Buyer scramble pushes up end-of-year wool prices

Buyer scramble pushes up end-of-year wool prices

Markets
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Stan Wallace updates news from around the traps.

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Jason Thomson, Schute Bell, advised the final sale of 2017 resulted in large price increases across all micron ranges as buyers scrambled to secure wool before the Christmas recess.

There was another large offering with growers keen to get wool into the market and take advantage of the current strong market conditions.

Before the market opening this week buyers were reporting intense interest from their customers, highlighting that these price levels are not only attributed to low supply, but also strong demand.

Major gains were again seen in the Merino and finer Crossbred types. A number of these micron indicators finished at record levels including the carding indicator which continues to amaze most market observers. Chinese buyers dominated purchasing again however there is very strong competition coming from European and Indian interests. 

 This widespread competition has created intense bidding from buyers in the sale room.

For the 2017 calendar year the total dollar value of wool sold has surpassed the $3 billion mark. The last time this amount was achieved was back in 1995 when wool production levels were far greater than present.

The EMI is over 400c/kg ahead of the same period last year. 

2017 sheepmeat market

Meat & Livestock Australia reported that May 2017 was a turning point for lamb and sheep slaughter. As supplies increased in spring, prices resisted typical seasonal decline. Heavier carcase weights boosted production. Lamb, mutton and wool prices had an unprecedented run during the year, with support from both the domestic and global markets.

However, the year has not been without challenges. An extremely dry winter and start to spring deteriorated, pastures and crops, particularly across NSW, WA, SA and Tasmania. As a result, lamb and mutton turn-off increased – but robust domestic and international demand saw the market buck the typical supply/price relationship.

The story Buyer scramble pushes up end-of-year wool prices first appeared on Queensland Country Life.

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