While wool prices have fallen sharply in US$ over the past 4 weeks (despite the lift this week), prices for cotton have also fallen abruptly. Since the start of March, the Eastern Market Indicator is down by 19% while the CotLook A index is also down by 19%. Prices for synthetic fibres seem to have fallen by less (although full March data is not yet available). As a result of the changes in prices for wool and other fibres, the wool price ratio against cotton and synthetics has fallen back in the past 12 months. However, the ratio remains above the average for the past decade both for cotton and for synthetics.
Further details including a chart showing the relativity of Australian wool (as measured by the Eastern Market Indicator) against the price for cotton and synthetic fibres are provided in this week’s edition of the Weekly Newsletter. Available to NCWSBA members.