Fox & Lillie Rural hosted their Sheepvention breakfast seminar on Monday 5th August, presenting on various topics influencing the current wool market.
These topics included the continued pressure stemming from the China-US trade war and the increasing interest in developing long term wool supply contracts which would give growers certainty on pricing, and wool buyers certainty on supply.
Fox & Lillie wool trader Aaron Shaw said the company believed the forward trading of wool would become a bigger part of its business.
“Our wool buying clients are genuinely concerned about supply and at the moment these prices are affordable to the downstream market,” he said.
“Our clients are looking at, we want more certainty, because they have seen the volatility, they’ve seen the 16.5 (micron) hit $32, they’ve seen 28 micron hit $13 – they want a bit more stability.
“So we believe forwards are going to be a bigger part of the market.”
Full article found here – Sheep Central: Wool exporter Fox & Lillie investigates supply contracts.