Wool prices have further dwindled this week in Australia whatever the fall of the local currency. Demand remains very weak although wool prices have sharply dropped in the last weeks. The negative anticipations triggered by the Brexit and US-China trade war are taking their tool on the wool market.
Wool prices have continued plunging this week in Australia, whatever the fall of the Australian dollar in the current period whereas offer was reaching a 10-year low.
The benchmark indicator has lost 57 Aussie cents or 3.1%, dropping 42 US cents or 3.4%.
Demand is extremely depressed, due to a series of factors.
First, wool prices had previously risen to unbearable levels and retailers have eventually required a return to more acceptable material costs.
Second, financial constraints are currently limiting buying potential in the middle of the wool pipeline.
Third, the looming Brexit and the US-China trade war have triggered very negative anticipations whereas the retail is also confronted with structural modifications.