AU Wool Prices Continue to Climb
March 10, 2017
The diverse nature of the Australian wool clip is becoming an important marketing factor as demand increases. As wool prices pushed further into record territory this week, Australian Wool Innovation said the variable wool types and descriptions produced is a key factor in price determination.
“Everything from 14 to 24 microns can be found in commercial quantity in the Merino section with extremely varying amounts of vegetable matter, staple strength ranging from 15 to 50nkt (Newtons per kilotex) and length ranges from 55 to 120mm, largely as a growing number of wool growers have chosen to change to 6 to 8 month shearing patterns,” said Australian Wool Exchange senior market analyst Lionel Plunkett. “Many buyers now comment that they are finding it increasingly difficult to build full container loads of the same type wool within a sale week out of the same center, making it too unpredictable to sell too far forward in fear of being unable to fulfill the contracted delivery point.”
The benchmark Eastern Market Indicator rose 22 cents this week to close at 1522 cents per kilogram clean, another record high. In U.S. dollar terms, the EMI fell three cents to US1145 c/kg with the Australian dollar 2 percent weaker against the US dollar, down US1.32 cents to AU75.24 cents.
Reprinted in part from Sheep Central