The price premium for 18 micron wool over 21 micron wool has fallen back in 2017/18 to date. The premium currently stands at 24% after climbing throughout 2016/17 to a peak of 47% in April 2017. The premium for 18 micron wool has been eroded this season as a result of a faster increase in the price for 21 micron wool compared with that for 18 micron wool. So far this season, the 18 micron price guide has increased by 9%, while the 21 micron price guide has lifted by 20%. In 2016/17, the 18 micron price guide rose by 40% while the 21 micron price guide only increased by 9%.
Despite the slide in the premium for 18 micron wool, it remains above the average since 2010. The premium for 19 micron wool over 21 micron woo has followed the same pattern as the 18 micron price premium, although the premium for 19 micron wool has dipped below the long term average. The discount for 26 micron wool is currently at 37%, more than the long term average of 31%, highlighting the divergence in trends in Merino wool prices and the price for Crossbred wool.
Further details including graphs showing the trends in the price differentials for 18 micron, 19 micron, 23 micron and 26 micron wool compared with 21 micron wool, are provided in the full version of the NCWSBA Weekly Newsletter, available to NCWSBA members.