Slight plunge in wool prices witnessed with season taking off

Wool prices after ending the last selling season continued to remained in a slow, steady declining trend, though with a slight rebound was seen during the last week of the month, according to the Australian Wool Exchange.

The Eastern Market Index ended the month of September, the second in the 2014-2015 selling season, at $4.15 per pound, down $0.10 in the month (2 percent) and about 4 percent season-to-date. During the last week, however, prices increased by $0.06 per pound.

The price decline in USD terms has been due to currency fluctuations, however in local currency, prices were for the most part flat to slightly up.

The declining euro and sluggish European market have hurt demand for the finest fiber count categories, though demand for medium and broad fibers had been weak due to poor quality caused by the unusually dry winter in key regions in Australia. However, a divergence in pricing between the fine counts, like Merino and courser fibers, has reportedly materialized.

At the Nanjing Wool Market Conference held last month, there was concern over the lower wool production in Australia and enthusiasm over an anticipated upward trend in demand for flatbed and circular knit wool made of fiber 19 microns and larger.

In China, the declining cotton prices was seen putting downward pressure on wool prices

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