Wool agents, brokers and auctioneers are optimistic the market will continue strongly after last week’s positive return after the winter recess.
The AWEX Eastern Market Indicator (EMI) increased by 28 cents a kilogram clean during last week to 1550c/kg. According to Australian Wool Innovation, that was 253c/kg higher than at the same time last year or 19.5 per cent better. In US dollar terms, the EMI leapt forward by 47 US cents to roar through the 1200usc mark to close the week at 1220usc/kg clean as the stronger Australian dollar failed to dampen the current strong demand from mainly China. The EMI in USD was 22pc or 220usc higher than last season’s post break sale.
Ruralco Wool auctioneer Rob Ellis said it was a promising start. He said there seemed to be a lot of exporter interest from China, Europe and India.
“Competition was strong across all sectors of the market – from fine, fine-medium and even crossbreds’ (wool) was good.”
Landmark wool specialist Ted Wilson noted that there was a high clearance in last week’s large offering. But, he cautioned that high prices continuing would be dependent on supply.
“While the predictions are for lower supply in the coming few weeks, a high market sees wool that has been held, placed on the market by growers," Mr Wilson said.
“Prices will depend on the balance between supply and demand,” Mr Wilson said, adding exporters had reported good enquiry.
He said dry conditions in Western Australia, South Australia and much of NSW could also hit supply.