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Slipping off the sheep's back
20 May 2003
Wool prices in Australia have slipped 20 per cent in six weeks: from a high of almost 1100 cents per kilogram, prices have declined to 873c/kg. In just the past seven days, prices have fallen by nearly 10 per cent.
Industry analysts are blaming the strengthening $AUD and the SARS outbreak, resulting in lowered demand from Chinese buyers, for the slump.
Wesfarmers says with supplies at a 50-year low and forecasts for a further drop this season, prices should be experiencing an upward pressure. The sharp fall has caught many by surprise, said Wesfarmers national wool marketing manager Ross Bawden.
Mr Bawden says, however, the price slump should only be short-term, with the lack of wool to underpin a price increase.
Australian Wool Industries says the slump would be worse were farmers not becoming more discerning and not accepting lower prices. Every second bale of wool put up for auction is being withdrawn, with farmers hoping for higher prices.
The Daily Telegraph, 20/5/03, page 18.
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