By Olivia Agar | Source: Ag Concepts, Riemann
The finer fibres saw majority of the price movement on the physical market this week which flowed through to activity in the Riemann forward market. A relatively stable week in medium and coarse fibre auctions led to a bit of a breather with just one minimum price option for 21-mpg contracted.
In the 19-mpg category a contract was struck for August 2017 at 1750¢, along with a range of 1695 – 1700¢ being dealt for October 2017. The medium fibre market had some activity early on in the week with a minimum price contract in the 21-micron class set for July 2017 expiry. This dealing was at a 40¢ premium for a strike price of 1450¢ meaning the grower has locked in a minimum of 1410¢ for his trade with opportunity to act on any potential upside movements in price should they occur.
For more detail on how minimum price contracts can be used to reduce risk on price volatility read the overview on Wool Minimum Price Contracts here.
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