Wool Market Update 16th February 2024
” History repeats itself, however in such shrewd camouflage that we never ever discover the similarity up until the damage is done”— Sydney J. Harris
The area and forward markets were both on repeat. The physical auction opened Tuesday with substantial falls in the superfine wools, weak point in the great wools and medium merinos holding their own. Crossbreds stay firm near the top of their narrow trading variety that has actually held because November. Valentine’s Day Wednesday did provide a little love to the auction market with 17.5, 19, 20 and 30-micron rate guides all publishing gains. The Eastern Market Indication (EMI) increased 1 cent, the very first favorable lead to 12 trading sessions. Not a lot to get delighted about however with the essential Asian markets still commemorating Lunar New Year need was restricted. Not remarkably the favorable market continued Thursday with Melbourne the only centre selling. The EMI increased 1 cent once again.
The forwards as soon as again sold light volumes. 15 loads traded Monday in March and April for 21.0 at 1320 which represented money. That was that for the week. Sellers stopped working to follow through with any additional volume, so purchasers pulled away awaiting instructions from the auction space. With that instructions unfavorable once again it was a little unexpected to see traders setting levels at par to money, albeit in restricted volumes and picked micron. Quotes are presently positioned from March to June for 18.5– 1475, 19.0– 1410, 19.5– 1355 and 20.0– 1330. Crossbreds are quote 28.0 at 360 and 30.0 at 340.
Ideally we will continue to discover a base here however the headwinds of bad need signals, the difficult worldwide financial conditions and discontent continue to affect supply chains and self-confidence.