Aussie wool clip on the up with the market in final 2022 trades
Despite a shearer shortage in some parts of the nation, Australia is on track to bring in a 5 per cent increase in wool in 2022/23 as the Australian Wool Exchange lifted for the second successive week to end the calendar year's trade.
Australian Wool Innovation released its forecast for the financial year on Friday indicating 340 million kilograms of greasy will be produced, up from 324 in the last reporting year. The number of sheep shorn will rise 4.6 per cent to almost 75 million head, with the average cut per head slightly up to 4.54 kg greasy.
Australian Wool Production Forecasting Committee chair Stephen Hill said that:
"... above average to highest on record rainfall deciles throughout most wool producing regions has produced abundant pasture feed contributing to a further rebuilding in the Australian sheep flock and high fleece weights. Australian flock numbers are forecast to increase by 4.6 per cent year on year, with the number of sheep shorn rising to 74.9 million head during 2022/23 – the highest since 2017/18."
At the Australian Wool Exchange this week, the Eastern Market Indicator rose 49 cents to 1,327c, which comes on top of a 54c rise the previous week. Michell Direct Wool's Andrew Partridge told Flow's Friday Country Viewpoint program:
"The interesting one is 50 in USD as well - 900 US is a nice little number for the seller and the buyer and the market's come up to that level again.
"Sometimes when we get this full gusto with China opening up now and realising their cupboard's bare and rush to market to buy wool. This isn't a shipping squeeze, this is in China mainly, cupboards bare, need to get on a ship ASAP. When they fill up that early stage of greasy the market may relax a little bit."
Hear the full interview on the Flow podcast player below: