There are indications that after years of lackluster performance, the wool prices may lift up in 2006.

The market for wool is set to rise from April or May, with the biggest rise registering in the finer microns, according to Woolmark Company.

Improvement in prices will be marginal, with a rise of about 10 per cent, said Chief Economist Chris Wilcox.

Japan has surprisingly shown a good recovery.

China and the US too are progressing well.

But the economies of Germany and Italy in Western Europe are sluggish, Wilcox said.

Fibre2fashion.com