No consensus

Wool Market Update 25th January 2024

The only consensus on the current direction of the spot market is that there is no consensus. The market remains even more sensitive on a daily basis to currencies fluctuations, offshore sentiment and demand signals. The market opened weaker on the back of a weaker USD and continued export inquiry. A swing in the currency did little more than halt the decline with buyers still selective and sellers willing to accept the price with passed in rates only marginally higher. Crossbreds remain in demand.

The forwards were bid strongly off the steady close of last week but sellers remain steadfast in their reluctance to even offer. The only trade for the week was July 19.0 microns at 1460 (23 cents over the closing cash 1437). Bids dried up as the spot fell away Tuesday. What interest that remains from the bid side continues to be pitched around cash. Highlights are 18.5 February at 1540 (spot 1530), 19.0 March 1450, June 1460, July 1450 (spot 1437).

Crossbreds remain well bid out to June 2024. 28.0 370 (spot 358), 30.0 345 (cash 332)

Bidding in the distant months is focused on the medium fine wools 19.0 bid March to July 2025 at 1470. Probably the technical highlight of the week is bidding two years out in January 2026 with 19.0 micron bid 1500 and 19.5-micron 1450.

Next week will probably provide another mixed bag. Hopefully we will see the return of healthy bidding in the second half of the season and levels from sellers.