Wool up 54c

Local woolgrowers are seeing a welcome increase in prices in the auction rooms. The benchmark AWEX Eastern Market Indicator (EMI) has climbed steadily over the past month, posting gains in five out of the last six selling weeks.

The EMI now sits at a 1,249 cents per kilogram, marking a significant 54-cent jump since the final sales of February. This positive momentum puts the market a comfortable 9.4 per cent ahead of where it was this time last year.

Adding to the positive sentiment, a slight easing of the Australian dollar against its US counterpart has further boosted returns for growers. The EMI in US dollar terms has risen by 31 cents to 787 US cents per kilogram, briefly touching a high of 794 US cents per kilogram recently.

However, the horizon isn't entirely clear. 

Industry analysts predict potential headwinds for wool prices throughout April. Escalating global trade tensions, particularly the implementation of US tariffs on China and Europe, are expected to dampen downstream demand. This uncertainty could translate to a more cautious atmosphere in auction rooms.

Despite these looming pressures, local factors are expected to provide some support. Reduced wool production this season, coupled with the currently favourable exchange rate, may help to cushion the market from the full impact of international trade jitters.