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Wool Prices Retreat in March

Wool prices have dropped 4% since the end of February, on top of a 2% decline since late January, according to price index data from the Australian wool exchange, a result of softening demand in many parts of the world.

Wool supply had been in somewhat shorter supply at end of last season due to draught conditions in key regions of Australia, which took a toll on wool production, driving up prices and forcing many apparel designers and manufacturers to switch from wool to other fibers.

Since mid-October wool prices have dropped 14% in US$ terms, however. Should prices continue to decline, it might make wool more attractive to buyers and stimulate demand.