Gains outweigh falls at South Island wool sale

Gains outweigh falls at South Island wool sale

NZ Wool Services International Ltd reports that today’s South Island wool auction saw significant gains for the finer mid micron wools and a relatively stable market for the coarser types.

Since the previous sale on 6 August the New Zealand dollar has appreciated by 0.75 per cent against a weighted index of the main wool trading currencies, a shift that exerted only limited negative impact on the market.

Around 79 per cent of the approximately 16,000 bales on offer today sold, the lowest passing rate for several sales underscoring the market’s strength.

According to New Zealand Wool Services International, mid micron wools 26.5 micron and finer were well sought after, increasing between five and 7.5 per cent; 27 to 30.5 micron ranged from firm to five per cent dearer; and 31 and 31.5 micron fleece appreciated by four per cent.

Fine crossbred fleece and shears succumbed to the currency effect, ranging from firm to two per cent cheaper.

While the large volume of good colour coarse fleece also softened slightly, the smaller volume of average to poor style fleece was firm to one per cent up. Coarse shears eased off the previous sale’s pressured levels, ranging from one to four per cent cheaper, with the shorter types affected the most.

All oddments came under strong competition with most types increasing between six and 12 per cent.

Competition from different international markets was well spread, with increased activity seen from Western Europe as clients begin to return from summer vacations.

Interest for the finer types from Western Europe was good, supported by China, with Australasia and the Middle East most active on carpet type fleece and shears. Indian buyers demonstrated strong support for the oddment types.

The next wool auction will be held in Napier on Thursday 27 August, comprising approximately 15,700 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-

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