By Matt Dalgleish | Source: ACA
A strong physical market has seen the forward revaluation curve steepen somewhat this week in the 21 micron contracts. However, a much more pronounced steepening of the forward curve was noted in the finer wool classes.
The forward market saw some action in the 19 and 21 micron categories this week and some deals struck for minimum price contracts in the 21 mpg.
March 17 contracts in the 19-mpg traded at 1730¢, April 2017 at 1660-70¢ and October 2017 ranged from 1580-1600¢. Trades as far out as September 2018 were also noted in the 19 mpg at 1520¢.
The 21-micron saw March 2017 range between 1430 – 1450¢ and April 2017 dealt at 1437¢. Two minimum price contracts for a March 2017 expiry were struck with a 1440¢ strike at 35¢, locking in a worst case rate for the grower at 1405¢ while still allowing them to participate in any potential upside in price movements.
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