We need a little patience

Wool Market Update 5th September 2024

“How poor are they that have not patience. What wound did ever heal but by degrees?” — William Shakespeare

The spot auction limped along helped by a stronger USD. Modest gains were posted in the finer wools but medium merinos remain in the doldrums. The market remains guided by the macro-economic drivers which continue to disappoint.

The forwards are showing a little more activity on the bid side. The prompt window remains unloved with September still at a discount to cash. The further we move out the better the price curve looks. December 2024 is bid at a slight premium to cash (10 to15 cents) across the main 19.0 and 21.0 categories. For a further 12 months out (November2025 to January2026) the premium for the 19.0 index is 130 to 160 cents. Other activity in the spring and summer centred around 18.0 micron with October bid 1430 and December 1445 a slight discount to the current spot of 1458.

Next week auction of 32,000 bales should put no adverse pressure on market. Direction will again be influenced by external forces. Few seem positive with consumer confidence still low and demand signals weak.

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