Wool prices strengthen

Wool prices strengthen

New Zealand Wool Services International Ltd reports that this week’s wool sales generally saw prices rise in what was the first significant quantity of wool offered in the new selling season.

In the combined auction of North and South Island wool in Napier and Christchurch, 85 per cent of the 17,800 bales on offer sold.

Strong demand overcame a 0.89 per cent rise in the New Zealand dollar against a weighted indicator of the main international wool trading currencies since the previous offering on 8 July.

According to New Zealand Wool Services International, a small selection of mid micron wools ranged from firm to 1.5 per cent cheaper, with the long finer crossbred fleece ranging from firm to three per cent easier.

Fine crossbred shears were well sought after, increasing in price by up to four per cent.

Coarse carpet type fleece was up to two per cent dearer, with the second shears strengthening between one and two per cent.

A nominal offering of first lambs’ fleece was up to seven per cent dearer for the long wools while the shorter types remained firm.

Long coarse oddments in the South Island ranged from six to 11 per cent dearer, with the short types rising in price by between one and three per cent.

Buyers from China, India, the Middle East and the United Kingdom dominated widespread competition at the sales, with those representing Western Europe and Australasian carpet mills also providing support.

Next week’s auction, on 29 July, will be a combined sale of North and South Island wool, offering approximately 7,800 bales and 6,700 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 . The full report is available by negotiation with the company.

ENDS

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