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WOOL PRICES ARE SET TO STAY HIGH FOR SOME TIME

WOOL prices will stay high

for a while

BY TYSON CATTLE
27 Mar, 2011 04:00 AM
WOOL prices will stay high for a while yet.

That’s the message from wool brokers across the State with most predicting prices to continue to rise over the next few months.

Most people in the wool industry are also hoping prices become sustainable at the higher levels rather than drop.

Primaries wool manager Tim Chapman said it was paramount that prices stayed sustainable.

“We don’t want this price rise to just benefit a few and just be there for a short time,” Mr Chapman said. “Yes prices are high but we want it to benefit everyone and be high for a long time and I think it will.”

The Australian Wool Exchange (AWEX) Eastern Market Indicator (EMI) was up a staggering 317c (30.7pc) since January and was up 466c (52.8pc) since the start of the season.

The EMI in US currency is up 75.2 per cent since the start of the season.

Mr Chapman said fine wool prices last week still managed to go up another 10-15c for the week but he predicted broader wool to start having a bigger impact on the market in the near future.

“The 21-24 micron wools have started going up in price also, they went up about 40-50c last week,” he said.

“And that is usually how it works. The finer wool will rise quickly then flatten off a little bit while the broader wool is slower but eventually makes up some ground.”

Mr Chapman said supply had been high in the last couple of months which he attributed to the high number of farmers shearing during the February-March period.

He said there were also a lot of farmers selling wool they had stored for the last couple of years due to the high prices.

“A lot of that on-farm wool has been getting sold since November but mixed with the high shearing period, supply is quite high,” he said.

“I think supply will begin to drop off in late April and June but will pick up again at the start of the season – around August.”

Elders WA wool manager Danny Burkett said last week the EMI broke the 1988 highest point which was significant.

March 27th, 2011
Topic: ANIMALS & STOCK, PRICES, Sheep, WANTED TO BUY, WANTED TO SELL Tags: , , , , , ,

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