By Matt Dalgleish | Source: Riemann
Some excitement for the wool forward market on Riemann this week as the platform saw its first minimum price wool contract trade this week for an April 2017 maturity, which made up for the somewhat lower volumes in regular forward contract trades.
October 2016 saw a trade at 1400¢/kg clean in the regular forward market.
The minimum price contract for an April 2017 maturity saw a 1350¢ strike price locked in for a 35¢ premium. This means the grower has a guaranteed minimum price of 1315¢ (strike price less the premium paid) but can still participate if the wool market is higher in April 2017.
To learn more about minimum price wool contracts, see the link here.
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