THE strength of the wool market after the winter recess has caught some vendors and buyers by surprise and forced the Eastern Market Indicator to a record high of 1614 cents a kilogram on Thursday.
Australian Wool Exchange market information manager Lionel Plunkett described the rises in the market as “dramatic" as buyers had to fight hard to secure their share of a limited selection.
“Demand seemed to outstrip supply, causing all types and descriptions to experience large gains,” Mr Plunkett said.
“The benchmark EMI rose by a significant 46c/kg, the largest daily increase in more than two years.”
Mr Plunkett said the tone was set on the first day from the opening hammer in the Eastern states, with prices across the entire Merino spectrum increasing by 40c/kg to 50c/kg from the outset.
“All types and descriptions enjoyed similar rises regardless of style or spec,” he said.
There were more increases on the second day of auctions last week to result in the EMI now being at its highest ever published level.
“Notably, the micron price guides for 22- and 23-micron are now at record highs,” Mr Plunkett said.
That put 22-micron wools at 1603c/kg at northern markets and 23-micron (which was only offered at southern sales) at 1565c/kg.
The 21-micron wools in the north managed at 92c/kg dearer trend and hit 1668c/kg.
