NZWSI Market Report: Wool Continues to Slide

WOOL CONTINUES TO SLIDE

New Zealand Wool Services International Ltd’s CEO Mr John Dawson reports that market conditions remain unchanged with the strong NZ dollar, Chinese inactivity and hand to mouth demand from elsewhere, combined with higher seasonal wool flows, undermining wool values.

The weighted currency indicator was down 0.38 percent, having no real positive impact as the NZ dollar remains relatively strong.

Of the original 13900 bales put up for auction this week, 2100 bales were withdrawn on the day as sellers choose to hold meantime as prices are now well below long term sustainable levels for wool growers. The balance of the offering of 11819 bales saw 64 percent sold with the remainder passed in.

Mr Dawson advises that compared to the last sales on 26th January;

Fine crossbred full fleece and shears were generally 1 to 5.5 percent cheaper.

Full length coarse fleece were 2 to 6.5 percent cheaper with poor styles affected the most.

Coarse shears were 1.5 to 5 percent cheaper.

Fine first lambs fleece were 5 to 8 percent cheaper with coarse lambs ranging from 7 percent upwards cheaper.

Oddments were 5 to 8.5 percent cheaper except some better styles which remained firm.

Overall, North Island levels are still lower than their South Island counterparts.

Limited competition with buyers covering immediate shipment requirements only, mainly for Australasia, Western Europe, China with support from the Middle East, India and United Kingdom.

Next sale on 9th February comprises approximately 6800 bales from the North Island.

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