By Matt Dalgleish | Source: AWEX
A quieter week in wool forwards hampered by a softer physical market on the back of a rampaging currency.
The strong surge in wool auction markets last week saw some grower orders filled for those happy to leave orders in place and with the benefit of hindsight some would be glad they held their nerve. Unfortunately, a few growers decided to cancel orders as the spot market surged in an attempt to finesse the price somewhat.
While this is an understandable reaction to get maximum value it does leave the grower open to the risk of missing the spikes to get set at levels they were originally comfortable with. A strategy of staggering sale orders across a range of prices and leaving them there even if the spot market surges can often result in an overall average price that is reasonably close to the highs.
Attempting to adjust levels, cancelling and re-submitting orders to try to pick an exact top is often fraught with disaster and leads to frustration, particularly when short term opportunities to get set are missed.
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