Wool Market Update (June 2017)

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from August 2009 to date. Decreased wool availability plus strong demand from buyers has led to record wool prices recently. While wool growers have been experiencing strong returns since early 2015, prices received over the last two months have been exceptional, with many growers netting in excess of $10/kg or $2,000/bale.

Currently the AWEX EMI is at 1,506 c/kg clean. This should result in net average returns to many clients with Merino clips, of around $9.50/kg greasy, resulting in returns of $57/head net for sheep cutting 6.0 kg/head greasy.

This price of $9.50/kg net compares with the average budgeted Break Even Price for clients in 2017 of $6.02/kg and that for the top 20% of $4.67/kg, providing a significant profit margin.