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Friday, December 15, 2017

Weekly Wool Forwards – week ending 15th December 2017

By Mily Wilson  |  Source: Ag Concepts, Riemann

Key points

2017-12-15 Wwf Fig 1


The forward wool market seems to be building a grand finale as the year nears the end. This week, which marks the beginning of Xmas recess for the physical wool market, has been engaged with trades in all the three categories of micron: Fine, Medium and Xbred.

Within the fine micron category, deals occurred in 18, 18.5 and 19 microns.  18 micron was traded for April at 2255¢, May at 2195¢, June at 2160¢ and 2100¢ and October at 2060¢ for 2018. While 2019 saw a deal at 2000¢ in March for the same micron. On the other hand, 18.5 micron had only a single deal at 2150¢ for March 2018.

The trades in 19 micron are spread across the year 2018.  January saw a deal at 2025¢, April at 2025¢, May between 1980¢ and 2005¢, July at 2000¢, August at 1900¢ and 1885¢, September at 1820¢, October at 1860¢ and November at 1850¢. Another trade was for February 2019 at 1750¢.

21 micron from medium category saw deals ranging from 1680¢ to 1700¢ for March 2018, between 1605¢ and 1655¢ for April 2018, 1605¢ and 1630¢ for May 2018 and from 1620¢ to 1655¢ for June 2018 and February 2018 at 1705¢. While in 2019, February would trade at 1500¢ and August at 1400¢.

The crossbred types had a forward deal for 28 micron at 785¢ for February 2018.

The options market also saw some activity as the physical recess approaches. There were two minimum price contracts set to expire in May and June 2018 for 18 micron at a premium of 50¢ and 60¢ and a strike price of 2050¢ and 2000¢ respectively. Another contract was for 21 micron, where the grower chose the minimum price of 1500¢ at a premium of 50¢.This trade is set to expire in August 2018.

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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