Curtis Wool Direct

Australian wool yields down

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WOOL yields are down about 2.7 per cent on the same time last year as a result of shorter wools with higher exposure to dust and dirt due to the continuing dry conditions experienced across major wool growing areas.

Australian Wool Exchange (AWEX) market information manager Lionel Plunkett said there had been no enormous change so far, but drought wools were starting to come through and would continue into Christmas and well into the new year.

In a statistical analysis conducted by Mr Plunkett, except for a spike in yield at the end of January (70.9 per cent), it has been a declining road for yield, with most recent figures sitting at 65.7pc.

In fact the figures show yield is tracking well below the previous five-year average.

“From about week 25 or the end of June, if it is a good season, the yield starts to pick up, but the statistics are showing it sitting below the average,” Mr Plunkett said.

“In 2010 we had good rainfall and the better yielding wool has followed in those couple of years after.

“It seems to be a longer term type of trend, not as reactive as I had predicted.”

Mr Plunkett said in an average year, buyers could anticipate what was coming onto the market, knowing the natural trend was for yields to normally drop off after Christmas leading into summer and autumn.

“In these circumstances it probably becomes more important because it’s ‘out of the box’,” he said.

“Most processors have their own specifications for wool, they may have different batches, but they will tend to concentrate on what they know their machinery can do.

“They know what they can work with so all of a sudden if there is fewer of those wools that they are chasing with a minimum yield specifications on their orders.

“They will have to factor that in, or they will have to chase and pay more on those fewer lots that are higher yielding.”

Source: Farm Weekly

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