Light at the end of the tunnel
Wool Market Update 30th August 2024
“There is a light at the end of the tunnel. Pity it might be a long tunnel”
Another tough week for the auction keeps the forward market becalmed. All wool qualities lost between 1.5 and 3% with tepid demand and a frustratingly weak USD not helping either the exporter, processor, or grower.
The 19.0 micron index hit its lowest point for almost four years in AUD terms at 1331ac. While in USD terms it seems the support at 900usc is yet to be tested.
The first signs of interest are coming through on forwards on both the buy and the sell. Buying interest for the latter part of 2025 and into 2026 in 19.0 has grown. November and December ate.re bid 1450 and the January interest at 1500 remains resolute. With cash at 1331 it gives food for thought.
The sell side is focused on the current spring through to autumn 2025. Late October, November and April are all offered 19.5 at 1405. These levels align with 2023/24 opening levels and those achieved during the season in rallies in November, December, January, April, and June.
Hopefully we will see further activity and interest next week.
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