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Home / Knowledge / News / Textiles / Sulky US economy concerns wool market

Sulky US economy concerns wool market

12
Apr '08

Recession in the US market, which has prolonged for quite some time now, is taking its toll on the Australian wool market.

Experts keeping a close watch on the market scenario are expressing concerns over a likely fall in wool prices due to a slowdown in US economy.

Australian wool contractors are suggesting growers to lock their wool sales instead of selling it through the auction system.

It is believe that adopting this strategy would reduce the risks of heavy losses even if prices fall.

Already mills in China are facing the brunt of low demand for woolen garments from American consumers.

However, there are indications that prices for wool may not fall so suddenly but has the probability of coming under extreme pressure.

Although there may be a 50 to 80 cents fall till spring time, the plunge may not be a very long one and the market can be hoped to surface well out of this gloomy situation.

More Textiles News - Australia...