Wool Market Generally Holds Its Ground

Wool Market Generally Holds Its Ground

Mr John Dawson, General Manager, New Zealand Wool Services International Limited reports that the 11,272 bale offering of North Island wool this week saw an 87 percent clearance and a strong market for the coarser wools.

The weighted indicator for the main trading currencies was 2 percent lower compared to the last sale on 15th September. The current extreme volatility of the US dollar compared to the New Zealand dollar, had little impact on the local market which is currently supply/demand driven.

Mr Dawson advises that the Fine Crossbred Fleece remained firm; however the considerable amount of Fine Crossbred Shears that made up the bulk of the offering were up to 1.5 percent easier.

Coarse Crossbred Fleece were between 1 and 2 percent stronger with the poorer styles in strongest demand. Coarse Second Shear 2 to 4 inches and longer were 1 to 2.5 percent dearer, however the shorter types continued to find limited support, easing by 1 percent.

Long oddments again attracted strong interest, increasing 3 to 5 percent. The bulkier types of the short oddments also lifted by 4 to 6 percent but again the shorter types received less attention and softened by 2 to 3 percent.

Mr Dawson said “the current oversupply of very short hogget wools has created a wide price margin between wools shorter than 2 to 3 inches and the rest of the market.”

The competition came mainly from China, Australasia and Western Europe, supported by United Kingdom, Middle East and India.

Next sale on 29th September comprises approximately 13,700 bales of South Island Merino, half bred and crossbred wools.

ENDS

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