FACTORS INFLUENCING UNITED-STATES WOOL PRICE - A REVIEW

There are approximately 10 million sheep in the U.S. today and most ar e considered dual purpose, producing red meat and wool fibre.Wool reve nue contributes only 25 to 30% of the total income on a per ewe basis; however, in some farm flocks with coarser wool sheep, wool may contri bute less than 10% of the total income. Fluctuations in domestic lamb prices are often a greater influence on the contribution of wool to to tal income than changes in wool prices. Wool prices in the U.S. are la rgely influenced by fluctuating international markets. The volume of U .S. wool is relatively low compared to that of Australia and New Zeala nd; thus, the U.S. wool market has minimal influence on domestic and i nternational wool prices. However, the price a U.S. producer receives can be influenced upward or downward by several factors that are usual ly under his control. This study reviews the domestic factors which co ntribute to price variation in the marketing of American wool.