Today's M^3 - Wool Futures Experience 4.8% Hourly Drop

To kick off the week, Wool Futures are experiencing a strong correction, dropping 4.8% within the first hour of trading. Having gone up in essentially a straight line since the beginning of May, wool was due for a decline.



Wool is still the top performing commodity of the year, having gained almost 27% since January with silver the next best performer at 23%.


We had previously commented on the performance of wool futures back on June 12th, when it was up over 30% for the year. The textile company Raymond Ltd. predicted prices would come down, but not quite this soon.

"While it is believed that the prices of wool would continue to move up, we expect that in another two or three months, when the new clip hits the market there may be a price drop, only to firm up later in the year."

(Click on the images for a larger view.
Click here for the current chart of wool futures.
Click here for the current performance of commodity futures.)