Continued Rise In Price Of Wool

Continued Rise In Price Of Wool

New Zealand Wool Services International Ltd reports that prices at today’s wool sales continued to rise in response to increased demand.

Compared to the previous sale, on 28 January, the New Zealand dollar has increased in value against a weighted indicator of the main international wool trading currencies by 0.68 per cent. While this would normally have pushed local prices down, strong competition over-rode the currency factor to drive prices for most types higher.

In the combined auction of 14,000 bales of North and South Island wool in Napier and Christchurch, 97 per cent of the wool on offer sold.

According to New Zealand Wool Services International, a nominal offering of merino fleece in the South Island rose in price by two to five per cent, with mid micron fleece up between one and four per cent.

Continued strong demand from Chinese buyers kept the price of fine crossbred fleece and shears trending up: nationally they were 1.5 to four per cent dearer than last week. Coarse crossbred fleece and shears ranged from 2.5 to seven per cent stronger, with greater buyer pressure on the better style wools.

Fine lambs’ fleeces, in limited supply due to the present favourable growing conditions, were in particular demand, rising 10 to 14 per cent, with the coarser types increasing by two to five per cent.

Demand for oddments also continued, pushing prices up between one and six per cent, with the North Island wools gaining the most.

Buyer demand today came from widespread markets. China and Western Europe dominated interest in the merino and mid micron wools. Chinese purchasers were also to the fore in the fine and coarse crossbred wools, receiving strong support from Australasian carpet mills, the Middle East and India and more limited support from Western Europe and the United Kingdom.

Next week’s auction, on 11 February, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 10,000 bales and 9,700 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

-ENDS-

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