Slow grind

Still the slow grind. Tight supply continues to limit the downward pressure on the auction market. Merino Micron Price Guides tended to realign. Finer microns which had slipped over the last few weeks were steady, medium microns weaker. Crossbreds were dearer again this week. Exporters report slightly better demand signals but this has yet to translate into significant firm orders. Offshore political tensions continue to effect global consumer confidence.

The forward market followed the auction. Premiums in the spring saw 19.0 micron trade 33 over closing cash before pulling back slightly. Bidding was gain light but at a premium  to spot. The only trade for the week came in September with 19.0 microns trading. The fall in the merinos prices Wednesday saw short term interest disappear for the moment. Spring and early Summer continue to be well supported by buyers although volumes remain limited. The 19-micron contract is still bid 10 over spot for October. The 21- micron contact is bid 18 over for December. Sellers remain generally on the fence,

Hopefully the welcome rains in Southern Australia are a precursor to a positive close to the wool auction season.

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