Latest ANZ Agri Commodity Report says, overall supply of Australian wool onto the market is forecast to grow for at least the next five years. This report builds on the ABARE predictions from earlier in the year, saying wool's fortunes had bottomed out and were rebounding.

Madeleine Swan, Associate Director- Agrobusiness Research, ANZ, says the reason for optimism was based on demand in the Nhemisphere which will drive the Australian wool industry in 2021. While short to medium term wool demand will be dependent on global economic conditions, the overall supply of Australian wool onto the market is forecast to grow for at least next five years, Swan adds.

She expects demand for Australian wool to climb by a marginal 1.7 per cent in 2020/21 to 288 thousand tonne, despite a five per cent fall in the number of sheep shorn

Wool production is expected to rise by 20 per cent by 2025/26 which could lead to a build-up of stockpiles again, she added