THE only consensus on the current direction of the wool spot market is that there is no consensus.
The market remains even more sensitive on a daily basis to currencies fluctuations, offshore sentiment and demand signals.
The auction market opened weaker on the back of a weaker USD and continued export enquiry. A swing in the currency did little more than halt the decline with buyers still selective and sellers willing to accept the price with passed in rates only marginally higher. Crossbreds remain in demand.
The forwards were bid strongly off the steady close of last week, but sellers remain steadfast in their reluctance to even offer. The only trade for the week was July 19 microns at 1460 cents (23 cents over the closing cash 1437 cents). Bids dried up as the spot fell away Tuesday.
What interest that remains from the bid side continues to be pitched around cash. Highlights are 18.5 micron in February at 1540 cents (spot 1530 cents), 19 micron in March at 1450 cents, in June at 1460 cents and in July at 1450 cents (spot 1437 cents).
Crossbreds remain well bid out to June 2024 – 28 micron 370 cents (spot 358 cents), 30 micron 345 cents (cash 332 cents).
Bidding in the distant months is focused on the medium fine wools with 19 micron bid from March to July 2025 at 1470 cents. Probably the technical highlight of the week is bidding two years out in January 2026 with 19 micron bid at 1500 cents and 19.5 micron at 1450 cents.
Next week will probably provide another mixed bag. Hopefully we will see the return of healthy bidding in the second half of the season and levels from sellers.
Source – Southern Aurora Markets.