AU Wool Prices Peak at 1500 Cents
March 3, 2017
Wool prices surged higher into record territory this week with the Australian Wool Exchange Eastern Market Indicator lifting 51 cents to peak at 1500c/kg clean. The EMI has risen seven out of eight selling weeks in 2017 making it the best start to a calendar year since 2011. The Micron Price Guides in the 18.5 to 20-micron range are all at record levels for the AWEX series (since 1995) but still have some distance to go before eclipsing the record levels set in 1988.
With the Australian-to-U.S. dollar exchange rate at US76.56 cents, the EMI in U.S. dollar-terms rose 34 cents to 1148 cents.
Australian Wool Innovation said demand has been steadily building during the past two years, increasing the general wool price in Australian dollar-terms by 407c/kg clean and in U.S. dollar-terms by 298c/kg clean or 37 percent and 35 percent, respectively.
Techwool Trading Export Manager Josh Lamb said, “This could be a new era for the industry – I’m not saying these levels will be surpassed considerably, but you can certainly assume that up or down 5 percent on these levels for the next few years is not out of the realm of possibility. This could be how it is going to be for the next two to three years.”