Wool prices consolidate, but question marks remain over health of demand

摘要

The declining trend in wool prices witnessed since the start of the season was arrested in October, helped by the emergence of a slightly brisker offtake. A steadying in exchange rates with the US dollar in many of the major producing countries, and a slightly more stable macro-economic climate were also contributing factors. The Australian Wool Exchange's Eastern Market Indicator (EMI) hit a low on October 18 of A$1,147/kg, clean, but had rebounded to A$1,215 by the end of the month. The recovery was led by a strengthening in prices for Merino fleece (both mid-micron and finer), which were also the values hit hardest in August and September. Crossbred prices have typically held about steady, having outperformed most categories so far this season.