Wool market: EMI lifts above 1000c/kg
The wool market appears to be gaining momentum again as the EMI lifts above 1000c/kg this week. Here’s where it ended up.
THE Eastern Market Indicator has risen above 1000c/kg this week as the market appears to have reached its base level and is now slowly recovering.
The EMI finished at 1036c/kg this week, a rise of 99 cents on last week with 23,260 bales offered.
Australian Wool Network wool and sheep risk management specialist Brent Squires said a large order from the Chinese police force is said to have had an impact on market the gaining momentum.
“That Chinese order might have been the driving force and the recognition that we’d reached a low point in the market,” Mr Squires said.
“When you have that driver everyone starts moving because they don’t want to be buying a dollar dearer next week, they want to buy a dollar cheaper this week.”
The finer wool types saw the greatest price push with the 16.5 micron category up 152c/kg, the 17 micron gaining 185c/kg and the 19 micron category up 146c/kg.
Cross bred wools also realised prices gains of 30 to 40c/kg.
Mr Squires said there is speculation going into next week that the market will soften slightly again but still remain above 1000c/kg.
“If we can maintain somewhere around where we are at the moment then that’s a significant gain,” he said.
An increased offering of 33,200 bales is set to be offered next week but Mr Squires said that is likely to increase as growers see the EMI lift over 1000c/kg as a “trigger point” to put more wool into the market.
“There’s been plenty of people hanging onto wool so I think this will be a trigger for people to start realising the gains we’ve had in the market and capitalising on that. And I would encourage that too,” Mr Squires said.
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