Mixed results at wool auctions

News release - Mixed results at wool auctions

NZ Wool Services International Ltd reports that prices for some types at today’s wool auctions increased due to specific demand and favourable currency factors, while prices for other types diminished.

The combined sale of North Island and South Island wool, at Napier and Christchurch respectively, offered a total of 16,300, with 76 per cent of the offering sold.

Since the previous sale, on 29 January, the wool weighted currency indicator, which accounts for the main trading currencies for wool, drove the New Zealand dollar down by around 2.38 per cent.

According to NZ Wool Services International, types with small volumes available generally saw price gains. These included mid micron fleece, which were one per cent stronger, fine crossbred fleece and shears one to 3.5 per cent stronger and good style coarse fleece two to 3.5 per cent dearer.

Finer first lambs rose between 2.5 to five per cent, with 29 micron and coarser par to 2.5 per cent dearer. All oddments were strongly contested, increasing by between four and six per cent.

The bulk of the offering comprised average to poor style coarse fleece, which attracted strong interest in the South Island, but was poorly supported in the North, resulting in a firm to one per cent cheaper overall market. Most coarse second shears were up to 1.5 percent easier, except for the good style three to four inch wools, which strengthened 1.5 per cent.

NZ Wool Services International says buyers are chasing specific types as clients request prompt shipment, which is creating the current market fluctuations.

Main competition was from Australasian carpet mills, India, the Middle East and China, supported by Western Europe.

Next week’s auction, on 12 February, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 14,000 bales in total, with 7,000 bales for sale in each island.

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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