Wool prices have opened the season strong with the Eastern Market Indicator (EMI) breaking 900c/kg.
At the close of trading on Wednesday in Melbourne and Sydney the EMI was at 904c/kg clean, a rise of 25c/kg over the pre-Christmas close and at its highest rate since May 2008.
This week's rises, which were across all categories, particularly the middle microns, defied a strong exchange rate and a relatively large national weekly offering of more than 50,000 bales.
Consensus among both brokers and exporters was that this week's gains were being driven by supply concerns and further rises were likely over the next few weeks, prior to the Chinese New Year celebrations in mid-February.
Reprinted from Weekly Times Now, AU