Fed: Wool prices continuing to soar

AAP General News (Australia)
02-12-2001
Fed: Wool prices continuing to soar

CANBERRA, Feb 12 AAP - The Australian wool industry continues to power forward with
prices reaching their highest mark in three years.

Wool is now selling just short of the 800-cents-a-kilogram mark on the back of a strong
demand for dwindling stocks.

Prices climbed 17 cents a kilogram during last week across all wool ranges including
middle to coarse micron groups.

Wesfarmers Dalgety reported both China and Korea were strong buyers in the market,
and a small fall in the value of the Australian dollar was keeping them interested.

"Although many buyers may be uncomfortable watching prices rise so quickly it is hard
to predict a downturn in the near future," it reported.

"The outlook is positive, but prices are not expected to continue their steep rate
of increases they experienced (last) week."

The national average price is now almost 150 cents a kilogram, or about 23 per cent,
higher than it was a year ago.

The Woolmark Company reported the amount of wool held by brokers in January dropped
to their lowest level in five years to 610,000 bales.

But with the WoolStock company still holding just under 500,000 bales, the amount of
wool held in the nation's shearing sheds is still historically high.

Woolmark reported growers are holding on to their stocks, perhaps in anticipation of
even better prices in the weeks to come.

AAP sw/daw/pc/sb

KEYWORD: WOOL

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