Wool market hit by poor consumer demand
News release - Wool market hit by poor consumer demand
New Zealand Wool Services International Ltd reports prices at today’s auction of 14,965 bales of North Island wool, in Napier, saw sharp price reductions, despite a favourable currency factor.
Against a weighted currency indicator, taking into account the percentage of wool exported in the main trading currencies of United States dollars, Australian dollars, sterling and Euro, the New Zealand dollar has dropped 2.8 per cent since the previous sale on 20 November.
In normal circumstances, this would push local prices up, however the world economic situation overrode that influence today, driving prices down.
According to New Zealand Wool Services International, a limited offering of full length 32 and 33 micron hogget fleece proved the only exception to strengthen slightly. Other types on offer dropped dramatically, by between four and nine per cent.
Coarse hogget fleece 3/5 inches and longer were 35 to 5.5 per cent cheaper, with the shorter types only one per cent cheaper
Crossbred fleece and shears 2/4 inches and longer were seven to nine per cent cheaper, with 2/3 inches and shorter three to four per cent cheaper.
Early season first lambs wool reduced in price by 1.5 per cent and all oddments ranged between two and four per cent cheaper.
Main interest at today’s sale came from Australasian carpets mills, China and India, with limited support from Western Europe and the Middle East.
Next week’s sale of South Island wool is on 11 December, in Christchurch, offering a total of 8,300 bales.
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.