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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.

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