By Olivia Agar | Source: Ag Concepts, Riemann
A fine week of forwards best describes the market activity this week. The physical auction found its base which sparked some movement on Riemann with forward and minimum price contracts being dealt.
All trades this week were in the 19 micron class. The auction market saw a drop mid-week then steadied out with a slight bounce for fine fibres, prompting growers to get some cover by acting on the forwards market. Forward contacts were dealt at 1800¢ for May 2017 and two at the same price for June 2017. Later in the week we also saw contracts trade at 1725¢ for August 2017 and another at 1710¢ for September 2017.
Minimum price contracts also seemed a popular choice with two dealings set again for the 19 micron. The first contract traded with a June 2017 expiry and hit a strike price of 1800¢ at a 50¢ premium. We also saw an option deal lock down a minimum price of 1770¢ for the grower with a premium of 55¢. This contract is due to expire in July 2017.
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