Just before the market could close for ushering the New Year, wool prices leaped over the US $10 per kilogram barrier.
In terms of US dollar, Australian wool price reached a 17-year high while the EMI (eastern market indicator) closed just above 1000 cents marking an increase of about 20 per cent on a 12-month period.
In terms of dollar, however, it was up about 34 per cent. While prices are promising for finer fleeces, the weight tend to drop with rising quality of the fibre.
In spite of a persistent growth in apparel and garment sector, wool in particular has received a negative influence largely because of the fact that the produce is affected by a number of factors like drought, low head count of sheep and lack of sufficient live stock.
Nonetheless, Australia has been one of the major wool producing countries of the world and nearly 65 percent of its yearly production is consumed by China which has earned the reputation for being a center for early stage processing of wool.
US and Japan follows the suit to be the second largest consumer of Australian wool. Although, wool contributes a meager 3-4 percent of the world fibre market in terms of volume, and 10 to 11 per cent by value; it is gradually replacing synthetic and cotton fibre that are being affected by rising oil prices.
In terms of US dollar, Australian wool price reached a 17-year high while the EMI (eastern market indicator) closed just above 1000 cents marking an increase of about 20 per cent on a 12-month period.
In terms of dollar, however, it was up about 34 per cent. While prices are promising for finer fleeces, the weight tend to drop with rising quality of the fibre.
In spite of a persistent growth in apparel and garment sector, wool in particular has received a negative influence largely because of the fact that the produce is affected by a number of factors like drought, low head count of sheep and lack of sufficient live stock.
Nonetheless, Australia has been one of the major wool producing countries of the world and nearly 65 percent of its yearly production is consumed by China which has earned the reputation for being a center for early stage processing of wool.
US and Japan follows the suit to be the second largest consumer of Australian wool. Although, wool contributes a meager 3-4 percent of the world fibre market in terms of volume, and 10 to 11 per cent by value; it is gradually replacing synthetic and cotton fibre that are being affected by rising oil prices.
