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.
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.