News release – Wool prices regain strength

New Zealand Wool Services International Ltd reports that prices at today’s wool sale generally gained.

In a small offering of 5500 bales, 78 per cent sold, with prices for most types higher than last week’s sale.

Currency movement played little part in today’s auction, with the weighted indicator for the main trading currencies increasing by just 0.4 per cent since the last sale on 5 May.

New Zealand Wool Services International general manager John Dawson said that, although today featured both North and South Island wool, insufficient quantities of the North Island selection sold to be able to gauge values.

“For the South Island offering, fine crossbred shears rose by 1.5 per cent. Among coarse crossbred types, good colour fleece remained firm, average style wools were up to one per cent stronger and poor styles rose by 2.5 per cent. Coarse second shears were 1.5 to five per cent dearer, with the shorter types recovering the most.

“Long lambs’ fleece also regained value, rising between two and five per cent, with the shorter types barely firm Long oddments were between seven and 12 per cent dearer, while the short types ranged up by between one and 3.5 per cent,” he said.

According to John Dawson, competition at today’s auction was limited. Australasia, Western Europe and the Middle East remained the principal markets, supported by China, India and the United Kingdom.

Scheduled to take place on 12 May, the next sale will comprise an estimated 10,200 bales from the North Island and 10,400 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