Wool prices expected to rise
Although the wool market has lost some momentum over the past few weeks,there is optimism prices will improve
Although the wool market has lost some momentum over the past few weeks, pushing the indicators of both South Africa and Australia down, there is optimism prices will improve.
The Cape Wools Merino Indicator has now dropped to below the opening level of the season but is still above levels achieved at the same time last season.
In Australia, the indicator has not dropped as much as the local indicator due to the high prices for fine wools.
The optimism for improved prices is based on evidence that consumer demand for wool has been driving the market recently.
According to Australian Wool Innovation analysts, more consumers across the world are looking for wool, and not just in the cooler months of the year.
The advent of Merino wool as a superior fibre worn next to skin for leisure and for sport has seen steady growth in recent years.
Also, more consumers are selecting eco-friendly products.