Tentatively positive
Wool Market Update 11th October 2024
A combination of a stronger USD and a lift in spot demand saw prices at auction lift of 2 to 4 per cent this week with the finer wools most affected. Momentum was at its strongest mid-week. A boost in offshore activity is still required for the market to frank a change in direction. The macro-economic headwinds are still in place.
The forward market remained relatively quiet. Prices in the final quarter 2024 improved and growers were able to obtain cover flat to cash. Understandably both buyer and seller are a little hesitant as rallies throughout the year have tended to be short lived. Buyers for Spring 2025 and onwards remain at a premium to cash but unchanged from last week. September 2025 traded 1440 for 19.0 micron.
Growers will likely have opportunity to hedge around current spot levels out to years end prior to next week’s auction series. Maintenance of momentum and improved sentiment will be key to enhanced bidding into the new year. The 42,000 bales on offer next will be the test the stamina the current upturn.
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