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Australian Wool Prices Skyrocketing

• By  Textile Excellence
• January 12, 2017

Fine quality Merino wool prices are rapidly heading north due to favorable demand from China, Europe and India. The Australian Wool Exchange’s Eastern Market Indicator has reached 1413 cents on 11th January 2017 on strong trading. This is a 5 year high point for Merino wool according to available data. Wool traders indicate that fine quality Merino wool is in short supply whereas demand has been very healthy, especially from China. This has jacked up the prices in the New Year and current price is at least 20-30 cents higher than the end of the year prices.

Even coarser variety of wool prices are also strong and forward activity is reported to be healthy. Wool prices have been gradually growing since last year and expected to touch even higher level this year. Australia’s wool production is expected to be up this season, with predictions of 332 million kilograms in 2016-2017. However, this increase is not expected to have adverse impact on the fiber prices due to robust demand.                        

Textile Excellence