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Friday, May 05, 2017

Weekly Wool Forwards – week ending 5th May

By Mily Wilson  |  Source: Ag Concepts, Riemann

Key points

Woolfwd1

The forward wool market was bustling with a lot of activity happening over the week. Trades in 19 and 21 micron wool categories have surged since last week. The market saw seven forward trades in 19 micron, thirteen in 21 microns and only two in 22 micron classes

January, February and August of 2018 saw trades at 1680¢, 1675¢ and 1650¢ in 19 micron, respectively.  However for 2017,  the 19 micron class saw deals at 1920¢ in June, 1810¢ in October and between 1800¢ and 1850¢ in August.

A closer look into the 21 micron class reveals that most of the trades in this category were dealt for October 2017, ranging between 1425¢ and 1430¢. With seven trades happening in October 2017, rest of the trades are for May, August and September 2017.  May 2017 traded at 1500¢, September 2017 at 1420¢ and 1430¢ and August 2017 saw two trades at 1420¢ and one at 1430¢. The 22 micron wool was traded at 1420¢ and 1415¢ for June 2017. 

With so much activity in the forward market, the options market also geared up. Two minimum price contracts (MPC) were dealt for the 18.5 micron at a premium of 35¢ and 40¢ and a strike price of 2035¢ and 2000¢, respectively. Another contract was for 19 micron, where the grower set the minimum price at 1725¢ with a premium of 40¢.This trade is set to expire in September 2017. And finally, a 21 micron MPC dealt at a strike price of 1480¢ to be matured in July 2017 and premium of 35¢.

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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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