Wool prices have remained very strong in Australia as buyers anticipate a new fall of available quantities in the remainder of the season. Volumes exported by Australia have sharply declined in the last 10 years, as reflected by our comprehensive data covering 2008 to 2018. Exports have however risen in US$ terms, due to the surge of prices, especially in the last two years.
Wool prices have continued rising this week in Australia over a strong seasonal demand ahead of fall/winter wool textile production.
The benchmark indicator has gained 24 A$ cents per kilo clean at 1,968 cents, up 1.2% over the week.
Offer has been very limited in Sydney whereas overall available quantity has remained at about 40,000 bales.
A new increase of the local currency has not weakened demand, with the EMI rising 1.5% and 2.3% in US$ and euro terms, respectively.
With supplies expected dropping over a structural drought in Australia, buyers are anticipating higher prices later this year.
10-Year Export Data
Latest export data are below available, covering the past 10 years and confirming the fall of exported quantities.
Volumes of Australian exports have plunged by nearly 13% in the past year following a short-lived rebound in 2017.
In US$ terms however, shipments have continued rising, although only gaining 4.1% by contrast with a 27% surge in 2017.
Exports to Italy have for instance risen 44% in US$ terms in the last five years, whereas shipments to Korea were surging 75%.
Exports to China have dropped 10% in volume terms, however rising 15% in US$ terms.
China continues accounting for about three quarters of total exports whereas Italy only received 4.5% of Australian exports in 2018 in volume terms.
Unit values of fibers shipped to India have surged 14.7% in US$ terms in 2018, reflecting the fall of the rupee and a possible shift to fiber qualities.
Source: Emergingtextiles
