Brought to you by AG Concepts

Friday, November 09, 2018

Weekly Wool Forwards – week ending 9th November 2018

By Olivia Agar  |  Source: Mecardo, Riemann

Key points

2018-11-9 Wwf Fig 1

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.

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. 


Sign up for a FREE BASIC SUBSCRIPTION now to read this article.

Mecardo will send you its latest market analysis outlook delivered to your Inbox as it's published.  You will also receive one month Premium access for free.

You tell us what information you want to hear about, so you'll only be alerted to information that is relevant to you.

Learn more about Mecardo Sign Up Now!