With 1,101 cents a kilogram, the highest point in two years, wool prices are seeing a decent rally in the past two weeks in Eastern Market Indicator. Fine wool has seen the largest price increase, with 17-micron wool making 1388 cents a kilogram, up 94 cents for the fortnight. Cardings made of 880 cents a kilogram, is believed to be a record high price. Stronger wool is also doing good with 30-micron wool making 765 cents a kilogram, the most the category has made in 60 years. 

Bruce McLeish, wool manager with Elders northern, says the 60-cent rise in the past two weeks has been driven by the lower dollar and rising demand from the Chinese. China’s long awaited recovery appears to be gaining some strength, confidence does seem to be slowly returning to consumers there and there’s a flurry of domestic orders in the sweaters and other garments. 

It has been a tough year to produce wool, with dry weather reducing lambing rates and wool yield and quality. The Australian Wool Production Forecasting Committee has forecast production in the 2014-’15 season at 334 million kg down by 2 per cent from the 2013-’14 season total of 341 million kg.