Fine wool producers in the Ballarat district are celebrating a long-awaited surge in demand that is taking wool prices to a record high.
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Friday’s week 47 Australian Wool Market (AWT) prices continued the unprecedented trend of past weeks with merino wool of all types and descriptions posting solid gains.
A total of 30,053 bales were offered, with 17.0 micron through to 22.0 micron wool selling at levels 40 to 80 cents above those achieved at the previous sale. Coarser microns have posted the largest increases over the previous three AWT sales, resulting in a unique scenario where the average price difference between a 19.5 micron wool and a 22.0 micron wool is only 50 cents.
Elders Ltd district wool manager and auctioneer, Elliot Lindley said it was “terrific news” for those graziers still carrying sheep with the Benchmark Eastern Market Indicator, already sitting at an all time high of 1,943 cents, this week adding a further 40 cents and pushing it to a new record of 1983 cents.
“The numbers of sheep are down from 10 years ago and the lack of quantity is a factor in what is pushing up demand. It’s a supply and demand market and there is strong demand from China and Europe,” he said.
Laguna Bay Pastoral Banongil stock manager Sean Carroll said they were shearing 16,700 ewes this season producing wool with a micron range from 18 micron merino through to 23 micron crossbred.
He said he wasn’t completely surprised by the high wool prices. “Sheep numbers are dropping and it is supply and demand, after all.”
“I’m happy with the quality (of the wool), there’s just less of it. It hasn’t been the best season … we’ve had a very dry autumn, so we have had to keep feeding.”
Mr Carroll said he expected the prices would continue. “Long term, the outlook is good. Italian and Chinese companies are looking forward and indicating they will be buying over the next five to eight years, so it (the prices) should continue.”
Wool classer Alistair Ross said the strong wool prices were “really good for the farmers and the agricultural industry.”
His well-trained eye can detect the difference in fleece quality and he does his best to skirt and sort to get the best possible price. Banongil produced more than 300 bales of wool this shearing. Elders Limited buys the wool direct and it is then sold in Melbourne.
Pat Walton, from Wurrook Merino Stud at Rokewood, said wool is “a product the world wants”.
“The high prices have been a long time coming. Wool needs to find a new level and we all really hope it does.”
In this week’s AWT report, the EMI has now added 488 cents over the previous 12 months, which is an increase of more than 32 per cent.