Wool Market Update (September 2016)

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from August 2009 to date.

Recent prices have been historically high, but with some volatility since May 2015. Current strong prices relative to historical values, continue to reward producers who have persisted with Merino sheep.

Currently the AWEX EMI is at 1,309 c/kg clean. This should result in net average returns to many clients with Merino clips, of around $7.80/kg greasy, resulting in returns of $47/head net for sheep cutting 6.0 kg/head greasy.

This price of $7.80/kg net compares with the average Break Even Price for clients of $5.27/kg and that for the top 20% of $3.71/kg.