Volatil­ity con­tin­ues for wool

Warwick Daily News - South West Queensland Rural Weekly - - News - — Mike Avery South­ern Aurora Mar­kets

VOLATIL­ITY con­tin­ued last week for the auc­tion and for­ward mar­kets.

On the for­ward mar­ket, the week opened with trade sell­ing dom­i­nant, in­di­cat­ing that over­seas buy­ers were yet to come back to the ta­ble and a sup­port level was yet to be found.

Sen­ti­ment im­proved as the week pro­gressed, with buy­ers hold­ing lev­els and sell­ers less ag­gres­sive.

This played out into the spot auc­tion, which closed firmer, and most qual­i­ties fin­ished the week un­changed, re­trac­ing the losses of Wed­nes­day.

For­ward mar­ket vol­umes were solid with 70 tonnes traded, with more in­ter­est in the nearby months.

19.0 mi­cron con­tin­ued to trade out in Novem­ber and De­cem­ber 2019.

Bid­ding into the early new year is now com­ing through and likely to de­liv­ery rea­son­able hedg­ing op­por­tu­ni­ties as we head into the Christ­mas re­cess.

The cur­rent un­cer­tainty and volatil­ity high­lights the value of hedg­ing strate­gies that sets price tar­gets to take ad­van­tage of short-term ral­lies.

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