Dark week

Wool Market Update 25th August

“But I know, somehow, that only when it is dark enough can you see the stars.” ― Martin Luther King, Jr.

Another dark week for the spot auction but there was one bright light. All merinos were affected dropping between 3 and 5%. The bearish outlook for the global economy, particularly our largest trading partner China, is weighing heavily on most commodity markets.

The forwards reflected the short-term outlook with the buyers starting the week bidding 1 to 2% under spot in the nearby months and seeing sellers weighting for direction. The only transaction early the week was on 21.0 contract which traded 20 under last weeks close. The spot rapidly pushed through the 1315 contract price with the index dropping 40 cents on open and  a further 30 Wednesday to close at 1260.

The only bright star on the horizon is the 2024/25 strip for 19.0 microns being bid 80 cents over the closing quote of 1400. It is bit July 2024 to June 2025 at 1480. While writing the report two of these back month’s traded as growers took a little insurance