Faithful optimism

“Optimism is the faith that leads to achievement. Nothing can be done without hope and confidence,” – Helen Keller

Both the auction and the forward markets continued their slow grind. Tight supply somewhat limiting the downward pressure on the auction market with merinos slipping slightly and crossbreds dearer. Demand continues to be muted with little positive to be gleaned from either the economic or political rhetoric.

Forwards provided the little solace there was to be had. Bidding was light but at attractive prices to spot. The only trade for the week came in July with 19.5 microns trading at a 27-cent premium to cash at 1510. The fall in the merinos prices Wednesday saw short term interest disappear for the moment. Spring and early Summer continue to be well supported by buyers although volumes remain limited. The 19-micron contract is bid 10 to 20 cents over cash for September and October. The 21- micron contact relatively flat to cash out to December. Interest from sellers remains tepid to say the least.

There is little indication that much will change in the outside influences as the market heads into the season recess. Faith that the long-term eco-credentials and virtues of the fibre will see through the headwinds.

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