Dif­fi­cult sea­son leads to drop in wool pro­duc­tion fore­cast

Countryman - - WOOL - Bob Gar­nant

Aus­tralian wool pro­duc­tion has been fore­cast to fall 10.8 per cent for the 2018-19 sea­son to 305 mil­lion kilo­grams.

In de­vel­op­ing its pre­dic­tion, the Aus­tralian Wool Pro­duc­tion Fore­cast­ing Com­mit­tee took into ac­count the ex­pected re­duc­tion in both the num­ber of sheep shorn and the av­er­age an­nual wool cut per head as a re­sult of the con­tin­u­ing dif­fi­cult sea­son.

Com­mit­tee chair­man Rus­sell Pat­tin­son said the sea­son had been dif­fi­cult through most of New South Wales and Queens­land, north­ern Vic­to­ria and east Gipp­s­land, north­ern South Aus­tralia and parts of south­ern WA.

“Shorn wool pro­duc­tion in NSW is ex­pected to de­cline by 20 per cent to 100 mil­lion kg and by 14 per cent in Queens­land to 7.1 mil­lion kg,” he said.

WA pro­duc­tion was ex­pected to fall 3.6 per cent to 62.7 mil­lion kg.

Mean­while, the AWEX Eastern Mar­ket In­di­ca­tor recorded an in­crease for the first time in more than a month, after sales in Syd­ney, Mel­bourne and Fre­man­tle.

AWEX mar­ket an­a­lyst Li­onel Plun­kett said the in­crease was mainly a re­sult of solid gains in the card­ing and cross­bred sec­tors.

“The Merino fleece mar­ket per­formed with mixed re­sults, with all three cen­tres record­ing var­ied out­comes for sim­i­lar wools,” he said.

“A large se­lec­tion of fine ten­der wools strug­gled to at­tract strong buyer de­mand, this con­trib­uted to the Micron Price Guides of 19.0 and finer gen­er­ally fall­ing by 30 to 50 cents per kilo­gram.”

Mr Plun­kett said the 19.5 to 20.5 micron MPGs at­tracted ex­cel­lent com­pe­ti­tion and man­aged mod­est in­creases for the week, while a lim­ited se­lec­tion of 21 micron and coarser were gen­er­ally un­changed com­pared to the pre­vi­ous sale.

“The EMI recorded a 5¢/kg in­crease, to close the week at 1781¢/kg,” he said.

“As a re­sult of the finer mi­crons suf­fer­ing larger losses over the pre­vi­ous few months, the price dif­fer­en­tials be­tween mi­crons has shrunk con­sid­er­ably.”

Mr Plun­kett said this was best high­lighted when look­ing at the dif­fer­ence be­tween the MPGs of a 19 and a 21 micron.

“Cur­rently, this dif­fer­ence is av­er­ag­ing only 47¢/kg, com­pared to over 110¢/kg when the MPGs peaked back in Au­gust,” he said.

“The cross­bred sec­tor recorded gains for the week with prices gen­er­ally in­creas­ing by 5¢ to 25¢/kg, with the largest gains felt on the bet­ter pre­pared lines.”

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