Wool soars to ‘unthinkable’ highs as it closes in on $20 a kilogram

Posted May 18, 2018 15:31:48

Photo: Wool growers are enjoying a golden era with prices expected to crash through the “unthinkable” level of $20/kg at next week’s auctions. (ABC Open contributor Jason Schmidt)

Australia’s woolgrowers are about to hit a milestone many thought was unthinkable even a few years ago, with prices set to burst through $20 a kilogram.

Key points: Wool’s benchmark Eastern Market Indicator is expected to hit a record $20/kg at next week’s auction High demand from China and flat supplies will keep the price high for some time. Concerns are mounting the price is approaching a tipping point for foreign buyers

A combination of high demand from Chinese mills and flat supplies of wool at auction has seen prices rise 10 per cent since Easter and roughly double over the past 5 years.

Another frantic week of bidding drove the key market benchmark, the Eastern Market Indicator (EMI) up again to just 9 cents short of the $20 level.

Read More at www.abc.net.au

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