Wool prices mixed on inconsistent demand

News release –

Wool prices mixed on inconsistent demand

NZ Wool Services International Ltd reports that today’s wool auctions saw better-styled wools well-supported, while poorer quality types slipped back.

Since the previous sale, on 19 February, currency movement for the New Zealand dollar against the main wool trading currencies has been limited. Currency fluctuations played a minimal role in the sale, with the poorer wools weakening in price mainly in response to lacklustre demand.

Approximately 16,000 bales were offered at today’s combined North and South Island auction in Napier and Christchurch.

According to NZ Wool Services International, small volumes of good to average, well-prepared fine and coarse crossbred fleece wools were in strong demand, with prices increasing between 1.5 and five per cent.

Poorer style coarse fleece and shears attracted limited support, generally falling in price between three and seven per cent, with prices for higher volumes of heavily faulted lines in the North Island suffering most.

Reduced interest from Chinese purchasers undermined prices for first lambs’ wool by between two and four per cent. All oddment types slipped in price six to ten per cent, in line with the poorer performing fleece wools.

According to NZ Wool Services International, ongoing negative economic issues are continuing to impact on the certainty of business, which is reflected in this week’s generally poorer performing market.

Main interest was from Australasian Mills, India, China and the Middle East, with limited support from Western Europe.

Next week’s auction, on 5 March, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 7,000 and 8,400 bales respectively.

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-

© Scoop Media