Wool prices hit 20-year highs this week as strong demand from Asian and European processors continues. Buyers from China continued to dominate this week's sales.
The Australian Wool Exchange's Eastern Market Indicator (EMI) closed on Thursday at 1,348 cents per kilogram clean, up 41 cents on the last sale held on March 3. This is the highest level the EMI has reached in absolute terms, when no adjustments were made for inflation.
In U.S. currency, the EMI hit a record high of 1,357 U.S. dollars per kilogram, an increase of 29 cents compared with the March 3 sale. This is over 400 cents higher than 20 years ago.
"There were a number of wools that made over 2,000 cents per kilogram greasy, which equates to about A$3,500-$4,000 a bale," said an Australian auctioneer.
The value of the Australian dollar eased from 101.6 U.S. cents last week to 100.7 U.S. cents.
In New Zealand, a drop in the value of its dollar over the past week contributed to a hefty lift in wool prices. The demand and the more favorable exchange rate pushed up prices by a further 4 percent to 12 percent. Buyers from China and India dominated the sales.
Reprinted in part from The Wool Record Weekly