Demand outstrips supply at wool sales

Demand outstrips supply at wool sales

New Zealand Wool Services International Ltd reports that prices at today¹s North and South Island wool auctions continued to increase, maintaining the solid start to the trading year seen in the previous two weeks.

On the back of a slight weakening in the New Zealand dollar since the previous sale on 17 January, coupled with lighter than expected seasonal flows, the total combined offering of 20,000 bales in Napier and Christchurch saw price gains across the board.

The drop of the New Zealand dollar, which was down one per cent against the United States dollar since last week, combined with market pressure to push up prices by between 1.5 and four per cent.

Mid micron wools in Christchurch were between two and three per cent stronger, apart from 27 to 29 microns, which remained firm.

Crossbred hogget fleece and shears in both Napier and Christchurch appreciated between 1.5 and four per cent, driven by recent increased demand from China.

According to New Zealand Wool Services International, the strongest competition was for the well grown, better style longer crossbred fleece wools, with prices reaching levels not achieved since last August.

Second shears, lambs¹ fleece and oddments all strengthened between 1.5 and 3.5 per cent.

The next wool auctions will be held on 31 January, again combining North and South Island wool, comprising 9,900 bales in Napier and 7,500 bales in Christchurch.

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-

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