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8 August 2022
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Wool Street Journal
Wool
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Wool Market Update – encouraging signals for growers as 2022/23 wool sale season starts

Based on initial results from the first few auctions of the 2022/23 wool sale season, demand and confidence has lifted.

When better style pre-lamb crossbred wools have come forward to the auction room, the market has responded with enthusiasm, resulting in prices appreciably above comparable levels over the past few years.

Good early season shorn wool is generally better quality than comparable summer shorn wools, and premiums are currently being paid for well prepared, low VM, good colour crossbred wool styles. One key crossbred wool indicator, the 300 cents per kilogram greasy benchmark, has been passed in recent weeks, at least for choice lots. This is an important psychological barrier that will give growers grounds for optimism. Although well short of where we want the market to be to assure long term sustainability, this price signals an encouraging trend.

Activity around mid-micron wools has increased, with 28-31 micron wools in particular attracting strong interest.

So far a nominal offering of merino wool has attracted little attention: while the Australian season remains in recess, this is to be expected, with low buyer activity, and the lots offered predominantly passed in, failing to meet grower expectations. Once Australia’s new sales season commences, fine wool activity should escalate.

Meanwhile, passing rates for crossbred wool have been encouragingly low.

Challenging weather conditions prevailed during the first part of winter, above average moisture levels in particular corresponding with an unwelcome increase in colour and VM content, making it a difficult season to produce high quality crossbred wool. However, these variables do not seem to have unduly influenced export demand, with Chinese manufacturers to the fore again, after showing greater hesitancy for several months at the end of last season.

Demand for better quality wools, with good colour and sound preparation, remains strong. Growers able to meet that demand can look forward to improving on their returns from recent years.

Grant Edwards, General Manager, PGG Wrightson Wool

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