To: All Members
No: 16/00

 

Wool Futures Contract - Amendments to Delivery Procedures

Members are advised that AWEX has amended its procedures for the appraisal of wool lots suitable for futures deliveries.

AWEX appraises wool for futures deliveries to comply with GW.7 and the section of GW.2 that refers to good top making style and good colour in the Greasy Wool Futures By-Laws. The amended AWEX appraisal procedures comply with requirements of the Greasy Wool By-Laws.

In the past AWEX appraisal procedures involved 3 wool appraisals: Wool Broker appraisals, AWEX appraisal audit and a second specific AWEX appraisal. The second AWEX appraisal was conducted when the wool was to be admitted into the SFE deliverable stock. This second AWEX appraisal was originally introduced when AWEX only audited 30-40% of broker appraisals. However, AWEX now audit 100% of broker appraisals and a specific post sale AWEX appraisal is no longer required. AWEX will now identify eligible lots prior to audit and confirm eligibility during the audit of appraisals.

The advantages of removing the second AWEX appraisal from the futures delivery appraisal procedures include:

Buyers being able to identify eligible lots prior to purchase, through the use of the AWEX audit result.

Streamlining the process of obtaining Appraisal Certificates on wool for futures delivery.

The amendments to the AWEX appraisal procedures have come into effect 1 January 2000 and will apply for the February 2000 Greasy Wool Futures contract onwards.

Please contact the undersigned on (02) 9256 0493 if you have any queries regarding these amendments.

 

 Margaret Willett

Senior Research Analyst; Commodities.

17/01/2000