Sheep Industry News November 2023

gust to almost 23 million pounds, slightly more than August last year. That is the first month this year where imports had exceeded last year. An increase in lamb from New Zealand exceeded a reduction in Australian lamb compared to a year ago. Imports from both countries were the highest since March. A widening gap between American and Austra lian leg prices has created more price incentive for imports. And the U.S. dollar has been rising in value compared to Australian currency for most of the year. WOOL In the wool market, the first sales of October brought lower prices for finer wools – 19 micron and finer – and even to higher prices for coarser wools. For example, 18 micron declined U.S. $0.05 per pound to U.S. $4.50 per pound. That was the lowest price since September 2020. Twenty six micron wool gained U.S. $0.03 per pound after having remained at U.S. $1.89 per pound for the last four weeks. If weekly offerings follow last year’s pattern, sup plies offered for sale will increase in the coming months. Overall, wool prices continue to trend lower, as they have since peaking in 2022. Risk of an econom ic slowdown around the world is likely contribut ing to lower prices. More wool has been offered for sale compared to a year ago and greater supplies on the market are likely contributing to lower overall prices. Although, relative supplies by micron can affect prices of those qualities. A long, hot summer likely has not helped demand either. Recession fears have certainly affected the prices of other natural fibers, such as cotton. inflation, rising interest rates, incomes and the pos sibility of a recession does weigh on the market. So far, recession fears have not materialized. A little less production than last year should allow for some continued increase in prices. The sharp in crease in imports is a cause for concern and is likely incentivized by higher leg prices and the exchange rate. SUMMARY Overall, uncertainty about economic growth,

November 2023 • Sheep Industry News • 7