Australian Wool’s EMI Tops 2,000 for First Time
June 1, 2018
The meteoric rise of the Australian Wool Market continued in Week 48. In what has almost become the norm in recent times, prices were again driven sharply upward. Quantities continue to decline as the season heads into the traditional quiet time of year, forcing buyers to work hard to secure their share of the reduced offering.
This week, 30,439 bales were offered to the trade and strong demand was evident from the outset. All types and descriptions – regardless of style and spec – across the entire merino spectrum were swept further into record territory. By the final hammer, prices had generally risen by 40 to 60 Australian cents.
The Benchmark Eastern Market Indicator added 44 cents for the week, to finish at 2,027 Australian cents – pushing the EMI through the 2,000-cent barrier for the first time. After four consecutive substantial weekly rises, the EMI has increased more than 10 percent in the past month. This is the largest monthly percentage rise in the EMI in more than five and a half years.
The skirting market behaved very similarly to the fleece. Small impurities were basically overlooked as buyers scrambled to secure meaningful quantity. Prices generally increased by 40 to 80 Australian cents. Wools finer than 18.0 micron and those carrying less than 4 percent vegetable matter recorded the largest gains.
The crossbred sector had another week of mixed results as 30.0 to 32.0 micron again failed to attract strong support and recorded little movement. Twenty-five to 28.0 micron, on the other hand, was strongly contested as prices pushed forward by 25 to 55 Australian cents.
A limited offering of oddments received solid support, which was reflected in the three carding indicators rising by more than 11 Australian cents.