Wool values continue to fall as dry weather prompts a sell off

Wool prices have dropped for the third consecutive week, with growers selling stock to manage cash flow.

Wool prices have continued their downward trend, with the Eastern Market Indicator falling by 19c/kg, as growers look to maintain cash flow amid ongoing dry conditions.

The market indicator has settled at 1191c/kg for the week, marking the third week in succession of falling prices.

A total of 28,508 bales were offered and 24,467 were sold which resulted in a pass in rate of 14.2 per cent.

Quality Wool area manager for NSW and Victoria, Jenni Turner of Albury, said the market was suffering from a lack of confidence.

“The tone post the tariff announcements has been sombre,” she said.

“There is uncertainty, and we have a two-speed market at the moment.”

Drought-affected wool was coming onto the market at a discount, yet in contrast, Mrs Turner said there was still demand for wool of good quality and meeting the market specifications.

“We are suffering from the predictable effects that come with the continued dry weather patterns,” she said.

Jenni Turner of Quality Wool. Picture: Supplied

Southern NSW wool producer Paul Cocking of Mangoplah said he was concerned about the current prices when combined with the high input costs.

He sold 17-micron wool in the past month at auction for 1492c/kg. Mr Cocking conceded that the quality was affected by dry conditions.

“It was disappointing,” he said

The sheep were only 10 months old and had cut 5kg greasy.

“We are currently hand feeding at the moment, and the water situation is the lowest I have seen it on this property for 30 years,” he said.

Mr Cocking said wool had been his life and something he was passionate about but he was actively destocking, and then dry sowing the paddocks with winter crops once the sheep came off.

According to Australian Wool Innovation’s market the prices have been impacted by the Australian dollar versus the US dollar values.

Merino type wool dropped by 15c to 20c/kg in the past week, and price variances were also attributed to varying quality.

At the Melbourne sales, 17 micron wool recorded the most significant falls, dropping 35c/kg to settle at 1628c/kg, and 21 micron wool fell by 31c/kg to settle at 1417c/kg.

A total of 33,000 bales are set to go under the hammer next week.