Wool prices rise as demand exceeds supply

Wool prices rise as demand exceeds supply

New Zealand Wool Services International Ltd reports that prices at today’s wool sales continued to build on gains made last week.

In the combined auction of 15,800 bales of North and South Island wool in Napier and Christchurch, prices rose across the board, driven mainly by demand exceeding supply.

Since the previous wool sale on 6 March, the New Zealand dollar has risen slightly against the United States and Australian dollars, but weakened up to 1.5 per cent against the Euro and Sterling.

According to New Zealand Wool Services International, this mixed currency movement appears to have been over-ridden by strong demand at today’s sales, mainly influenced by diminishing seasonal volumes, as both North and South Islands move from a weekly to a fortnightly wool sale from now until July.

Fine crossbred fleece and shears strengthened between one and two per cent. Coarse crossbred fleece and shears were 1.5 to 2.5 per cent dearer than last week, with particular demand in the North Island for the average and poor styles.

Crossbred shears rose one to three per cent compared to the previous sale and first lambs wool was 1.5 to 2.5 per cent dearer

Oddments increased between 1.5 to 2.5 per cent, with the shorter types attracting particular interest in the North Island.

The next North and South Island wool auctions will be held on Thursday 27 March, after Easter, comprising 16,000 bales in Christchurch and 11,000 bales in Napier.

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-

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