AU Wool Prices Finish at Record Level
December 16, 2016

Continuing solid demand for wool from China, especially for Merino fleece, pushed prices to a record calendar year level this week, in the final auction series for 2016.

Merino fleece sold generally 20-30 cents/kg higher and up to 40 cents/kg for some secondary types, helping to lift the Australian Wool Exchange Eastern Market Indicator 6 cents to 1355 cents/kg clean - 90 cents higher than its 2016 starting point.

This represented a year-on-year increase of 7.1 percent and the highest calendar-year closing figure on record. It was achieved with the Australian dollar at US74.22 cents, putting the EMI in US dollar terms at US1006 cents/kg clean, down 6 cents.

Auction turnover for 2016 was just over A$2.5 billion - the largest amount since 2002's figure of A$2.9 billion, when volume was 62 percent higher. The average gross value of an Australian bale of wool sold at auction for 2016 (excluding New Zealand wool sold) was $1478, the highest on the AWEX database since 1997.

Sales will resume the week beginning January 9.