months — and has more than doubled since January. This could bring opportunities in the forward markets as exporters look to keep positions tight in this volatile environment.
May 19 micron 1890 cents 3 tonnes
June 19 micron 1870 cents 3 tonnes
Aug 19 micron 1780/90 cents 13 tonnes
Aug 21 micron 1415 cents 4 tonnes
Sept 19 micron 1755/65 cents 12 tonnes
Sept 21 micron 1390/1400 cents 7.5 tonnes
Oct 21 micron 1400 cents 8.5 tonnes
Total 51 tonnes