Strong demand pushes up wool prices

Strong demand pushes up wool prices

New Zealand Wool Services International Ltd reports today's wool sale in Christchurch was strongly contested, with price gains for most sectors.

Since the previous auction on 10 April, the New Zealand dollar has fallen by one per cent against the United States dollar and 1.5 per cent against the Euro, Sterling and Australian dollars.

According to New Zealand Wool Services International, this weakening currency aided the market lift, however underlying supply shortages accounted for further gains for the 21,000 bales on offer at the sale.

Finer crossbred hogget fleece wools rose between 1.5 and three per cent, with the shorter better style wools benefiting the most.

Good style coarse crossbred fleece rose one per cent, with the better colour shears increasing between two and three per cent. Prices for poor style fleece and shears remained firm.

Longer lambs' fleece wools were strongly contested by purchasers for European spinning and Chinese products, increasing by between three and five per cent, with the shorter types one to two per cent dearer.

The longer oddments were also one to two per cent dearer. Shorter categories rose three to four per cent in response to demand from manufacturers in Europe and India.

Next week's wool auction will be of North Island wool only, held on Wednesday 23 April, comprising 9,000 bales in Napier.

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-

© Scoop Media