Brought to you by AG Concepts

Friday, November 10, 2017

Weekly Wool Forwards – week ending 10th November 2017

By Olivia Agar  |  Source: Ag Concepts, Riemann

Key points

2017-11-10 Wwf Ig 1


The forwards market shot off like a horse out of the gates this week with a cracking 26 forwards deals traded, along with 6 minimum price contracts. Most trades were in the fine-mid fibre categories, but surprisingly a few crossbreds made the track.

In the fine wools, 18 micron traded at both 2135¢ and 2150¢ for March 18, and 2105¢ for June 18. Wools of 18.5 micron traded at 2100¢ for February, 2,040¢ for March and 2,000¢ for May 2018.Trades for 19 micron wool spread well into next year. Deals were struck at 2,000¢ for December 2017, 1975¢ for January 2018, 1905¢ for March, 1880¢ for June, 1870¢ for July, 1760¢ for August and 1710¢ for October.

Contracts for 21 micron wool were agreed at 1650¢ for November and December 2017, 1605¢ for February 2018 and 1545¢ for May. Prices ranged from 1520¢ to 1540¢ for June 2018, and July received between 1500¢ to 1520¢, with an August 2018 deal also at 1,500¢.

Coarse 28 micron fibre deals traded at 830¢ for November and 800¢ for December 2017.

Minimum price contracts on 18 micron wool reached a strike price of 2000¢ at potential 60¢ premiums for maturity dates of April and May 2018, while another for September locked onto a 95¢ premium. A 19 micron option was also taken out for April with a premium of 40¢. 21 micron fibres minimum contracts dealt for February and August expiry’s, at strike prices of 1520¢ and 1500¢ respectively.

Unusually the wool forward market has moved to contango out to the end of the season suggesting that exporter demand to the year end is likely to remain robust.

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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