Superseason 2017/18

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Superseason 2017/18 Wraps Up  

Australia's last wool sale of the 2017/18 season took place last week. Although prices eased in the last week of trading, 2017/18 remains a spectacular season for wool. Prices for wool surged across the Australian markets, and the Eastern Market Indicator (EMI) closed with a 35% over 2016/17.

"It was probably a once in a generation season," said Chris Wilcox, Executive Director of the National Council of Wool Selling Brokers Australia in the NCWSBA's 29 June newsletter. "It was the longest running Supercycle in over 30 years, exceeding the duration of the Supercycle of the late 1980s."

All Micron Price Guides reported by AWEX increased over the 2017/18 season, Mr Wilcox reported.

The largest increases in 2017/18 were for Merino and fine Crossbred wool between 19.5 and 26 microns, with the largest increase (at least in % terms) seen for the 23 micron (up by 62%). The finer Merino wool saw solid but smaller increases over the season; these had seen larger increases over the 2016/17 season.

Overall, over the past two seasons, the prices for all Merino wool has increased by around 60-70%.

Broad crossbred wool fared less well, with wools of 32 micron falling by 15% over the past two seasons.

"Synchronised improvement in major world economies"

One contributor to the excellent raw wool demand and high wool prices has been the synchronised improvement in economic growth in the major economies of the world. This, among other things, is contributing to buoyant consumer confidence in many of the major wool consuming countries, Mr Wilcox said.

Rising consumer confidence in the US and the EU, along with a similar upward trend in China, Japan and South Korea, should boost retail sales of clothing in these major markets. This bodes well for wool as these markets will soon enter the Autmn/Winter 2018/19 retail season.

The National Council of Wool Selling Brokers of Australia representes the interests of Australia's woolgrowers at both national and international levels. It is a founding member of the Federation of Australian Wool Organisations, and has representatives on key Australian wool industry organisations and committees.

 

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