Article: DROUGHT CAUSES AUSTRALIAN WOOL PRODUCTION PLUNGE.

Byline: Patty Huntington

SYDNEY - The Australian wool industry closed 2007 with bittersweet news for wool growers and their customers: U.S. prices hit a 17-year high, but production levels fell to their lowest in 61 years.

The Australian Eastern Market Indicator, the index for international wool prices, closed 2007 above 10 Australian dollars a kilogram for the first time in five years. While that represents a 19 percent surge in wool prices over the past year in Australian dollar terms, it equates to a 25 percent price surge in U.S. pricing. On Monday, $1 was worth 1.15 Australian dollars.

Australian wool growers are "reasonably happy" with the prices they are ...

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