Wool Market Update (November 2021)

The following graph shows the AWEX Eastern Market indicator (EMI) in cents per kilogram clean, from 2014 to date.

The wool market has remained largely flat over the last few months. Chinese demand continues to be weak due to reduced production capacity and shipping issues. European buyers though have increased purchases of superfine wool, as their economy recovers from COVID-19.

Wool production has increased by 23% compared to this time last year, which may also me another reason for the stagnant prices.

With the EMI currently sitting at 1,319/kg clean, this should result in net average returns to clients with 19 micron Merino clips, of around $10.50/kg greasy assuming a yield of 65%. This would produce a return of $63/head net for sheep cutting 6.0 kg/head greasy.