Despite the recent fall in prices, Mr Rowe predicted a positive outlook on the back of stable demand for both commodities.
Speaking at the DAFWA Agribusiness Sheep Updates last week, Mr Rowe said up until the recent European financial turmoil, wool had been travelling quite well.
"The price of wool increased from 990 cents a kilogram in 2010, to peak at over 1500c/kg around the start of 2011," he said.
"This shows the confidence in the commodity coming out of the global financial crisis."
Mr Rowe said wool prices were looking good until about July last year, when the concern over the European banking crisis became worse and people became worried Europe would fall over.
"As this went on wool demand declined," he said.
Although demand for wool has decreased, he said there was still demand coming from the US and an emerging consumer group in China, which were strong underlying factors for wool prices to increase and stay up in the future.
Mr Rowe predicted Australia to produce slightly more wool in 2012/13.
He also predicted New Zealand and China to produce less, and for amounts in UK and India to remain stable.
"None of the competing wool growing countries are increasing their sheep flocks," he said.
"Global demand has come off a little, but the other markets in terms of China, USA and India are looking positive.
"It's important to remember one of wool's key markets has tanked and the Western Market Indicator is at the 56th percentile of the five-year long term rolling average.
"With everything going on we're still above average.
"When things do turn around they could do so quite substantially, possibly back to prices that we saw in July last year."
For the sheep meat industry, Mr Rowe said the supply situation was similar to what was occurring with wool, as global sheep numbers remain unchanged.
He said there had been an alignment of sheep flock numbers from Organisation for Economic Co-operation and Development (OECD) countries, to developing countries.
"New Zealand, Western Europe, North America and parts of Asia, are all shrinking their sheep flocks, while countries like Eastern Europe and big parts of Africa are increasing numbers," he said.
Looking at where sheep meat is consumed provides reasons to be positive, Mr Rowe said as it was generally the India Ocean arc and into China, with US the biggest market.
"As a market, the US is great because it's such a dominant player and consumption of sheep meat is still growing there," he said.
On top of that the US had run its sheep numbers down, so producers could expect increased export of processed meat out of Australia to the US.
The other positive about sheep meat was the diversity of key markets for live export, unlike the beef industry that has Indonesia as the major market, followed by a few small subsidiary markets.
"The underlying factor to add to the picture, is the global Growth Domestic Product (GDP) growth," Mr Rowe said.
"It's not occurring in the OECD countries, it's happening in the developing world and it's the developing world where the live sheep export markets exist.
"This shows there are good drivers for demand of sheep meat, with global supply constraints, so it implies markets for sheep will be positive in the medium term.
"While there are a few issues domestically, there are fundamental reasons to be positive about the industry."