Southern Aurora Markets partner Mike Avery.

“When one door closes, another door opens; but we so often look so long and so regretfully upon the closed door, that we do not see the ones which open for us. – Alexander Graham Bell

A COMBINATION of a strong Australian dollar and a continuation of soft demand saw the wool spot market give back some of the hard-fought gains of the last three weeks.

The negative price action at auctions caught most by surprise as limited supply this week, with only the east coast selling centres operating, was expected to steady the market.

Prices fell across all Merino types by 1 to 2 percent. Crossbreds and cardings remained steady.

The forward market started the week solidly bid by traders expecting a continuation of the positive market and looking to cover their risk. Spring traded at a 1pc premium to cash with the 19 micron contract executed at 1460 cents and 19.5 micron at 1420 cents.

The weak start to the auction series saw 17 micron traded for late June at 1735 cents before traders withdrew bids to see how the rest of the week would pan out.

Next week has 40,000 bales rostered and forward buyers are cautious, waiting to see the reaction offshore to the pull back in prices.

We are likely to see continued ebb and flow in price levels as we navigate the last five weeks of the current season. Forward price opportunities are likely to arise for the Spring and early Summer as traders look to hedge their risk.

Levels for late 2025 and 2026 remain at a 6pc premium to cash at 1500 cents for 19 microns.

This week’s trades

17 micron June                                                  1735 cents                           5 tonnes

19 micron October                                           1460 cents                           5 tonnes

19.5 micron October                                       1420 cents                        10 tonnes

Total 20 tonnes

Source – Southern Aurora Markets.