Government analysts are in agreement with industry experts in tipping a steady rise in wool prices over the next few years.
The Eastern Market Indicator is tipped to rise 11 per cent to 1443 cents/kg by next year.
The EMI is this week sitting at 1368c/kg.
The ABARES Outlook conference has been told improved conditions in advanced economies are expected to increase demand.
It is in line with last week's forecast from Australian Wool Innovation which said its network of offices around the world are all reporting positive signs for wool in the year ahead.
AWI chief executive John Roberts said there was "a real sense" 2023 will be better then the last year.
Much of the optimism comes from China's relaxation of its zero-COVID policy which led to weak demand and a dampener on prices last year.
In other natural fibre projections, ABARES says the value of cotton production is forecast to decline 15per cent to $2.6 billion in 2022-23.
The impact of floods in NSW and a forecast fall in international cotton prices is expected to have an impact.
ABARES this week said wool production is expected to fall slightly with the forecast arrival of drier conditions across the country.
In 2023-24, shorn wool production is expected to decrease 1pc to 327,000 tonnes.
The onset of dry conditions will decrease pasture availability and quality, alongside a continued rise in the sheep shorn ratio, is expected to push wool cut per head down to 4.42 kilograms per head ABARES' research has shown.
The continued decrease in pasture availability and quality through 2024-25 will prompt graziers to reduce their flock sizes, with wool cut per head also declining.
Meanwhile, the national sheep flock is expected to continue growing to 71 million head.
Favourable seasons have improved pasture growth and feed availability.
After three years of La Nina, the flock has rebuilt from a low of 63.5 million sheep in 2019-20.
Australia's national flock is predicted to grow by 3.5 million head in 2022 to reach 74.4 million head, its highest level in nine years.
According to Meat and Livestock Australia, the national flock will grow by 4.9pc driven by the strength of the NSW and Victorian flocks.
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By 2023-24, ABARES says, the flock is expected to continue to rebuild with average production conditions.
Over the medium term, the size of the flock is expected to moderate and trend down to 69.6 million head by 2027-28 due to average pasture growth conditions.
Australian shorn wool production is projected to decline 1pc to 325,000 tonnes in 2024-25.
Wool prices will largely be decided by the seasons, whether wet or dry, into the future.
On cotton, ABARES said the NSW floods had disrupted cotton planting, decreasing the irrigated cotton area and production.
"Meanwhile, international cotton prices have declined significantly through 2022-23 due to poor macroeconomic conditions dampening demand for cotton-based textiles," ABARES has forecast.
The value of cotton production is forecast to fall a further 10pc to $2.3 billion In 2023-24.
Dry conditions across Australia are expected to reduce Australian cotton production but improved macroeconomic conditions in 2024 and increased demand for cotton will push prices higher.
Over the outlook period to 2027-28, cotton production value will fluctuate according to seasonal conditions and water availability.
The value of cotton production is projected to be $1.6 billion in 2027-28, and $884 million if dry seasons return.
Chris McLennan
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
ACM national rural property writer based in Bacchus Marsh, Victoria. Career journalist. Multi award winner.
