Australian Wool Markets Continue to Rise
August 18, 2017
The Australian wool market experienced dramatic rises this week as buyers had to fight hard to secure their share of a limited selection. Demand seemed to outstrip supply, causing all types and descriptions to experience large gains.
The tone was set on the first day from the opening hammer in the Eastern states, with prices across the entire merino spectrum increasing by 40 to 50 cents from the outset. The benchmark Eastern Market Indicator rose by a significant 46 cents, the largest daily increase in more than two years.
The EMI is now at its highest ever published level. Notably, the Micron Price Guides for 22.0 and 23.0 micron are now at record highs. The skirting market followed a similar path to the fleece. Prices generally increased by 30 to 40 cents for the week. The crossbred sector also experienced sharp rises this week. Prices generally rose by 50 to 80 cents, and as in recent sales, it was the better prepared lines that enjoyed the biggest increases in price.
A limited selection of oddments was the only sector to not record significant rises. Most types and descriptions were firm to seller’s favor, resulting in the three carding indicators rising by an average of 2 cents.
In another encouraging sign for American wool producers, the Australian dollar continues to gain strength against the U.S. dollar. It’s 3 percent higher since this time a year ago at $79.36.