Australian wool demand expected to pick up

That was according to Endeavour Wool Export founder Josh Lamb who at the KareeWool industry update conference in Bendigo said he suspected China could be back regulating their import next year as they continue their recovery post COVID-19.

"They buy around 80 per cent of our wool and when they're not in the market it does have a detrimental effect as we've seen over the last few months." Mr Lamb said.

He said as a major spender in Australian wool he expects their consumption will be further along the path to recovery next year, which would have a positive effect on the Australian wool market.

"Hopefully going into next year we're going to see a bit more of a normal pattern and I think we are settling back into a normal pattern, forgetting the price of wool, but the trading conditions and business conditions pre-Covid and pre-2019 are starting to emerge again," Mr Lamb said.

"Traditionally this time of year it's always difficult to trade anywhere in the world and we're seeing that at the moment."

According to Rabobank senior analyst Angus Gidley-Baird, economic growth currently was slow, but it was returning to where things were.

"Consumer confidence is returning, but it's not necessarily being reflected in retail sales," Mr Gidley-Baird said.

"We've got to remember that the changes in interest rates we've seen over the last six, to 12 months, they're gonna have a lag effect through the economy, it's going to take a while for that to come through."

Mr Gidley-Baird also said sheep and lamb slaughter in Australia was at a 10 year high, which meant there was a lot of supply but international demand hadn't quite kept up, which also added to low return prices.