Prices up as wool market regains control

Prices up as wool market regains control

New Zealand Wool Services International Ltd reports that prices for most types at today’s wool sales were up, despite an unfavourable currency movement.

In the combined auction of North and South Island wool in Napier and Christchurch, 78 per cent of the 14,250 bales on offer sold.

Although the weighted indicator ranking the New Zealand dollar against the main international wool trading currencies was 1.76 per cent higher than the previous sale on 27 May, which would normally have a negative impact on local price levels, interest in the bulk of today’s offering was stronger than anticipated.

According to New Zealand Wool Services International, a nominal offering of mid micron fleece, between 27 and 30.5 micron, strengthened two to four per cent, with prices for the fine crossbreds increasing between 1.5 and 3.5 per cent.

Finer carpet type fleece wools were strongly contested, gaining in price by six per cent. Coarser good colour fleece rose by up to four per cent, with the other styles generally firm. Coarse shears ranged from firm to five per cent dearer, with poorer styles in the North Island benefiting the most.

Prices for combing lambs’ fleece ranged from firm to one per cent down. A small selection of fine short lambs’ wool was subject to intense competition, with prices ranging from four to 15 per cent dearer, amongst which the lots in the South Island benefited most. Shorter, coarser lambs’ fleece was firm to two per cent stronger.

Oddments were all firm to three per cent dearer.

Buyers from China, India and the Middle East dominated widespread interest at today’s sales, with support demonstrated by the United Kingdom and Australasian carpet mills.

With next week’s scheduled sale cancelled due to the recent poor weather throughout the country, the next rostered wool auction will be a combined sale of North and South Island wool, in Napier and Christchurch, on 17 June, offering approximately 9,000 bales and 10,000 bales respectively, weather permitting.

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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