Home / Knowledge / News / Textiles / Wool becoming more competitive
Wool becoming more competitive
24
Sep '08
Australian shorn wool production is forecast to continue its downward trend in 2008-09, reaching an 80 year low of 387 000 tonnes. The global economic slowdown will continue to affect consumption of woollen products, resulting in a softening of demand for raw wool. Reflecting this, the eastern market indicator price (EMI) is forecast to average 880 cents a kilogram clean, around 7 per cent lower than in 2007-08.

In 2007-08, the EMI averaged 945 cents a kilogram clean, 9.4 per cent higher than 2006-07. After reaching a peak of 1045 cents a kilogram clean in January 2008, it declined steadily, ending the season 19 per cent lower. The price decline can be attributed to softening demand brought about by the global economic downturn, combined with a strong Australian dollar relative to the US dollar which made wool more expensive for foreign buyers.

So far this season the EMI has averaged 866 cents a kilogram clean, 5.2 per cent lower than for the same period last year. However, up to mid-September, the EMI averaged 2.4 per cent higher in US dollar terms because of the strength of the Australian dollar relative to the US dollar. The positive effect on wool prices of a decline in the value of the Australian dollar is evident by the 3 per cent increase in the EMI which occurred when the Australian dollar fell below US$0.90 in mid-August and again when it fell below US$0.85 earlier this month. For 2008-09 as a whole, the assumption of a weaker Australia-US exchange rate has led to a marginal upward revision of the ABARE price forecast made in June, to 880 cents a kilogram clean.

The number of sheep shorn is forecast to decline to 87 million in 2008-09 – a fall of 4.4 per cent from the 2007-08 season – as a result of a smaller flock size. Good summer rains in many areas of the wheat-sheep zone are expected to translate into better fleece quality and improved average cut per head during the spring of 2008.

So far this season this has been reflected in the Australian Wool Testing Authority (AWTA) key test data which indicate that staple strength for July and August was 1.3 per cent higher than for the same period last year. For New South Wales, the largest wool-producing state, the increase was even higher at 3.3 per cent. Average cut per head for 2008-09 is forecast to increase by 6 per cent compared to 2007-08, to 4.47 kilograms a head. Despite these positive indicators regarding the wool clip, it is the smaller size of the national flock that will be the key determinant of the wool supply.

In 2008-09, the total supply of wool is forecast to be 424 000 tonnes. Of this, shorn wool production is forecast to account for 387 000 tonnes, 3.3 per cent lower than 2007-08. Wool offerings so far this selling season have provided support for this forecast, with offerings 8 per cent lower than for the same period of last year. While spring shearing is now well underway, no significant reversal in the downward trend intotal offerings is anticipated.

Must ReadView All

L-R Manish Singhai, COO, Peter England; Vinai Kumar Saxena, chairman, KVIC; Ashish Dikshit, business head, ABFRL and Anshu Sinha, CEO, KVIC while signing agreement. Courtesy: ABFRL

Textiles | On 24th May 2017

Aditya Birla & KVIC enter into a strategic partnership

Aditya Birla Fashion and Retail Ltd (ABFRL) and Khadi and Village...

Courtesy: Jabong

Apparel/Garments | On 24th May 2017

Jabong Mood Store redefines online shopping in India

Jabong, India's leading online fashion retailer, has launched the...

Textiles | On 24th May 2017

Starlinger unveils FX 8.0 circular loom for fabric making

Starlinger, a leading supplier of machinery for woven plastic...

Interviews View All

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
May 2017

May 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search