Strong dollar not hurting wool exports
Export wool sale prices continue to rise
despite the strong value of Australia's dollar, rising 11% since
June. Wool demand is increasing and the high export rate is not
yet affecting international buyers' competition for the natural
fibre. Traditionally the buyers reduce activity as wool prices
rise, but supplies of wool are low in the manufacturing pipeline
and the international industry needs more wool.
Ben Litchfield, a Schute Bell regional wool
broker said the market signals are good as demand continues
after the recent burst of activity at the speciality fine-wool
sale at Newcastle.
He further said with the strength of the
dollar and the exchange rate pressures, wool market is absorbing
that quite solidly and with that surge we saw in the finer wools
back in Newcastle, it is moving itself into the summer series of
selling on a pretty solid platform and it is consistency we
would be looking at in the market.