The rise in wool prices in Australia has been driven in part by the coordinated acceleration in economic growth in the US, Europe and Asia. This has helped push the prices for industrial commodities steadily higher, including wool. Over the past ten-year or more, the trends for each commodity follows the same, overall ebbs and flows. For example, the current price rise for Australian wool is following the general rising trend in prices for industrial commodities such as metals and oil. No doubt the constrained supply of Merino wool has helped boost the price upturn for Australian wool, but the fundamental driver is the improvement in world economic growth.
Further detail including a chart showing trends in commodity prices since 2007 are provided in the full version of the Weekly Newsletter. Available to NCWSBA Members.