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

A yard of sheep at sunsetAustralia’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.

Records have been broken virtually on a daily basis and most grades of wool have never been more expensive.

via Wool soars to ‘unthinkable’ highs as it closes in on $20 a kilogram – ABC News (Australian Broadcasting Corporation)