Wool prices surge
THERE were no signs of slowing down in the wool market this week, as the Eastern Market Indicator struck its highest ever point of 1943c/kg.
The EMI is up 28 per cent on this time last year and in Melbourne last week all micron indicators lifted except 32.
The biggest jumps were 23 and 24 micron, which both lifted 63c/kg to finish at 2091c/kg and 1945c/kg respectively, while 21 micron lifted 60c/kg to finish at 2138c/kg.
At the finer end of the scale, 18.5 and 19.5 micron lifted 42c/kg to finish at 2293c/kg and 2186c/kg respectively.
The pass-in rate remained as low as last week, at 2.3 per cent and 35,556 bales sold.
❝We’ve basically been telling clients to sell into the best market they’ve seen in their life. — Kelvin Shelley
Australian Wool Network technical manager Kelvin Shelley said the market was performing like he had never seen before.
“At this stage, the Chinese buyers just don’t seem to be easing up despite the high prices and it’s the first time I’ve seen that in my career,” Mr Shelley said.
“We’ve basically been telling clients to sell into the best market they’ve seen in their life.”
Mr Shelley said Chinese buying activity was high, demonstrating a concern for supply going forward.
“All the exporters were very confident in what they were purchasing, considering the low volume that’s on the market currently,” he said.
“Chinese buyers are worried about getting as much volume as they can, with limited quality on offer at the moment, to keep their machines running.
“Speaking to the majority of exporters, they’re very confident going into next week ... their customers still want to buy at large quantities, to get the wool on to ships as fast as they can.”
And it’s not just fine microns booming, with crossbred wool prices also showing a consistent build since April.
“Crossbred 25.5 to 29 micron indicator sold really well and 28 microns are at an all-time high; they’ve really caught up in the last four or five weeks,” Mr Shelley said.
“It’s hard to be in a market this good and tell clients to sit back and hold their wool.
“It’s great to see that everyone has worked out that wool is a brilliant product – and it’s the younger generation that are driving demand for it.”
Australian Wool Innovation said last week’s buyer competition was “intense” and “aggressive”, pushing the immediate price gains across the board.