The end of June heralds the last wool sale of the season and is an opportunity to review the year.
This last sale resulted in dismal indicator prices that were lows for the season and crossbred wools at prices not seen since September 2010.
The market tells us of lack of demand due to the Euopean recession and buyers nervous to purchase with falling prices.
They report that a period of stability is needed before any market lift will be seen and that could take a while.
China has been the dominant purchaser of our wools in both the crossbred and fine wool market, with the UK and Italy a distant second.
Wool Industry initiatives are few and far between to revitalise this product and the fact that the Wool Unity Group has not met for a year reflects pessimism for future price prospects.
Budgeted wool prices for crossbred wool for the coming season looks likely to be in the region of 320-330c/kg greasy and at a rate unlikely to inspire 
farmer investment.
Redundances at Sumitt Wools in Oamaru and at Norman Ellison Carpets in Onehunga, shows the recession is hitting demand for carpets as low new home building and synthetic fibre competition has taken its toll.
The low wool prices are a double blow to sheep farmers with the fall in meat prices once again putting profits and land use options under pressure.
For the record crossbred wool prices started the year in the 650-690c/clean range and sadly finished 30-40% below that around 390-480c/kg clean.
Better branded fine and mid micron wools seemed to have faired better with smaller drops of about 13% over the season.
Proponents of crossbred brands will advocate that this is the secret to crossbred wools future although promtion and publicity around such brands has been as quiet as price rises during this difficult time.
If you can brighten up this pessimistic report with more optimistic wool news it would be a pleasure to read.
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