High Oil Prices Fail to Boost Wool Market
August 19, 2005
August 19, 2005 -- The wool market remains in the doldrums, despite record-high oil prices, reported ABC Australia.
In the past, the high cost of oil has pushed up the price of synthetic fibers and eventually resulted in better returns for wool. But, as crude oil prices soared to new highs last week, the wool market took another slide.
This lack of correlation is being attributed to wool?s current low profile and a lack of consumer discretional income.
Analyst Chris Wilcox told CNN he believes prices will stay low for the next six months. He is confident the market will pick up next year, although growers will have to weigh their cash-flow situation when deciding whether to sell.