Prices rise yet again
THE benchmark wool price has again hit 2000c/kg as buyers scramble to secure adequate supplies after the Chinese suspension of greasy wool imports from South Africa.
The Eastern Market Indicator last week rose for the eighth consecutive week, spiking 59c/kg to 2027c/kg, passing the 2000c barrier for the first time since October.
The indicator is now 207c/kg higher than the same time last year, but 89c/kg lower than the record of 2116c/kg posted last August.
Fine merino wool at 19-21 microns and crossbred wool at 26-28 microns were the most sought after, rising 4.2 per cent and 6.5 per cent respectively. Prices for 19-22 micron wool spiked at 60-69c/kg, while
❝Prices were looking sustainable as we were recording small, steady rises, but last week it jumped fairly sharply, which is usually a worry.
— Lionel Plunkett
26-30 micron wool rose 42-65c/kg.
Australian Wool Exchange market information manager Lionel Plunkett said the EMI had only ever spent 19 selling days above its current level.
Mr Plunkett said the market was somewhat influenced by China’s decision to place an immediate ban on imports of South African wool last week due to a foot and mouth disease outbreak.
However, Mr Plunkett said they had been expecting a dearer market despite this.
He said the EMI had risen 117c/kg since the opening week of sales this year and 10 weeks has been the longest rally previously recorded (since the end of the reserve price scheme), in 2009 and 1993.
“Prices have been rising for eight weeks currently, so we are closing in on that record,” Mr Plunkett said.
“Prices were looking sustainable as we were recording small, steady rises, but last week it jumped fairly sharply, which is usually a worry.”
According to AWEX, the 21 micron indicator hit record levels last week, jumping 98c/kg to 2368c/kg in the north and 63c/kg to 2344c/kg in the south.
With almost 50,000 bales on offer nationally this week, Australian Wool Exporters and Processors executive director Peter Morgan said offerings for the coming three sales were expected to range from 36,460 bales to 49,738 bales.
Dr Morgan said this was 5.5 per cent less than in the same period last year.