OPPORTUNITY IN DIFFICULTY

Courtesy of EP3

Wool Market Update 26th April 2024

“A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty” – Winston Churchill

An ambiguous week for the market week. The auction delivered the strongest single day rise in the Eastern Market Indicator (EMI) on Tuesday since before Christmas in both Australian and US Dollar terms. This was followed by underperforming day to close the week Wednesday.

The forwards once again did all their work Tuesday May trading at a premium to spot on the back of the auction momentum. This once again highlighted the value for sellers of having a target price on the screen. 19.0 micron traded at 1455 (+17 to the auction close), 19.5 at 1425 (+25 to close) and 21.0 micron at 1355 (+16 to auction close). The Tuesday rally took all the offers out of the nearby trading window (May to July). Wednesday’s indifferent market has left the buyers cautious. Sellers are gradually returning but volumes remain light, and bidders continue to dominate sellers.

It remains a difficult and challenging market for buyers, sellers, and analysts alike. Valuing certainty over the fear of lost opportunity remains the key message.