The Australian Wool Exchange's Eastern Market Indicator (EMI) closed this week at 949 Australian cents (A¢) per kilogram clean, up 21 cents per kilogram clean on the last sale held on Oct. 21, only 2 cents behind the highest rate reached over the last 10 years. If the market remains strong, expectations are that the EMI could hit its highest level of the last 20 years.
In U.S. dollars (US$), the market was up by 14 cents to 926US¢ per kilogram, with the
A$ easing from 98.3US¢ last week to 97.5US¢ this week.
"With the Australian dollar at extraordinarily high levels, the exchange rate alone makes it more expensive to buy Australian wool," commented Rita Kourlis Samuelson, wool marketing director for the American Sheep Industry Association. "Most of the time when the value of the Australian dollar increases, which makes wool more expensive to trade, prices soften to compensate. However, today, we are seeing customers paying more for Australian wool via exchange rates and prices, indicating good demand and a concern for low inventory."
Reprinted in part from The Wool Record Weekly