August 10, 2007
August 10, 2007 - The wool market has rebounded sharply as Chinese buyers re-enter the market.
Last week, prices took a turn for the worse following concerns that China would not buy any more wool because government import quotas had been filled.
But Wednesday's sales saw significant buying with prices increasing by up to 52 cents (Australian) for some microns.
Devon Royce from Techwool, which bought the largest quantity, said although the issue is not resolved, concerns around China were overrated.
"In hindsight, it certainly looks that way, there hasn't been a 100-percent resolution as yet, we expect it will be resolved in the short term," he said.
"There is still quota available in China which has been allocated; supposedly 80,000 tons still available. It is a fairly large amount, you're probably looking at eight to 10 weeks." Reprinted from ABC Rural Australia Staff contact: Rita Kourlis Samuelson, ext. 29