Home / Knowledge / News / Textiles / Australian wool, cotton prices expected to rise
Australian wool, cotton prices expected to rise
27
Jun '15
The National Australia Bank’s price and production forecast report expects wool and cotton prices to generally rise in Australian dollar terms.

The NAB report provides production and price forecasts for 2015-16 for seven major commodities within NAB Rural Commodities Index including wool and cotton.

The overall NAB Rural Commodities Index AUD forecast track is forecast to flat-line in the September quarter 2015 before increasing until the September quarter 2016.

After this point, the report forecasts a rising Australian dollar to dent the index somewhat. In US dollar terms, the NAB expects the index to remain relatively stable over the forecast period. The production outlook is more clouded, underscored by the Bureau of Meteorology’s declaration of El Niño in May 2015.

According to the report, wool has rallied since April, with the Eastern Market Indicator at its highest level since mid- 2011. Demand has jumped, with good competition among buyers and reports of stockpiles being cleared. With the wool industry now heavily reliant on exports to China, an uptick in demand from Chinese wool mills on account of easing credit conditions and signs of higher global demand has seen prices increase significantly.

Production in the wool industry has been in decline since the collapse of the reserve price scheme in the early 1990s, compounded by a long term shift from wool to synthetic and cotton substitutes in clothing, says the report.

These trends have led to many producers switching from wool to more profitable lamb operations. However, if the recent higher prices can be sustained, wool grower profitability should improve somewhat. Overall, the report forecasts the Eastern Market Indicator to rise 11.7 per cent in 2015-16 but for production to decline 4.4 per cent over the year.

The report says cotton prices have stabilised and even moderately increased in AUD terms this year after falling in mid-2014. However, decent supply and signs of sluggish Chinese demand have weighed on sentiment.

In 2014-15, Australian cotton production was estimated to have declined 43.5 per cent on markedly lower plantings due to reduced irrigation water availability. Last season’s yields were quite strong however. ABARES forecasts Australian cotton lint production to increase 4 per cent on the back of a 7.1 per cent increase in area planted.

The report predicts a downside risk as a result of continued below average inflows into dams in the Murray Darling basin, and consequently look to a 2 per cent increase in production. The report forecasts prices to rise 9.3 per cent in 2015-16. (SH)

Fibre2fashion News Desk – India


Must ReadView All

UK retailers may face extra £190 mn in business rates

Apparel/Garments | On 21st Sep 2018

UK retailers may face extra £190 mn in business rates

Retailers in the UK are likely to face an extra £190 million on their ...

Courtesy: EFI

Textiles | On 21st Sep 2018

Digital textile printing expected to grow at 20% CAGR

Digital textile printing is at this time about 3-4 per cent of all...

Bangladesh demands better prices for garment items from US

Apparel/Garments | On 21st Sep 2018

Bangladesh demands better prices for garment items from US

Bangladesh sought better prices for its exports, especially garments, ...

Interviews View All

Deepak Jain, Baggout

Deepak Jain
Baggout

We are using Facebook and Instagram to promote ourselves

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Cindy McNaull, Cordura

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Abhishek Dhanuka,

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Liz Manning,

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Maya Simova,

Maya Simova

Inter Expo and Congress Center (IEC) is a prominent exhibition centre in...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Mary-Cathryn Kolb, Brrr°

Mary-Cathryn Kolb
Brrr°

Atlanta-based private start-up Brrr° was founded in 2014 to develop...

Silke Brand-Kirsch, Schlegel und Partner

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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

Leave your Comments


September 2018

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

news category


Related Categories:

Advanced Search