The golden fleece is regaining its lustre

31 Oct, 2009 01:00 AM
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WOOL prices have been keeping pace with the Australian dollar despite the high exchange rate, and confidence is now creeping back in the market.

Prices have jumped by 20 per cent since July while analysts have suggested the surge is due to a lack of supply.

Australian Wool Innovation (AWI) director and WA woolgrower David Webster said there has been a change in attitude around the world for wool.

Mr Webster said due to the value of the Australian dollar, in relative terms buyers were now paying the highest they had ever paid for the commodity.

"Wool is starting to appear on shelves in Europe, at a time when retail sales are down by around 45pc," Mr Webster said.

"Wool has held up despite the global financial crisis and the rising Australian dollar."

Mr Webster said China was still the most competitive market.

"The European countries are still not out of the crisis yet," he said.

"But there are still many people out there buying wool.

"My point is there is a major change in attitude for wool.

"The fact is there is pressure on the market, and the signals coming out of this area are positive."

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