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Falling demand depresses wool
23 May 2008
Wool sales in the United States and Japan are dropping as economic conditions deteriorate and consumers turn away from luxury items. The eastern market indicator price is at $8.79 a kilogram now, down from $10.45 in January and analysts are tipping that it will fall further. "Recently, we've seen a dramatic increase in food prices. As a result, it's highly likely families will increase the proportion of their income they spend on food, which leaves less for wool apparel," said Doug Whitehead, wool analyst at Rabobank. While prices have fallen they are still favourable when compared with around $7.50 per kilogram through the second half of 2006.
The Australian Financial Review, 23/5/2008
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