Coarse wool prices bounce

Coarse wool prices bounce

New Zealand Wool Services International Ltd reports that prices for carpet types at this week’s wool sale rose dramatically, while the market for apparel wool eased.

In the combined auction of North and South Island wool, 96.3 per cent of the 13,000 bales on offer sold.

Since the previous offering on 2 September the New Zealand dollar has increased in value against a weighted indicator of the main international wool trading currencies by 1.41 per cent. Ongoing strong demand, coupled with lower than rostered volumes coming onto the market, countered what would normally have been a negative effect caused by this currency movement.

According to New Zealand Wool Services International, a nominal offering of mid micron fleece eased by between one and three per cent at today’s sales, bringing it into line with other fine wool markets.

Prices for fine crossbred fleece and shears gained by between two and five per cent.

Coarser carpet type crossbred fleece and shears rose substantially, increasing by between four and 11 per cent, with the bulk of this offering up by seven per cent.

Oddments also rose in price, generally by between two to five per cent, with some speciality types ranging up to 15 per cent stronger.

Strong competition and a keen bidding tone saw interests from Australasia, China, India and the Middle East dominate proceedings today, supported by buyers from Western Europe, Asia and the United Kingdom.

At next week’s auction, on 16 September, approximately 800 bales of North Island wool and 6,600 bales of South Island wool will be offered, which is 6000 bales less than previously anticipated.

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