Wool Growers'' Eye On Rising Australian Dollar

The rising Australian dollar is impacting on the returns of Australian wool growers and the wool growers are keeping their eye on this. The wool market fell at sales last week, with the eastern market indicator on 807 cents a kilo.

The rising dollar and lack of demand from overseas buyers has seen more than 30 per cent sliced off the value of wool since the beginning of the year. Richard Thompson from Schute-Bell says growers are hoping for demand to pick up.

"It''s still the unknown quantity of what the demand is. We all know the supply, which is probably as low as it''s been for nearly four decades, but it''s just getting a handle on what the demand is...there''s still talk that some of these processors stocked up fairly heavily 12 months ago and they''re only just getting to a stage where they''re starting to erode the stocks," he said.