Why move forward with unnecessary risk on the future price of your wool? Even locking in a price to cover your input costs would surely stabilize your budgeting and reduce stress and panic selling decisions.

It may sound complex, It's not! In conjunction with your broker you   decide on 4 variables .

 

 

The Contract

· Maturity date (when wool is to be sold).

· Quantity of wool to be minimum priced (in kilograms clean).

· The anticipated quality (Micron category).

· The Indicator price (B) quoted by your broker.

 

 

Spot wool sale (auction).

Your wool is sold in the usual way at auction on the date specified.

· The actual quantity is determined.

· The average price for the wool is determined (D).

· The Micron Price Guide (MPG) is determined by AWEX (E).   

 

 

Finalisation

The quality adjustment (C) equals your average wool price (D )

minus the AWEX MPG (E) .This is then added to the indicator

price (B) to give your final contract price.

 

Your probably wondering how much it costs;

The price is factored into the indicator price you are quoted there are no more fees or charges.