Mixed results

Wool Market Report 31st March 2023

Another week of mixed results for the spot market. Demand remains steady and supply varied. This was very evident with Fremantle markedly dearer over it’s two selling days with a selection that closely matched buyers demands. The eastern states, with a diverse selection, had assorted results with 19.0 and coarser merino wools a shade dearer but finer wools again losing ground.

The forward market continued to trade in light volume. The majority of the trading was again executed early in the week with the confidence on the buy side again focused on the 21.0-micron contract. Generally trading was limited to the nearby months with the only outlier being a July trade in 19.0 20 cents under cash. New season and 2024 bidding is almost non-existent. Sellers for the spring and beyond remain positioned at a premium to spot so it is unlikely that we will see any major activity further along the curve until very have a break from the current sideways movement in the spot.

The wool market is following the year-to-date trend for most agricultural commodities which has been a solid start followed by a February peak and tail off to into the end of the first quarter. We move into the last sale prior to the Easter recess with another 53,000 on offer. We are likelihood of large movement either way remains driven by the macro-economic and political environment. Sentiment at present is neutral at best.