Brought to you by AG Concepts

Friday, March 02, 2018

Weekly Wool Forwards – week ending 2nd March 2018

By Olivia Agar  |  Source: Ag Concepts, Riemann

Key points

2018-03-02 Wwf Fig 1

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.

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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