By Robert Herrmann | Source: Riemann
Riemann Wool Forwards this week were indicative of the wool market sentiment. Exporters were prepared to buy forward at, or close to, the spot auction levels, while wool growers were looking for forward bids 20-30 cents above current market levels.
Trading focused on early 2016 in both the 18.5 & 21 MPG categories. There was renewed placement of GTC orders by wool brokers on behalf of grower clients in preparation for a hoped-for New Year rally.
It’s a positive note that Riemann attracted forward bids into early next year at or close to the current market prices. However, even with an optimistic outlook for 2016, it is worth producers considering locking away a portion of next year’s clip. In this scenario, GTC orders work well.
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