Volumes and shipping affect local wool prices

News release – Volumes and shipping affect local wool prices

New Zealand Wool Services International Ltd reports that prices eased for most types at today’s wool sales.

In the combined auction of North and South Island wool in Napier and Christchurch, 81 per cent of the wool on offer sold. However, at 28,000 bales, this offering was 28 per cent above the original rostered quantity, which had an impact on prices.

Compared to the previous sale, on 18 February, the New Zealand dollar has eased in value against a weighted indicator of the main international wool trading currencies, but the increased volumes coming forward neutralised the currency effect. A shortage of shipping capacity, caused by freighting providers slashing their services in response to the global recession, means wool exporters are unable to secure sufficient space, which in turn restricts their ability to purchase wool on the local market.

According to New Zealand Wool Services International, a small offering of finer crossbred fleece resisted this trend and stayed generally firm to six per cent dearer, with the very fine types benefiting the most.

Coarse carpet type full fleece was firm to three per cent cheaper, as were the shorter shears, with the better styles holding their value the best.

First lambs wool types were firm to two per cent easier. All oddments were also firm to two per cent cheaper, with better styles receiving more attention.

Main interest today was from Australasian carpet mills, India and China with buyers from the Middle East, Western Europe and the United Kingdom in support.

Next week’s auction, on 4 March, will be in Napier only, consisting of 6300 bales of North Island wool.

New Zealand Wool Services International publishes a detailed weekly report on New Zealand wool auction trends. A summary of this can be viewed at http://www.nzwsi.co.nz. The full report is available by negotiation with the company.

-ENDS-

Attached table

Please find attached tables covering indicators and prices for key wool types from this week's sale.

sale_25.02.10.xls

Note to editor:
The full and detailed version of the New Zealand Wool Services International New Zealand Wool Report is taken by various national and international corporations, exchanges and agencies, including NZX, Reuters, the UK Wool Report, Meat and Wool New Zealand, Australian Wool Exchange and various others including bank economists and analysts.

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