By Matt Dalgleish | Source: Riemann, AG concepts
This week Riemann traded solid volumes, however most of the action was in the 19 MPG tenor, a big change from volume traded over the past 4 – 5 years which has been 21 MPG focused.
This is reflecting where buyers now have their concern; so perhaps it would be prudent for wool growers to take a contrarian approach and focus on 21 MPG contracts to protect future production. This is a good time to discuss with either your broker or Mecardo the type and tenor of forward contracts; high prices and potential further upside for fine wool making an interesting case for trading Basis, something the good grain traders regularly exploit to advantage and worth considering for the next wool clip.
The 19 mpg traded this week as follows:
March 2017 - 1730 to 1750¢
April 2017 1700 to 1730¢
May 2017 traded a 1675 strike minimum price contract at 35¢
April 2018 at 1600¢
The 21 mincron saw trades at 1350¢ for Nov 2017 and 1400 to 1405¢ for April 2017
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