Demand for wool pushes prices up

Demand for wool pushes prices up

New Zealand Wool Services International Ltd reports that most types gained in price at today¹s wool sale, the first of 2011.

A 98 per cent clearance was achieved for the 23,500 bales on offer at the combined auction of North and South Island wool.

According to New Zealand Wool Services International, the strong local market built on substantial recent price gains in other wool producing countries as underlying demand continues to exceed supply.

Since the previous offering on 22 December the New Zealand dollar has risen by 2.45 per cent against a weighted indicator of the main international wool trading currencies.

Mid micron wools were firm to two per cent dearer today. Fine crossbred fleece and shears rose by one to four per cent, with coarse fleece and shears up by between one and 3.5 per cent.

First lambs¹ wools types were one to 2.5 per cent firmer. Oddments were two to five per cent stronger, with the shorter types gaining the most,² he said.

Today¹s sales were widely contested. China, India and Australasia were to the fore once again, while the Middle East, Western Europe and the United Kingdom continue to provide support.

Next week¹s sale is on 20 January, offering approximately 11,500 bales from the North Island and 7,300 bales of South Island wool.

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