Cavalier Corporation is expecting wool prices to ease back from their highs of the past year.
Wool prices have been under pressure in recent weeks from a soaring New Zealand dollar but at auctions in the past fortnight have regained some of the ground lost to the exchange rate and a seasonal slow-down in international demand.
Cavalier lifted its wool carpet prices by 10% to 20% in the year to take into account an unprecedented 80% rise in cross-bred wool prices.
But managing director, Wayne Chung expects a combination of the record high exchange rate and accompanying buyer resistence will trim wool prices this year.
On Monday, Cavalier announced it had lifted its full year earnings as improved sales in Australia offset declines in New Zealand.
The company made $18.2 million in the year to the end of June - 60% more than the previous year.
Stripping out a large one-off tax item, its underlying profit rose 4% to $17.3 million.
