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Raw wool prices likely to double over last year
16 May '11
2 min read
The sheep farmers should cash in on the current high prices for wool, an industry expert advised.
As against last year's price of around 50-70p, the buyers this year are likely to procure wool at a price of around £1 to £1.50 per kg.
This two-fold rise in the prices is welcome news for the wool producers, as it is expected to boost the value of wool beyond the shearing cost, a situation, quite different from that in the previous years, when the wool prices were low.
Such rise in prices over the last one year is attributable to several reasons like reducing number of sheep in major wool producing nations like New Zealand and Australia.
However, the expert particularly condemned the speculators who have become active in the commodities market and played a part in boosting wool prices. The expert said that, the speculators for their personal interest are pushing wool prices, which rather should be governed by simple demand-supply rules.
Owing to the current economic slump, as the demand for carpets has been moving sluggishly, majority of the spinning mills in the UK have been functioning for just three days in a week, with no expectation of any swift change in the situation.
As against last year's price of around 50-70p, the buyers this year are likely to procure wool at a price of around £1 to £1.50 per kg.
This two-fold rise in the prices is welcome news for the wool producers, as it is expected to boost the value of wool beyond the shearing cost, a situation, quite different from that in the previous years, when the wool prices were low.
Such rise in prices over the last one year is attributable to several reasons like reducing number of sheep in major wool producing nations like New Zealand and Australia.
However, the expert particularly condemned the speculators who have become active in the commodities market and played a part in boosting wool prices. The expert said that, the speculators for their personal interest are pushing wool prices, which rather should be governed by simple demand-supply rules.
Owing to the current economic slump, as the demand for carpets has been moving sluggishly, majority of the spinning mills in the UK have been functioning for just three days in a week, with no expectation of any swift change in the situation.
Fibre2fashion News Desk - India
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