It is interesting to compare the recent trends in international wool prices. Merino wool prices continue to power ahead to new heights, with no signs yet of sliding. Meanwhile, prices for medium Crossbred wool from Australia have recovered a little from the lows seen at the start of 2017. In contrast, prices for broad Crossbred wool from both NZ and the UK stumble along at 8-year lows, with not much sign of an improvement. However, I think that a recovery may be close at hand. As I reported in last week’s edition of the Weekly Newsletter, New Zealand’s wool exports were 17% higher in the first six months of this season compared with the same period in 2016/17. This will help clear the excess 180,000 to 200,000 bales of stocks reportedly held over from the 2016/17 season. As those stocks are diminished, prices for this broader wool will start to recover.
Further detail including a chart showing the comparison of the trends in prices for Australian superfine wool, South African medium Merino wool, medium micron Crossbred wool from Australia, and broad Crossbred wool from New Zealand and the United Kingdom, are provided in the full version of the Weekly Newsletter. Available to NCWSBA Members.