Wool prices: Longer wool resulting in big drop in sheep prices

A greater supply of longer staple-length wool is causing concern for the industry as top makers struggle to process the overlong fibre.

A greater supply of longer staple-length wool is causing concern for the industry as top makers struggle to process the overlong fibre.

Wet seasonal conditions, a national shearer shortage and access limitations brought about by the widespread flooding throughout much of eastern Australia’s prime sheep country late last year has left wool on sheep for longer.

“It’s a direct consequence of the delayed shearing on top of a good season,” Mecardo analyst Andrew Woods said of the wool coming through the system as long as 130mm.

A pen being auctioned at Deniliquin.

Discounted prices of over 10 per cent are being seen for wool 110mm and above as processors reject the undesirable types.

Standard worsted processing of finer wool types generally uses 70 to 95mm greasy staple length, while woollen processing can typically handle overlong wool, classified 110mm and over.

But both systems are struggling to absorb the volume of long wool coming through the market.

“The stuff that we’re seeing now is 110mm up to 130mm long,” Mr Woods said.

“It can’t fit into that worsted sector because it blows out their distribution of fibre lengths in the top.”

Mr Woods said overlength wool tends to be discounted about the same as short-length wool at 55mm or 60mm because it will break to the same dimensions.

Mecardo statistics show the significant shift in dimensions year on year.

At the end of 2021, 28 per cent of 21-22 micron merino wool was 105mm and longer, while in late 2022 it was 41 per cent.

At the same time the proportion of 70-95 mm length wool went from 41 per cent to 33 per cent.

Using a base price of 1942c/kg for 18-micron, 90mm staple length Merino fleece wool, the 110mm length is discounted by eight per cent at 1792c/kg and the 120mm is discounted 13 per cent at 1690c/kg.

Fox and Lillie Rural brokerage and wool technical manager Eamon Timms said the problem is “only starting to increase” and is set to become more prominent over the next couple of months.

“There are people who should have had their sheep shorn in November who still haven’t got them shorn so we are yet to see clips come in with wool that has been left on for 14 or 15 months,” Mr Timms said.

“At those lengths, there’s only a couple of uses for the wool and therefore maybe only one or two bidders on those types which, is never healthy if you’re a seller.”