Brought to you by AG Concepts

Friday, March 10, 2017

Weekly Wool Forwards – week ending 10th March

By Matt Dalgleish  |  Source: Ag Concepts, Riemann

Key points



A solid week of trading on the wool forward market this week with action continuing in the finer end of fibres and a minimum price contract traded for June 2017. Included in this market update is a chart of the current forward curve and also an indicative minimum price contract pricing sheet.

The 18.5-micron contract traded at 1870¢ for June 2017. However, most of the action this week was in the 19-micron class. June 2017 dealt at 1760¢, July saw action at 1725¢, August 2017 trading between 1710 – 1720¢ and September 2017 ranged between 1670-1710¢. October 2017 was dealing at 1695¢ in the 19 mpg, while into 2018 trades were noted at 1675¢ for January and 1650¢ for June.

A 19-mpg minimum price contract was struck at a 30¢ premium for a June 2017 maturity with a 1730 strike price – giving the grower a guaranteed worst case price of 1700¢. Please see the attached table for an indicative level on a variety of minimum price contract premiums in the 19 and 21 micron classes (see table below).

The 21-micron contract traded between 1440-1450¢ for July 2017, 1380¢ for September 2017 and 1375¢ for November 2017. For an approximate current level on the mid-point price in the forward market into early 2018 have a look at the attached forward curve for the 18.5, 19, 19.5 and 21 micron fleeces - figure 1.

Mecardo information is provided to assist in your marketing decisions. It contains a range of data and views on the current market. It is not intended to constitute advice for a specific purpose. Before taking any action in relation to information contained within this report, you should seek advice from a qualified professional. The information is obtained from a variety of sources and neither Mecardo nor Ag Concepts Advisory will be held liable for any loss or damage whatsoever that may arise from the use of information or for any error or mis-statement contained in this report. 


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