By Robert Herrmann | Source: Riemann
The wool market got “Cup” fever a week early, with the market rally spread across the board and dragging the Riemann Wool Forward market higher also. While almost 40,000 bales were sold in the auction, buyers increased their bidding limits on each day of sales.
On Riemann, contract trading was across 18.5 and 21 MPGs, with growers able to forward sell as far forward as October 2016.
Where it was once only rare that contracts traded above 1300¢, it now is commonplace.
Over the past 10 years the 90th percentile level for the 19 MPG has been 1400¢/kg clean, while it has been 1300¢ for the more actively traded 21 MPG.
This means that, over the past 10 years, the market has traded below these levels for 90% of the time: whichever way you look at it, the wool market is currently at historical highs.
Table 1. Riemann Wool Forwards - 2 month trade summary
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