Wool Market Update (November 2013)

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from August 2009 to date. This graph clearly shows the peak in wool prices during mid 2011. It is important to remember that this peak was a result of wool prices tracking very strong cotton prices, rather than a fundamental change in the supply and demand of wool.

Whilst prices are now some 350 c/kg clean below their peak, they are still well above the prices received in the 10 years prior to 2010.

During the past 9 months, AWEX has traded within approximately a 100 cent range between 1,000 and 1,100 c/kg clean. The recent spike in prices has seen it move back to the top of this range.

Currently the AWEX EMI is at 1,095 c/kg clean. This should result in net average returns to many clients with merino clips, of around $6-30/kg greasy.