Wool auction prices jumped higher this week on the back of sustained buying support from China. The Australian Wool Exchange's Eastern Market Indicator (EMI) increased by 5 percent to 1,086 Australian cents per kilo, clean, its highest level since the first week of June. The EMI expressed in U.S. dollar terms rose by a comparable margin, to 1,136 U.S. cents per kilo.
The principal factor driving the market higher was again brisk buying of mid-micron merino fleece, prices that increased between 6 percent to 8 percent. The other star performer was oddments, which witnessed a 4-percent to 6-percent rise. Finer-micron wool values rose by 1 percent to 5 percent, whereas crossbred prices increased by 2 percent to 3 percent.
The industry will be watching for a reaction to this increase and if this significant spike in the wool market will be maintained in the coming weeks.
Reprinted in part from WTiN Wool Market Report