Fine fig­ures for Aussie wool

North East & Goulburn Murray Farmer - - NEWS -

THE ex­pec­ta­tion for sus­tained, strong retail sales growth will sup­port con­tin­ued de­mand for Aus­tralian wool ex­ports and strength­en­ing prices for pro­duc­ers.

Se­nior ABARES econ­o­mist, Dr Caro­line Gun­ning-Trant, said the price of wool in Aus­tralian dol­lars had been in­creas­ing since 2014.

“In the two years since early Jan­uary 2015, prices have risen by about 35 per cent,” Dr Gun­ning-Trant said.

“The Aus­tralian East­ern Mar­ket In­di­ca­tor (EMI) wool price is fore­cast to rise by 8 per cent in 2016–17 to around 1360 c/kg.

“Prices are ex­pected to peak next year be­fore eas­ing in real terms as wool pro­duc­tion in­creases.

“And by the end of 2021–22, prices are ex­pected to still be rel­a­tively high at around 10 per cent above the 10 year av­er­age in real terms.

“The up­ward trend in prices re­flects the con­strained sup­ply of ap­parel wool—given lower flock num­bers—and firm de­mand, par­tic­u­larly for fine wool.

“Wool de­mand is con­tin­u­ing to grow in the Euro­pean Union and the USA—the ma­jor in­ter­na­tional mar­kets for im­ported cloth­ing,” Dr Gun­ning-Trant said.

“And in China, wool con­sump­tion is fore­cast to grow more strongly be­cause of rel­a­tively high rates of eco­nomic growth and in­creas­ing do­mes­tic con­sump­tion of lux­ury woollen tex­tiles.”

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