COMMODITY PRICE INDEX

The outlook continues to brighten for Australia's sheep farmers. Government forecasters reckon that wool prices will rise by 10% this season, after a 14% gain in 1999-2000, thanks to tighter supplies and improved demand. The value of exports will jump by 17% to A$3.5 billion ($1.9 billion), but exports will be 6% lower by volume. The sinking Australian dollar is helping China, the biggest consumer of raw wool, since it pays in American dollars. China has recently been buying up to 45% of the wool sold at auction. Australia's national stockpile is now down to 700,000 bales. As shareholders in WoolStock, the company that owns and manages the stockpile, growers have received a cash bonus. Most growers and processors oppose the current takeover bid by the Australian Wool Group, a private consortium.