Wool futures are expected to dip later this year from their highest prices in more than 16 years, textile company Raymond Ltd. states.
Australia, the globe's top producer and exporter of the commodity, has seen prices of the soft fiber skyrocket 39 percent thus far this year, Bloomberg reports. The International Wool Textile Organization said global production of the fiber has dropped to its lowest amounts in 85 years.
"Wool prices have been on an exceptional rise," Aniruddha Deshmukh, president of textiles with Raymond, told Bloomberg. "While it is believed that the prices of wool would continue to move up, we expect that in another two or three months, when the new clip hits the market, there may be a price drop, only to firm up later in the year."
Wool futures closed even on Wednesday at $15.15 per kilogram.
The New Zealand Herald reports the index for meat, skins and wool dropped 0.7 percent last month but was situated 38.6 percent higher than May 2010.
Reprinted from danielstrading.com