Wool market taking a sudden wilt

The wool market has taken a sudden slump. The main setback has been China being reluctant to buy due to cuts in Government spending with volatile consumer confidence. Up to 80 per cent of Australia’s wool goes to China, with 50 per cent of that going into local garments.

Lachie Brown, wool sales manager Elders in Victoria, China is likely to return to the market in the next month, with the Chinese New Year being partly to blame for lack of demand.

At the opening of this year’s auction season it was seen that too many wool growers tried to take advantage of a surge in the market.

Fine merino wools were hardest hit, with prices down by five per cent on average over the last fortnight.

It is also observed that Italian spinners have increased their demand for fine wool in the past year.

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