Strong market lifts EMI to 1101c

06 Feb, 2015 08:00 AM
Comments
7
 
Photo: CSIRO
A number of lots in the 20-micron and broader range were trading over 1200c
Photo: CSIRO

THE largest weekly price gain for wool in 17 months has lifted the Eastern Market Indicator (EMI) above 1100 cents a kilogram for the first time since February 2014.

After the Australian Wool Exchange (AWEX) opened the new year on 1059c, unchanged from 2014's final week, the EMI climbed to 1070c last week. This week's 31c rise brought the indicator up to 1101c/kg.

AWEX senior market analyst Lionel Plunkett said this week's auctions saw solid interest for all wool types, but like last week most of the action was in the finer ranges.

"Best style and 40 Newtons per kilotex (Nkt) were initially the focus, rising 30 to 50c in the 18.5 and finer range on the opening day," Mr Plunkett said.

"However, there was a reversal of fortunes on Thursday when support for the better types moderated as buyers turned their attention to the lower spec grades and those in the broader microns."

Mr Plunkett said a jump in price levels of 30c was not uncommon and had a number of lots in the 20-micron and broader range trading over 1200c.

"Adding to the positive vibe was a strong finish to the day in Fremantle which closed out the week outperforming the East Coast in selected pockets."

The west closed on 1130c/kg (up 41c), with 1127c at Sydney (up 29c) and 1084c in Melbourne (up 32c).

NOTE: The first version of this article mistakenly ran with headline "two-year high".

FarmOnline
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READER COMMENTS

Woolie
6/02/2015 12:55:13 PM

1 year high guys!! EMI was 1114c this week last year
KP
6/02/2015 6:48:44 PM

Very poor journalism. Look at your own graph. 1 year high, wow! Break out the beers. Compared to other rural commodities wool is all but dead.
Chick Olsson
7/02/2015 2:21:20 PM

Actually, on US dollar parity, fine wool is about 20 % lower price than this time last year and is still far from being a profitable product to grow.
EDITOR
9/02/2015 7:31:25 AM

Thanks commenters - although the error came from AWEX info, we should have confirmed the figures. We have checked the graphs and amended the story, appreciate the heads-up!
Jono
9/02/2015 9:24:01 PM

It looks to me like the graph needs updating. It only goes up to Dec 2014. If the graph showed the increase to the current 1101 c/kg it would be a two year high.
Chick Olsson
10/02/2015 6:36:29 PM

Well done, editor. Very nice wicket keeping.
Ted O'Brien.
18/02/2015 3:01:22 AM

Noting Chick Olsson's very pertinent observation on price, I remind everybody again that wool is in this parlous position because the acute artificial scarcity which the Howard government created when dumping the stockpile has made it impossible ever since to make secure plans to trade in wool. No plans means no trade. As in 1970, only a floor price can fix this. Just as I have warned, the trade in wool will now become a closed shop at a low volume. Zegna's investment in production marks the start of this. It is the only way that a committed trader can have a secure supply.

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