News release – Wool market holds firm

News release – Wool market holds firm

New Zealand Wool Services International Ltd reports that this week’s wool sales met a generally solid market, as demand for limited volumes kept prices up, underpinned by a weaker New Zealand dollar.

A 96 per cent clearance was achieved for the 7,881 bales on offer at today’s combined auction of North and South Island wool.

According to the general manager New Zealand Wool Services International John Dawson, the influence of the currency on the market was less important than supply and demand factors.

“Since the previous offering on 9 December, the New Zealand dollar has fallen by almost one per cent against a weighted indicator of the main international wool trading currencies. Steady demand and the limited volumes of wool that are coming forward continue to be the main driving forces, though the currency dropping also helped today’s market.

“A small end of season offering of mid micron wools met a mixed reaction, with the finer end easing by between four and six per cent, while the coarser types increased by 2.5 to five per cent.

“Fine crossbred fleece and shears were up to one per cent stronger with coarse crossbred fleece and shears generally fully firm to two per cent dearer.

“A limited offering of early season lambs’ wool eased between one and two per cent. Oddments ranged from firm to four per cent dearer, with the shorter types benefiting the most,” he said.

According to John Dawson, the keen competition from international purchasers seen during recent months was repeated at today’s auction.

“China, India and Australasia continue to lead the market, while Western Europe, the United Kingdom and the Middle East play supporting roles,” he said.

Next week’s sale, the final sale before the Christmas break, is on Wednesday 22 December, offering approximately 14,500 bales from the North Island and 4,500 bales of South 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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