Australia’s wool production is forecasted to fall by seven per cent. The decline comes following six season of relatively stable wool production. Seasonal conditions in a number of major sheep producing regions of Australia have been drier than expected, which has resulted in lower fleece weights.

The major sheep regions of Queensland continue to see tough conditions and the sell-off of sheep continues in the state. Even in New South Wales, there are areas where seasonal conditions have been more difficult than expected. Tough conditions are being partially offset by good to very good conditions in north-eastern South Australia and parts of New South Wales.

For the 2015-16 season to November, tests show a reduction in volumes of wool between 20.6 and 24.5 microns, with smaller declines for finer merino wool and for crossbred wool. This resulted in a 0.1 micron decline in the mean fiber diameter for Australia to November.

There has been a release of on-farm stocks held over from previous seasons as well as the forward offering of wool held in brokers’ stores and earlier than usual deliveries of recently shorn wool in response to the spike in wool prices in May and June. But these stocks may not be available in 2015/’16.