Wool Prices Decline in First Month of New Selling Season

After ending the last selling season on a quiet note, wool prices spent the first three weeks of August in a slow, steady decline, according to reports from the Australian Wool Exchange, then rose $0.05 in the last week of the month.

The Eastern Market Index ended the month of August, the first in the 2014-2015 selling season, at $4.25 per pound, down almost 2 percent season-to-date but ahead by 1.5% compared to the same week last year.

The declining euro, and the fact that many in Europe are typically on vacation in August, hurt demand for the finest fiber count categories.

Demand for medium and broad fibers dipped due to poor quality caused by the unusually dry winter in key regions in Australia.

Declining cotton prices have depressed demand for wool, particularly in China. Because of declining demand from China and the resulting impact on margins, trading firm Olan is no longer exporting the fiber.

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