Wool Market Holds Steady

Wool Market Holds Steady

New Zealand Wool Services International Ltd reports that prices at today’s wool sales generally remained firm or rose slightly compared to last week’s North Island sale.

Compared to that sale, on 7 January, the New Zealand dollar was basically unchanged against a weighted indicator of the main international wool trading currencies.

In the combined auction of 24,000 bales of North and South Island wool in Napier and Christchurch, 86 per cent of the wool on offer sold.

Although the price of South Island wool has weakened in local terms compared to the last time it was under the hammer on 17 December, this fall is attributable to the strength of the New Zealand dollar, which has risen by three per cent since then. Prices of North and South Island wool are now effectively directly comparative and parallel the international market.

According to New Zealand Wool Services International, a limited offering of mid micron wools in the South Island was strongly contested, increasing between 2.5 and 4.5 per cent.

Nationally, fine crossbred fleece 35 micron and finer and longer shears also strengthened by 1.5 to four per cent, with the shorter types remaining firm.

Coarse fleece was firm to one per cent cheaper with shears ranging from firm to two per cent dearer. Early season first lambs wool was firm to two per cent dearer.

Oddments received strong support, with the longer types up to five per cent dearer and prices for the shorter styles rising by two per cent.

Competition at today’s sales was evenly spread across a number of markets: buyers from Australasia, China, India and the Middle East dominated, with support from Western Europe and the United Kingdom.

Next week’s sale will be in Napier on 21 January, comprising approximately 9,950 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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