Wool sheds to close ahead of tough times - ABC Online

Posted January 23, 2013 08:52:46

With concerns that Newcastle will next month host its last wool sale, a Hunter wool broker is now warning a wool shortage is likely to hit New South Wales within months.

Tough seasonal conditions and heavy sheep losses in bushfires across the State are likely to have a noticeable impact on supplies.

Newcastle wool brokers have confirmed that the lease will not be renewed at the Maryville wool sheds, which will host its last sale next month.

The ABC understands efforts are being made to locate an alternative site in Newcastle.

It has been a mostly positive start to the year for the wool market, with the first two weeks of sales seeing price improvements for finer micron offerings.

But Elders Wool spokesman Craig Brennan says in coming months, supplies are expected to dwindle.

"May until the end of June, supply may become a bit of an issue," he said.

"Especially with the larger offerings that we've had and the amount of wool that's been sold and a very low pass-in rate, we could see a bit of a squeeze on supply as we come closer to the end of this financial year."

Topics: wool, newcastle-2300, muswellbrook-2333