Wool prices set to rise 5 per cent

Mansfield Courier - - PROPERTY -

NA­TIONAL Aus­tralia Bank is fore­cast­ing a five per cent rise in wool over 2013-14, to av­er­age around 1091 cents per kilo­gram.

The out­look is based on the stronger mar­ket per­for­mance at the end of 2013 and an ex­pected tight­en­ing of sup­ply in the first half of this year.

NAB’s head of agribusi­ness for South Aus­tralia and West­ern Aus­tralia, Matt O’Dea, said wool recorded six con­sec­u­tive weekly gains from early November un­til the Christ­mas re­cess.

“In the first week of wool auc­tions this year, the EMI has held its ground at around 1130 cents/kg - this is de­spite a strong of­fer­ing of 53,000 bales,” Mr O’Dea said.

“China r e mains t he sin­gle largest mar­ket for Aus­tralian wool, ac­count- ing for over three quar­ters of all ex­ports in 2012-13.”

In 2012- 13, t he vol­ume of wool ex­ported to China i ncreased by 12 per cent, but a 14 per cent de­cline in prices dur­ing this pe­riod saw the to­tal value of ex­ports fall by five per cent.

This was due in part to poorer de­mand for Chi­nese woollen ex­ports from larger con­sumer coun­tries in the Euro­pean Union and the United States.

But t he set­back was partly coun­ter­acted by China’s grow­ing do­mes­tic de­mand for fin­ished woollen prod­ucts, which in­creased six per cent dur­ing the same pe­riod.

China now con­sumes around half of the wool gar­ments it pro­duces, putting it on track to over­take the US as the world’s largest ap­parel mar­ket by 2017.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.