Price Premium Analysis for 2007-2008

National Average Premiums

 

After reaching a high of 81 Ac/kg clean during the first half of the 2007/08 season, the premium paid for staple measured merino fleece wool declined to 57 cents in the second half of the season.  For 2007/08 as a whole, the premium averaged 73 cents.  This figure exceeds the previous highs in 2004/05 and 2003/04, when the premium averaged 66 cents and 62 cents, respectively. 

 

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Table 1: premiums for staple measurement information in Australian superfine and merino fleece wool (c/kg clean)

Region

2006/07 season

2007/08 season

H1 2007/08

H2 2007/08

National

+56**

(53 to 59)

+73**

(69 to 77)

+81**

(75-86)

+57**

(51 to 62)

Northern

+27**

(18 to 37)

+58**

(38 to 77)

+75**

(65-84)

+37**

(18 to 56)

Southern

+56**

(50 to 62)

+87**

(80 to 94)

+94**

(85-103)

+76**

(65 to 87)

Western

+51**

(48 to 54)

+62**

(59 to 65)

+71*

(75-67)

+48**

(43 to 53)

Based on sale prices for classed grower lots only

*    indicates statistical significance at the 5% level

** indicates statistical significance at the 1% level

The ranges in brackets are the 95% confidence intervals

 

 

 

The SM premium for crossbred fleece wool was stable in the first half of the 2007/08 season but collapsed in the second half.  At 8 c/kg clean for the season as a whole, the SM premium fell short of the 10-cent peak registered in 2005/06.   

Table 2: premiums for staple measurement information in crossbred fleece wool (c/kg clean)

Region

2006/07 season

2007/08 season

H1 2007/08

H2 2007/08

National

+7**

(5 to 8)

+8**

(5 to 11)

+10*

(7-14)

+3ns

(-1 to 7)

Northern

+12**

(7 to 17)

+4ns

(-2 to 10)

+9*

(1-17)

+4ns

(-7 to 14)

Southern

+3*

(1 to 5)

+7**

(10 to 3)

+10**

(6-14)

+1ns

(-4 to 6)

Western

+33**

(20 to 45)

+27**

(13 to 41)

+34**

(13-65)

+6ns

(-14 to 25)

Based on prices for classed grower lots only

*    indicates statistical significance at the 5% level

** indicates statistical significance at the 1% level

The ranges in brackets are the 95% confidence intervals

 

 

The size of the SM premium for merino pieces also declined during the second half of the 2007/08 season (see table 4).  For the season as a whole, the premium averaged 42 c/kg clean.  This still exceeded the previous high of 39 cents recorded in 2006/07 and 2004/05, and was well above the low of 26 cents recorded in 2003/04.

 

Table 3: premiums for staple measurement information in merino pieces (c/kg clean)

Region

2006/07 season

2007/08 season

H1 2007/08

H2 2007/08

National

+39**

(36 to 41)

+42**

(39 to 45)

+47**

(43-51)

+28**

(24 to 33)

Northern

+32**

(+28 to 36)

+38**

(33 to 43)

+42**

(36-48)

+20**

(11 to 28)

Southern

+68**

(63 to 74)

+74**

(66 to 83)

+116**

(104-127)

+43**

(32 to 55)

Western

+27**

(21 to 32)

+34**

(29 to 39)

+33**

(26-40)

+43**

(35 to 51)

Based on prices for classed grower lots only

*    indicates statistical significance at the 5% level

** indicates statistical significance at the 1% level

The ranges in brackets are the 95% confidence intervals

 

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