Despite a strengthening in the Australian dollar, wool prices in key markets have risen slowly and steadily so far in 2016, according to data published by the Woolmark Company.
The benchmark Australian Eastern Market Index (EMI), which ended 2015 at $4.12, increased to $4.22 during the week ended Mar. 18, a year-to-date increase of $0.10 per pound, or 2.4%.
The increased value of the Aussie dollar against other key trading currencies makes Australian wool more expensive to foreign buyers. Although in the first several weeks of the year currency values tended to slow market activity, as buyers held back on purchases for fear the currency would retreat, by mid-month demand picked up across the board as the currency showed no signs of weakening.