CCWG Wool Market and Business Update – Fall 2018
2017/18 Wool Market Update
In the last 12 months fine wools from all origins have achieved unprecedented record prices although at the time of this writing prices have pulled back for most microns in the last couple of weeks. Unfortunately the crossbred and broader wools which are much more plentiful in supply have been left behind for the most part and have only recorded marginal increases compared to the previous year.
The growth in fine wool prices can be attributed to two main factors. There is major concern regarding future available supply due mainly to ongoing Australian drought in most of the major wool producing states. This has resulted in decreased production ie lower fleece weights due to feed shortages and reduced sheep numbers. For the 2018/19 season it does not look any better with the current forecast of a 5.7% reduction in the Australian wool clip.
As always, China is playing a major role in influencing the market due to the...