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News and market insights by AWI trade specialists into economic, finance, and trade issues that affect the production, sales and demand for Australian wool.
This month we examine the results for the MLA and AWI Wool and Sheepmeat Survey Report for March-June 2017 that offer a snapshot of the current flock make up and shearing over the past four months. The survey is conducted on a quarterly basis to improve the frequency and consistency of data collected, analysed and presented to woolgrowers.
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All wool price indicators in the Merino sector are registering at the 100th percentile bands measured over the past 5 years. The current March average of all AWEX MPG (micron price guide) indicators between 16.5 and 22 micron as at the week ending 24th March 2017 compared to the previous 5 years has never sold at higher levels.
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This month we take a look at how wool prices have continued to pull away from other fibres used in clothing, demonstrating the superior positioning of wool in the marketplace. We also examine the premiums for superfine wool that have finally returned.
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Recent wool prices have been a welcome start to the 2017 calendar year, with the EMI (Eastern Market Indicator) reaching well above 1400 ac clean/kg. The market has been marked by record highs and even ‘peak’ wool values, yet it is important to understand the previous times wool has achieved these values. This month we place some historical context around the current market and explore supply versus demand.
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As we enter the Christmas period and the 3-week selling recess, the market is in a strong position for woolgrowers after a positive start to the 2016/17 season. We have enjoyed a relatively stable market for the past few years, and 2016 has only been a continuation of this.
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