By Olivia Agar | Source: Ag Concepts, Riemann
Strong prices at auction and grower optimism for the coming months has left the forwards market dry with only two trades this week. This was despite the fact that there were bids edging closer to market value, ripe for the taking.
Growers weren’t looking to take any protection out far into the season. A fine fibre trade on 18 micron wool dealt this week for March 2018 at 2330¢. The only other contract that traded was for 21 micron at a strike price of 1900¢ for March 2018 also.
The forwards market has received some very attractive bids offered right out to Spring. Buyers are clearly trying to meet the market, however the lack of interest from growers suggests strong confidence that the physical market will hold or rise in the coming months. Now is a good opportunity for growers to manage their risk by getting some protection against potential downside.
There were no minimum price contracts this week.
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