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Wool Market Update 5th October

“Choose to be optimistic. It feels better” – Dalai Lama

A mixed bag for the auction market again this week with fine wools continuing to be out of favour, medium merino fleece and carding holding their ground and crossbreds getting dearer off their low base.

The forwards remain quiet. Exporters struggle to get significant forward volumes to warrant active or aggressive bidding. Technical analysts see nothing in the charts, particularly in the fine wools, to get them excited. Solid sales during the Nanjing Conference have lacked follow up. That said bidding has come through in the latter part of the week suggesting a base is trying to establish.

Tentative bidding flat to cash has been place across the first half of 2024 on 18.0 microns (1500) and 19.0 microns (1390). Bidding in the prompt months (October and November) remains at cash with buyers seeing little motivation to chase while the sellers remain out of sight. Passed in rates at auction would indicate that growers are reluctantly accepting current levels.

The only premiums in the market that remain are the balance of the 19.0-micron 2024/25 season strip that has been trading over the last month at 1470 (cash 1393). January 2025 and February 2025 traded leaving only the March to July to be covered.

We are expecting the same pattern to continue with little news on the horizon to inspire confidence. Technically fine wool (17.0 micron) charts remain troublesome and the medium (19.0 micron) chart again challenging it’s established support of 1400.