May 9, 2008
May 9, 2008 - Changes in international market prices have resulted in a fluctuation in the posted wool Loan Deficiency Payment (LDP) rates. Repayment rates have decreased, in general, over the last four weeks.
A four-week slow decline in the Australian wool market has occurred due to poorer quality wools being sold, a 24-year high Australian dollar and concerns with the U.S. economy. Additionally, a fluctuating U.S. currency, since wool is traded in U.S. dollars, has resulted in volatility in the U.S. market. The U.S. Department of Agriculture's LDP rates are based on a combination of international prices and currency exchange rates.
Producers are advised to look at the posted wool prices to determine the best way to participate in the program. The ungraded wool LDP rate jumped 5 cents greasy this week.