Low production rates aid wool price
Posted
Commodities traders say the price of wool in Western Australia is being helped by low production rates.
Yesterday's wool market in Fremantle saw sales fall after two positive weeks.
The Wool Agency's Andrew Johnston says the industry is being hit by the global financial crisis as buyers find it harder to secure credit.
But Mr Johnston says low supplies are helping to keep prices up.
"The supply is basically matching the demand. You would not like to see suddenly a huge influx of wool onto the market, you would not want to see an 80,000 bale national offering. At the moment it's in the mid 40s and the market seems to be able to digest that," he said.
Search for news
ABC News Online takes a look at the big stories from 2008.
