Australian wool output down 13% due to drought

SYDNEY – Australian wool output is forecast to be down by 13 per cent for the 2018/19 amid ongoing drought conditions across large swathes of the country. The Australian Wool Production Forecasting Committee forecast of shorn wool production for the 2018/19 season is 298 million kilograms (mkg) greasy, notably lower than its forecast of 305 mkg (11 per cent down) at its November 2018 meeting. The news comes at a time when China, the world’s leading wool processor, has banned the import of South African wool due to an outbreak of Foot and Mouth disease in the country. This double-whammy squeeze on demand is likely to put upwards pressure on global wool prices.