Review And Prospect Of Australian Wool Market

Market Review

Over the past six months, the wool market has experienced a roller coaster ride.

Despite the following factors, there are still more positive factors to talk about.

Although the price of Chinese wool (20.0-24.0 micron) is still 15% lower than that of the June Australian dollar, it has remained at a profit level for wool herdsmen.

Because of the above average rainfall in eastern Australia, wool is once again high yielding, increasing the production of wool in the fineness range.

The price of crossbred wool is also far higher than the long-term average, which ensures the basic profit of lamb producers.

The most disappointing performance of the market is the 19.5 micron fine count wool. Since June, some Australian dollar prices have fallen by 30-40%, far below the cost of production, causing great losses to wool producers.

Over the past 5 years, in the western regions of England, New South Wales, Tasmania and Vitoria, it has a hundred years old tradition of ultra-fine.

I am sure, whether it is Australia or

In most cases, in the face of difficult market, exporters will take a very cautious approach in the course of paction.

supply

The production of shearing is expected to increase from 345 thousand tons in 2010/11 to 355 thousand tons, an increase of 3.5%, and the market price is still determined by supply.

The output of fine wool will increase slightly by 18.5 microns. On the contrary, the output of 19.0-26.5 micron, especially 20.0-21.5 micron, will be reduced.

Bulk density increase / decrease is not large, between 0.8%-1.5%.

The whole yield of hybrid wool basically remains unchanged, but fineness is thicker. Most of them are concentrated in 28.5-32.0 microns.

Wool producers do not want to keep the new quarter of wool, but as soon as possible.

Some manufacturers even cut their stock early.

The broker pointed out that in the end of this year, the wool in the hands of manufacturers has been very few.

This means that there may be a shortage of wool, especially fine count wool, as early as March.

The continuous good weather conditions in Eastern States will ensure that the length of the hairs is good and the washing rate is high.

Market trend

In the short and medium term, supply will determine market prices.

This is true in early 2011, but there is strong consumer demand to support the market.

The Australian dollar / dollar exchange rate has been and will continue to fluctuate 6%-7% in the next week or so.

All these factors will lead to the wool market.

For the most part of the year, the lack of confidence in the market was mainly caused by the debt crisis in the euro area.

Although European leaders have taken many measures, they are not effective enough to solve the problem.

Wool products from Europe, Australia and the United States

Overall, the market situation is better than it was 18 months ago, but the unknown factor still shrouded the market.

There is no doubt that those cautious companies will win the market.