Wool prices edged up slightly in November, helped by a decline in the value of the Aussie dollar that stimulated demand ahead of the Christmas break.
According to reports from the Australian Wool Exchange, the Eastern Market Index ended the month at $4.12 per pound, up $0.03, or 0.65%.
The Australian currency declined in value by almost 3 percent compared to the U.S. dollar during the month, which stimulated demand for Australian wool, resulting in more stable pricing.
Demand for the finest Merino counts, buoyed by the luxury market, remained stable throughout the month.
Demand for medium and broad fibers, on the other hand, began the month in a relatively sluggish mode, but strengthened as the weeks progressed.
It remains to be seen whether prices remain at this level. Declining cotton and other fiber prices have generally weakened demand for wool and put downward pressure on prices, particularly in China, the world’s largest processor and consumer of wool.