There are a host of positives for the next few months for wool and only a few negatives and risks, said Chris Wilcox, a leading analyst and commentator on the global wool industry.
Forecasts for economic growth in the major wool consuming countries are generally optimistic and retail sales are expected to improve. The trade fairs for the 2011/2012 fall-winter season were as buoyant as they have been for several years and wool's presence was strong. Also, world wool supply is very low and will not lift sharply in the near future. These point to the maintenance of current high prices for wool or even further increases.
The major risks are the current upheaval in the Middle East and its impact on oil prices (which could dampen economic growth and consumer spending), and the tsunami in Japan could cause a drop in demand.
"This is just one of the articles written by Wilcox in the new quarterly Wool Journal commissioned by the American Sheep Industry Association (ASI)," commented Rita Kourlis Samuelson, ASI wool marketing director."ASI is excited about the opportunity to have this insight into the U.S. and global wool markets."
The full journal is available by going to www.sheepusa.org and clicking on News.
Written by Chris Wilcox, Wool Journal