JUST when it seems that wool prices can’t go any higher the Eastern Market Indicator rockets ahead by 45c/kg.
Traditionally the wool market has been a fickle one. In fact, some producers have even exited the industry.
But with the Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) currently at a historic high of 1681c/kg things have never looked better.
Riverina Wool Testers principal Trent Fordham of Wagga is in the box seat when it comes to watching the upward trajectory of prices.
“It is an exciting industry to be in right now,” he said.
“Producers are pretty excited and they are keen to chase those micron premiums,” he said.
And for people who have stuck by the industry and invested in good genetics he said now was the time to truly reap the rewards of a buoyant market.
“We have been flat out, it is a remarkable time,” he said.
Along with the high prices Mr Fordham said there had been some excellent fleeces to test too in terms of quality.
And he said the high fleece prices weren’t isolated to those in the Merino industry. Producers with material genetics including composites, and crossbreeds had certainly not lost out during the market highs.
In addition to the high wool prices prime lamb producers have also been able to benefit from buoyant saleyard and over-the-hooks sales too.
When the latest market figures are added together the EMI has, in fact, risen by six per cent or some 58c/kg in the past fortnight.
According to AWEX the Australian dollar was slightly lower over the week, with the EMI in US$ terms posting a rise, also of 40c to end the week at 1293c. The EMI in US$ terms is edging higher, however it is still well off its previous record of 1504 cents set in July 2011.
Just 1.3 per cent of the offered bales were passed-in, resulting in 42,846 bales cleared to the trade.