Don’t stay down

“Inside of a ring or out, ain’t nothing wrong with going down. It’s staying down that’s wrong.” – Muhammad Ali

The auction market showed some resilience this week to the noise created offshore. Most micron held there own as currency markets remained on their rollercoaster ride. Geopolitical tensions continue to stifle confidence as the on again of again tariff goes into another ninety-day hiatus.

Forward markets in most commodities have lost a bit of steam. Whilst the announcement of temporary moratorium was initially well received uncertainty remains as traders reassess long term demand. The wool forwards tended to buck the trend with buyers returning to the spring. Volumes continue to be light but 19.0 and 21.0 traded from July to September predominately above spot levels. The nearby months remain somewhat neglected with sellers still looking for levels that were available prior to the “Liberation Day” tariff bombshell in early May.

Spring in still providing opportunities for hedging at premium to cash. Currently 19.0 is bid at 1540 for September (Cash 1502) and 21.0 at 1430 for October (cash 1407).

Traded this week.

19.0     July     1495/1525                   7.5t

19.0     Aug     1525                            5t

21.0     Aug     1420                            2t

21.0     Sept     1420/1440                   15t

Total 29.5

This report is provided by Southern Aurora Markets, please subscribe to their service or contact them for a chat about any price risk management needs in fibre markets.