Australian wool growers can look forward to another year of strong prices as market fundamentals remain favourable for sellers.
The positive outlook for 2018 builds on a record breaking year in
2017. The AWEX Eastern Market Indicator (EMI) reached 1830
cents/kg clean in early March 2018, a record high in nominal terms and 30 per cent higher than a year ago.
Australian wool production has increased slightly, with greasy weight production up 2.1 per cent (AWTA, 2018) compared to this time last year. The national flock is also increasing following consecutive seasons of favourable conditions. The number of sheep shorn in 2017/18 is expected to be up 1.7 per cent (AWI, 2017).
Australian wool exports have increased in both quantity and value over the past three years. A total of 348,126 tonnes of wool was exported in 2017, up six per cent compared to the previous year. In value terms, wool exports were worth $3.65 billion dollars in 2017, representing an increase of over 20 per cent year on year.
China still accounts for most of Australia’s wool exports – over 77 per cent of Australia’s exported wool by volume.
The weather outlook for autumn and early winter suggests
conditions are likely to be close to median rainfall and temperature for most wool growing regions. The current vegetation and soil moisture maps show that western New South Wales and much of Victoria are entering autumn with below average soil moisture