Wool market soaring to a new four year high last week

Wool prices have soared to a new four-year high due to a combination of market demand and low supply.The Easter Market Indicator (EMI) posted by the Australian Wool Exchange (AWEX) increased by 70c/kg. Moses and Son principal, Marty Moses of Temora said the high prices were due to a lower currency price combined with falling supplies.

RIVERINA wool producers are benefiting from some of the most lucrative market conditions.

Mainstream Chinese production gained the most ground this week with many categories jumping in excess of one dollar, Mr Moses said. Overall the Australian Wool Exchange Eastern (AWEX) Market Indicator added 70 cents to close at 1312c.

Despite the highs Mr Moses said that European processors have a very different view of the current market.

Europe is currently only purchasing around 10 percent of the Australian clip directly, another 20 percent or 30 percent of the clip is sold to Europe from China after early stage processing as wool top or yarn and fabric.

According to Mr. Moses, low supply is certainly a major factor in the current market and with less than 30,000 bales per week available for the next six weeks. AWEX senior market analyst Lionel Plunkett said that prices accelerated throughout the course of selling.

A price differential of 30 cents between many of the opening and closing quotations was testament to the strong buying pressure that unfolded during the sale.

The broader microns logged the best results, especially in Melbourne, where a better selection pushed 23 microns to their largest weekly jump in thirteen years.

At 1364 cents, the 23-Micron Price Guide (MPG) is now at a record level, eclipsing not only the AWEX series which commenced in 1995, but also the Australian Wool Corporation series which commenced in 1979.