Growth for Wool in Specialized Markets
June 29, 2012
Market Intelligence View suggested that the U.S. and western European markets will remain subdued and that the real-growth prospects for wool reside in new emerging-consumer markets and, in particular, in the increase of wool in the areas of outdoor, urban, infant and maternity wear.
According to the Market Intelligence Report released this month by Woolmark, the price fundamentals remain positive for supporting the wool price in a historically high price range, driven primarily by the tightness of supply and the emergence of China as an affluent consumer market.
The report qualified this statement by saying that the price of wool at auction reflects supply, demand and the risk associated with the purchase. It comments that the recent dramatic gyrations in Australian foreign exchange rate and tightening of lines of credit for buyers are having a dampening effect on the market.
The trade commentary at the International Wool Textile Organization Congress in New York City, N.Y., was a mix of long-term bullishness and short term anxiety. Many said they see the coming months as weak for wool prices before an expected recovery later in the year.
Reprinted in part from Woolnews.net