Australian Wool Summary
During the 2010 / 2011 season there was a significant rundown in grower stocks on top of normal production. As sheep numbers have contracted from 180 million to 70 million so wool supply has dramatically reduced. In the year 2000 we sold 1050 million kilograms. In 2010 / 2011 we sold 345 million kilograms a 67% reduction in ten years.
In 2011 / 2012 we are forecast to sell 313 million kilograms, down 4.8% on the previous year. While farmers are rebuilding Merino flocks and Merino wethers are again being retained for wool production the rebuilding of wool supply will be very slow. This should keep pressure on retention of the current wool and sheep prices.