Volatility continues for wool
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.