Volume Lowers Wool Prices

Volume Lowers Wool Prices

New Zealand Wool Services International Limited’s General Manager, Mr John Dawson reports that the high volume of Second Shear Wools on offer from the North Island saw most types ease. Of the 12,800 bales on offer, 85 percent was Second Shear and related oddments. The variation in volumes and type ranges week on week between the North and South Island sales is creating extreme difficulty in direct market comparison. The weighted indicator for the main trading currencies compared to last sale is 0.68 percent up, adding more downward pressure on the local prices.

Mr Dawson advises that when compared type to type against the North Island sale on 31st May Fine Crossbred Shears 2/4 inch and longer were 2 percent cheaper, however the shorter types resisted the trend remaining firm to 2 percent stronger. Coarse Full Fleece were 1 to 2 percent easier. Coarse Shears 39 micron and coarser which made up the bulk of the offering, suffered the most with levels ranging from 3 to 8 percent softer.

First Lambs also moved in growers favour, remaining firm to 3 percent dearer. Short Oddments were generally firm.

Compared to the last South Island sale on 7th June, most movements were comparable except the shears which were comparatively easier against a limited selection.

Restricted competition with China, United Kingdom and Western Europe principal supported by India, Middle East and Australasia.

Next sale on 21st June comprises approximately 5,900 bales (down 4,100 bales on roster) of South Island wools.

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