Chinese Demand Will Boost Australian Wool Prices

Australian wool industry analysts predict that China's strong demand for Australian wool and tight supply will boost the price of wool in 2012.

Although the price of wool is within a few weeks before Christmas vacation

In 2011 and 2010, data showed that the price of crude wool increased.

As of mid December 2011, the auction price of all coarse wool with fineness of 19 microns and over 19 microns was higher than the closing price at the beginning of the year, and the price of coarse wool with fineness of more than 19 microns increased by 32%.

However, compared with a year ago, the price of fine count wool with a fineness of less than 19 microns fell, of which 17.5 micron wool prices fell by 8.1%.

At present, wool producers, exporters, and processing

Peter Morgan, executive director of the Australian wool processing and Export Council, said buyers will still face wool this year.

He said that due to the tight supply of the market, the new wool and stock pressed wool in the pasture this year will be on sale almost at the same time. This will lead to a tighter supply of wool in 1~6 2012 and is expected to be lower than the same period in 2011.

He pointed out that China's domestic wool market may continue to rise, but cotton prices will go down, which may have a negative impact on the wool market.

In addition, global economic confidence will also have an impact on the wool market and its trend.

Morgan also said that the fall in the price of superfine wool may not be attributed to the debt problem of the eurozone member states, because Italy, as a heavy debt burden, is still the biggest buyer of superfine wool.

He also thinks that the rise in wool prices in 2010 may be a rebound after a few years of market slump.

Meanwhile, the Australian National Bank (NationalAustraliaBank) forecasts that the price of wool will reach an average of 11.39 Australian dollars / kg in 2011/2012.

So far, Australia's Eastern market has reached an average price of 12.33 Australian dollars / kg in 2010/2011, up 3.02 Australian dollars / kg compared with the same period last year.

Khan Horn, general manager of the Agriculture Department of the National Bank of Australia, said that the price of Australian wool will remain at a record high next year, but will face considerable headwinds.