The Australian Bureau of Agricultural and Resource Economics (ABARES) has projected mix outlook for wool. ABARES foresees the EMI to move up once again in the short-to-medium term, averaging around 1,160 cents per kilogram for 2014-15 and remain at around 1,155 cents per kilogram in 2015-16.

By 2018-19, the EMI is projected to plunge to around 1,133 cents per kilo as graziers restock and production recovers.

The Eastern Market Indicator (EMI) gained strength during the first half of 2013-14, passing 1,140 cents per kilogram in December for the first time since May 2012. While, the huge offerings have kept a limit on further price rises.

For finer wools the improvement in the wool market need not lead to price rise, according to Elders. As the drought will continue to affect prices at the finer end of the market .

While,, the head of National Australia Bank Agribusiness for South and Western Australia, Matt O'Dea, is of the view the EMI ought to average just below 1100 cents a kilogram.