Wool Prices Climb Higher
February 24, 2017
Solid demand boosted by new business continued to push Merino and crossbred wool prices higher at Australian auctions this week. Prices next week are expected to remain buoyant, with bidding this week dominated by traders, rather than the market’s large Chinese indent buyers.
The Eastern Market Indicator rose 9 cents to finish at 1449. The EMI in U.S.-dollar terms rose three cents to US1115 cents, with the $A-$US exchange rate at US76.92 cents.
The finer micron groups continue to appreciate at a faster rate than their broader cousins causing the price differentials between microns to further widen. The gap between an 18.0 and 19.0 micron is now out to nearly 200 cents, as is the gap between a 19.0 and 20.0 micron, meaning the difference between every micron point in these groups is 20 cents. Any price differences at the micron level are being largely driven by the quality of the selection. Better types continued to attract good support and maintained their large premiums compared to lower spec types.