Learn, live and hope

 “Learn from yesterday, live for today, hope for tomorrow.”  – Albert Einstein

Another lacklustre week on both the auction and the forwards. Supply and demand seem to be in balance as the market stumbles into the recess. Most fine merino qualities lost ground even with the advantage of a strong USD that saw the cross-rate dip to its lowest point for 14 months.

The macro-economic situation and geopolitical conditions weigh heavily on consumers across with cost-of-living pressures in front of mind.

The forward market reflects this with sporadic trading when demand lifts and traders look for cover. This week’s trades were confined 19.5 microns. January traded at 1415 and May at 1425. This represented a 35 and 45 cent premium to the close of auction. Bidding for the New Year remains steady with premiums rising as we move through the year. Premiums start around 1 to 2% for the first quarter raising to 4% at years end. 2026 currently bid in small quantities at a 6% premium.

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