Production down across the globe

Wool supply concerns are set to continue as countries around the world record lower production levels.

The National Council of Wool Selling Brokers executive director Chris Wilcox said while Australian shorn wool production was expected to increase by a slight 1.4 per cent in 2011–12, supply would still be lower because of a lack of stocks held on farm.

Mr Wilcox said many producers had already sold-off any existing held stock to take advantage of last season’s rising prices.

On top of that, he said Federacion Lanera Argentinas had just reduced its estimate of wool production in Argentina in 2011–12 to 47mkg, a drop of 15 per cent on the 2010–11 season.

“South Africa has also seen its wool receipts fall by more than expected, down 8 per cent in the first half of the season, ” he said.

Mr Wilcox added New Zealand to the list with a fall of 5 per cent.

“All and all, the supply of wool and in particular Merino wool will be lower in 2011–12 than previously expected and lower than 2010–11.”

Given that wool textile pipeline stocks have been said to be low, Mr Wilcox said there was no doubt that considerable interest from mills in securing wool was imminent as supplies could really tighten up in the next few months.