By Olivia Agar | Source: Mecardo, Riemann
It seems the consecutive weeks of a price declines in the spot market finally reached its point of concern and has shaken some urgency into the forwards market. 17 contracts traded in total, with growers getting cover out to December 2019.
19 micron fibres traded at 1,990¢ for May 2019. The rest of the contracts were looking much further ahead. November and December 19 saw multiple deals at 1,970¢-1,980¢.
21 micron wool traded at 2,030¢ for November 2018. While January, February and March 2019 all saw contracts at 1,980¢. 21 micron also traded at 1,910¢ for May and 1,925¢ for October 2019
A 28 micron contract also traded for February at 740¢.
Interestingly, despite the falling physical market, the forward curve is still sitting flat well into next year. Current prices for mid to late 2019 are attractive when compared to historical levels. This gives an indication that buyers expect supply concerns.
No minimum price contracts were traded this week.
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