Gaining ground
Wool Market Update 17th April 2024
A better week for the auction market with a solid opening on Tuesday and most microns gaining ground on Wednesday. This action injected some confidence on the forward markets with bidding returning to the nearby months at a slight discount to spot.
The market remains in a tight trading range with just in time buying dominating the market direction. Fine microns 17.0 to 19.0 remain towards the bottom of their season range. The broader merinos, crossbreds and cardings all sitting around their seasonal averages.
The forward markets remain frustratingly illiquid. Bidding dominates along the strip in the nearby and as far out as June 2026. Volumes are light but more importantly are non-existent in the 2024/25 season where growers particularly are looking for guidance. With processors predominately buying hand to mouth the need to hedge their longer positions is not there. There will need to be change in confidence and demand to deliver growers correct signals for the new season.
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