Supply Shortage Caused By &Nbsp; Australian Wool Auction Price Again High.

2011 the auctions of Australian wool in the calendar year have come to a final blow in Melbourne! How many people are waiting for this week?

If we analyze it from the figures, according to the latest statistics of Australian Bureau of Statistics

However, the value of Australian wool has increased by nearly 50% compared with the same period last year.

Judging from these statistics, the wool industry is far from the situation of "Ying Ge Yan dance". On the contrary, the wool industry has great pressure and difficult steps.

Under such a premise, when the international situation is unstable and the future of the consumer market is uncertain, next year when the holiday is restarted, the performance of the market may be almost the same as at present, or even more "depressed".

However, it is a question raised earlier. Does this mean a significant drop in prices? Does it mean that the collective "lockout" of the whole industry means that people no longer ask for this unique and lovely fiber? I know that I do not know how to rely on prayer when I know the question.

Despite the fact that the price of Australian wool has plunged to below US $10 next spring, we are still not serious about future market trends. I am afraid we will never be able to stay away from frustration and disappointment.

But in fact, even Australian industry analysts admit that it is hard to judge the direction of short-term market.

Many people only make analysis now without comment.

Because it's really hard to be an old critic. But is it really that difficult? I don't think so.

One of my main concerns is the production of wool in the next year.

According to the summary of various intelligence, I concluded that the total output of wool will not change much next year.

This is basically the same as this year.

Some people would say, is not the number of sheep in Australia will increase by 3% or so? I admit that it will! But who knows that the selling price of Australian lambs can reach as high as A$140150 per day? If I were a herdsman (Yang Nong), what would I think about it? I would not hesitate to send the lamb out now if I had to cut the wool and sell it in 12 months.

This is the most practical problem facing Australian herdsmen.

This means that the number of wool fiber production in Australia will not increase in the near future.

Other countries are also not in the state.

Several volcanic eruptions in Chile this year reduced production of wool by about 20%, which greatly affected the supply of wool throughout South America.

Sheep farmers in various countries are also faced with the contradiction between meat and wool.

Today's terms are called "tangled".

So the situation is clearer.

Since the total amount of wool imported in China has hit the lowest point in nearly 7 years this year, the price of wool is still high. There is only one reason why the supply shortage is causing disaster. At present, Australia's annual output is the lowest in nearly 60 years.

It's not sensational. It's really a big famine.

There will be no major changes in supply and demand this year after the start of the new year.

Such a huge global wool spinning industry has its own inertia.

China's wool textile industry has undergone nearly 10 years of renovation and upgrading, both in terms of productivity and quality.

Now in the "food shortage", hunger is hard to bear, but it has not yet reached the time.

Looking at the needs of the consumer market, including the rapid growth of demand for professional clothing, wool products still have their own foothold.

It is precisely because of these factors that the market situation we see this year will be so confusing, but it will always develop in an established direction.

After the first quarter of next year, when domestic and foreign seasonal orders begin to arrive, although it is possible to reduce the requirement of wool content, it is a matter of deep concern for the shortage of supply and whether prices will rise again on the basis of today's demand.

In the past two weeks, there has been no conscious comment on the performance of the Australian dollar.

There is really no new content to add.

The Australian dollar has been stall over the US dollar for nearly two weeks, but the new problems in the eurozone are beginning to slide, just like a kite with a broken line.

But there seems to be some consensus now.

I mentioned a few months ago about several elements that affect the Australian dollar.

Now, if the Australian dollar is only affected by internal factors in Europe and Australia, the exchange rate with the US dollar will not fall easily by 95 cents.

However, the exchange rate between the Australian dollar and the US dollar is likely to collapse in the short term once the reason is for the United States or because of China.

We have seen many cases of falling 20% in the short term.

So at present, the volatility of Australian dollar is still a concern of Pediatrics.