Wool warriors, or wool worriers?

Wool Market Update 13th September 2024

“The two most powerful warriors are patience and time.”— Leo Tolstoy

Another steady week for the auction market. Helped by stronger currencies (CNY/USD) all micron groups rose around one percent. Competition was widespread and the passed in rate remains low. Demand continues to be muted though improving local prices help to a degree with confidence.

The forward market remains relatively stagnant trading 19.5 micron flat to cash for October. Other microns stay well bid to Christmas but so far fail to attract interest from sellers at these historically low levels. New Year bidding is restricted at the moment to the fourth quarter. Prices are bid at a seven percent premium for November and December 2025 at 1450 for 19.0 microns. January 2026 is bid 1500.

Confidence and positive market signals are both hard to come by at present. Global economic conditions are sluggish at best. Opportunities in the forwards are likely to come when stimulated by currency and dips in supply. Time and patience remain essential.

This report is provided by Southern Aurora Markets, please subscribe to their service or contact them for a chat about any price risk management needs in fibre markets.