Stabilisation continues for wool

News release

Stabilisation continues for wool

New Zealand Wool Services International Ltd reports prices at today’s wool sale were mixed, with falls generally balancing increases.

Of the 21,000 bales on offer at the combined auction of North and South Island wool, 82.7 per cent sold.

According to New Zealand Wool Services International general manager John Dawson, prices between the two islands varied depending on availability and processing demand.

“Mixed pressure from the market resulted in some categories lifting in value, while others dipped slightly. Despite these fluctuations, the indicators for the bulk of the fleece wools eased by just one cent per kilogram compared to last week’s sale.

“Since the previous offering on 3 February the New Zealand dollar dropped 0.78 per cent against a weighted indicator of the main international wool trading currencies, which had restricted impact on some segments of the market.

“Best performed selection today was the finer end of the mid micron wools, which rose by between five and eight per cent, while the coarser end remained steady.

“Fine crossbred fleece and shears remained firm overall. Good colour coarse crossbred fleece ranged from firm to two per cent dearer. Average to poor styles in the South Island were 1.5 per cent cheaper to firm, while the same types in the North Island rose by up to 1.5 per cent.

“In both centres coarse crossbred shears were generally one per cent stronger.

“As larger volumes of first lambs’ wool became available, those types eased in price by between 1.5 and four per cent.

“Oddments in the South Island were two to four per cent cheaper, with the North Island selection firm to four per cent dearer,” he said.

Widespread competition characterised today’s sales, with the prevailing pattern of dominance by India, Australasia and China still in evidence. Buyers from the United Kingdom, the Middle East and Western Europe again took support roles.

Scheduled at next week’s sale, on 17 February, are approximately 5,000 bales from the North Island and 7,000 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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