Carpet types lose further ground at North Is Sales

News release – Carpet types lose further ground at North Island wool sale

New Zealand Wool Services International Ltd reports that demand for carpet types at today’s auction of North Island wool in Napier was limited, resulting in continuation of the price reductions seen in recent weeks.

Since the previous sale on 4 June the New Zealand dollar has remained virtually unchanged against a weighted indicator of the main wool trading currencies, so currency fluctuation played little part in the sale.

Of 14,000 bales on offer today, 58 per cent sold.

According to New Zealand Wool Services International, a nominal offering of longer fine crossbred fleece was four to eight per cent cheaper, while the shorter types were five to nine per cent down as interest from Chinese buyers was muted.

Average style and better coarse carpet type fleeces were three to four per cent cheaper, with the poorer styles performing better, reducing only one per cent. Longer early shorn fleece eased between one and three per cent, with prices for the shorter types five to nine per cent softer.

Prices for first lambs’ wools were down between five and eight per cent, with oddments dropping between four and ten per cent.

As over 50 per cent of the offering was shorter coarse second shear wools, main buyer interest came from local and Australasian carpet mills, with the finer types supported by Chinese interests. Limited support for other categories came from India, Western Europe and the Middle East.

The next wool auction, on 25 June, will be a sale of South Island wool, in Christchurch, offering approximately 18,000 bales.

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.

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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