Market sends wool prices into a spin for global wool prices
By By David Walsh, Accra News Service Aug 20, 2012, 04:01:57 AM EDT Share this article:
A sharp rise in global wool prices prompted traders to brace themselves for a sharp fall in global wool prices, with markets in the European Union and South Africa expecting global wool prices to fall again by the end of the year, according to traders. The global wool price index will average about 10.5% this year and 10% next, according to a survey of 100 markets by the Euromonitor International. Prices fell 6.6% in the last week to EUR5.50 a kilogram, down from 11.3% a month ago in the first week of August.
Whilst domestic traders believe that a sharp fall in prices might well occur next week and next week, global traders think that a more severe decline is unlikely. They believe that global wool prices will fall a further 1.8% next month and 2.4% next year, according to a survey of 250 global traders conducted by Euromonitor in London.
According to markets in Africa and Latin America, buyers in those markets will be unable to absorb a price drop of such magnitude next year, said a report by market intelligence firm WPLG. European markets in particular are struggling to cope with rising costs, according to a statement by Deutsche Bank.
Global wool prices fell from EUR4.35 a kilogram in August to EUR4.28 a kilogram in the first week of September, according to the most recent Euromonitor International survey.
The largest trading market across Europe is India, a key trading partner of the UK with around 90 per cent of global sales and an estimated 14% of global market share.
In Europe, the second largest market, domestic trading of 10 per cent of global sales is already suffering and will continue to suffer.
"I think there are some who <will> panic. But for a start, we <European>traders] have got a good sense of what is happening with the market," said Sangeeta Singh, director of markets at Market Research and Trading consultancy.
She added that traders are also confident that, if global wool prices fall 10%. She said that price falls could start in June or June and last until mid-2013 and she expects the global market to fall into negative territory.
"We also can expect that some investors who are worried about domestic prices might worry even more when the prices of other goods are falling. Prices of goods tend to fall quite rapidly after an event, so the impact of price falls on stocks <and>investments] might also be significant," she said.
One market analyst, however, thinks that some of thes
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The Republican Party of Ohio will no longer endorse an openly gay Republican candidate for governor, saying a candidate's gender and sexual orientation have no bearing on whether he or she should be considered for the post.
The decision comes after months of wrangling and comes about six months after Democratic gubernatorial hopeful John Kasich said he supported same-sex marriage but would not be running for the open seat in May, and about four months after Gov. John Kasich said he did not yet support same-sex marriage.
GOP Party of Ohio Chairman Bill Wilson said that while the party would welcome Kasich's change, it believes it would be wrong for him to be governor against his party's choice of a nominee with the same record as Trump and Pence. He said it is also true that Kasich, not his own personal beliefs or those of party members, has said he would sign into law legislation that would make it more difficult to obtain the licenses of same-sex couples to register to vote.
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A spokesman for Democratic gubernatorial candidate DeWine, Josh Mandel, said he is also working toward an endorsement of a candidate "who is an ally of the LGBT community," while Mandel said that while h
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