Finer micron wool shines as Aussie wool hits $1 billion for the season
The Australian wool market continues to rally, with the Eastern Market Indicator sitting above 1200c/kg. And there’s one key factor driving prices.
CHINA was the key driver behind a slight lift in wool prices last week, pushing the value of the Australian wool industry beyond $1 billion.
The Eastern Market Indicator closed trading at 1285c/kg, a rise of 6c/kg on the 1291c/kg recorded the previous week.
Fox and Lillie wool brokerage manager Eamon Timms said the rallying strength of the industry was down to one key factor: the influence of China in the market.
“When the season opened up in July, at the point we were in the middle of a COVID-induced crisis, and the wool price was really low,” Mr Timms said.
“It’s managed to climb up, and it’s continued to rise, particularly for finer wool.
“Wool 19-micron and finer has risen so remarkably in value since July. It’s climbed out of a hole.”
A recent Australian Wool Industries Secretariat report put the value of wool sold for the season at $1.017 billion, or $1307 a bale.
There were 45,126 bales offered last week, up on the 39,841 the sale prior, with 9.3 per cent of the offering passed in.
The number of bales offered at auction this season has lifted 4.6 per cent compared to 2019-20, according to the report.
China remains the key market for Australian wool, Mr Timms said, and last week was no exception.
“Chinese sales dipped only very briefly after the virus, then their economy got marching again,” Mr Timms said.
“It goes to show how healthy the retail side of their economy is. They have a strong economy, they can’t travel at the moment, and they are spending on luxury goods, which wool plays into.”
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