Testing week

Wool Market Report 24 March 2023

Another testing week for the spot market. Whilst expectations were high at the start of the week with solid demand signals. Tuesday’s opening left most disheartened. Logistical and cashflow problems remain the exporters major concerns. The balance of the week played out with mixed results. Wools finer than 19.0 microns continued to struggle, while 19.0 and broader merino qualities looked to find a base and finished a little dearer on Thursday.

This activity translated into slightly more interest on the forward market, but volumes were again disappointing. Trading was once again limited to the nearby months. Prices improved on last week with May executed 10 to 20 cents above the closing cash.

Next week will likely test buyers resolve again with almost 50,000 bales rostered. Finance lines will remaining tight as costs increase and congestion along the delivery pipeline leaves cycle times frustratingly longer than normal. Uncertainty and caution still dominant the macro view but support levels on the medium wools look to be holding. Another week of solid prices in the spot will hopefully bring opportunity again for both medium- and longer-term hedgers with activity picking up in the spring and into 2024.