Wool prices soften

Wool prices soften

New Zealand Wool Services International Ltd reports that prices softened at today’s wool sales.

In the combined auction of North and South Island wool in Napier and Christchurch, 77 per cent of the 9400 bales on offer sold, with a limited North Island selection.

Although the opening levels were above the previous sale on 20 May, and a weighted indicator for the main international wool trading currencies was 1.45 per cent lower than a week ago, the market softened as the sale progressed

Severe weather stalling shearing raised concerns around reduced quantities in the coming weeks. However, international economic stability and a volatile New Zealand dollar, particularly compared to the United States dollar, combined to subdue local price levels.

According to New Zealand Wool Services International, a small offering of mid micron fleece met with mixed appeal depending on style, micron and length, ranging from 2.5 per cent cheaper to three per cent dearer.

Fine crossbred wools, underpinned by Chinese buying interest, remained firm Coarse carpet fleece and shears, which made up the bulk of the selection, generally eased one to two per cent.

Longer Lambs’ fleece were fully firm with the coarser, shorter types up to two per cent dearer. A limited offering of shorter, finer types were firm to two per cent easier.

Oddments generally resisted the trend and were firm to four per cent dearer

Buyers from Australasian carpet mills, the Middle East, India and China showed the main interest at today sales, supported by Asia, Western Europe and the United Kingdom.

Next week’s auction, on 3 June, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 6900 bales and 5400 bales respectively.

Due to the weather conditions the sale on 10 June has now been cancelled.

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.

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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