Are wool stockpiles forming?

Are wool stockpiles forming?

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Wool industry experts are anticipating a flood of fleece onto the market come next month, with estimations as many as 200,000 bales could be stockpiled in sheds.

With recent upheaval in the international market, plus some tax implications following years of drought and destocking, it is believed many woolgrowers are holding onto their wool in the hope of higher prices in the 2020-21 financial year.

"Wool is not perishable, but when stock has to go, they have to go," Nutrien north-east wool manager, David Hart said.

"Wool doesn't eat grass or drink water. It doesn't really deteriorate in quality, so it can be held on to."

But brokers are warning that hopes of improved returns in the coming months may not eventuate.

Read more here and here.

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