Market Surges in North and South Island wool sales

Market Surges in North and South Island wool sales

New Zealand Wool Services International Ltd reports that all types on offer at this week’s combined North and South Island wool auctions made significant gains.

Merino and halfbred wools generally capitalised on the currency shift, which has seen the New Zealand dollar drop by 3.6 per cent against the United States dollar since the previous sale two weeks ago. Wool in those sectors increased in prices between 2.5 and 4.5 per cent.

The largest gains were in the fine and coarse crossbred wools, which rose between four and 8.5 per cent. These types have come under intense purchasing pressure over the last two weeks due to restricted supply.

According to New Zealand Wool Services International, demand is currently out stripping supply as clients, particularly in China and Western Europe, scramble to ship wool either before annual quotas expire, or for delivery prior to Christmas.

This pressure also spilled over into the coarse oddments, which are in limited volumes and increased between 3.5 and six per cent.

Next week’s wool auction, to be held in Christchurch on 29 November, has 6,400 bales on offer.

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