Demand For Wool Out Of Downturn And Price Rebound

In the middle of 1940s, the production of raw wool fell to its lowest point. Demand was expected to resume in the first half of 09 years, and wool processing went out of the doldrums in January 2008.

Matt Pedersen expects that in the next few months, before the global supply of merino wool falls to its lowest level, the market will bottom out, and fashion trends will return to wool, not just traditional men's suits and knitted garments, but also casual wear and sportswear.

The price of wool is in competition with cotton and chemical fiber. Last year, the price competitiveness of wool exceeded cotton prices because many American growers changed their bio fuel crops.

Matt said the economic environment is tight, and demand in Europe, the United States and Japan has decreased, but consumer spending is still strong in China.

He said that the recent fall in the exchange rate to 95 cents is welcome, which will be conducive to the rebound in wool prices.