Mixed Fortunes for wool prices

Mixed Fortunes for wool prices

New Zealand Wool Services International Ltd reports that prices at today’s wool sales saw fine wools rise and coarse wools fall in value.

Since the previous sale on 6 November, the New Zealand dollar has dropped between three and nine per cent against the main trading currencies.

According to New Zealand Wool Services International, in the combined auction of 24,300 bales of North and South Island wool in Napier and Christchurch, the merino fleece and finer mid micron wools captured some of this currency advantage, but other types did not.

On the back of the currency effect, coupled with recent strengthening in the Australian market and improved Chinese interest, merino wools improved between six and 12 per cent. The same factors saw 28.5 micron and finer mid micron wools strengthening 1.5 to four per cent compared to the last time these types were on sale, which was on 30 October.

Crossbred hogget wools also benefited from the Chinese activity, improving in local currency between one and 3.5 per cent since they were last on sale, which was on 6 November.

Limited demand for coarse carpet wools was evident, resulting in prices lowering across the board by between 1.5 and 2.5 per cent. Poorer style coarse carpet wools reduced furthest with North Island price levels considerably below those in the South Island.

Main competition came from China, the Middle East, India and Australasian carpet manufacturers, with limited support from Western Europe and Asia.

Next week’s sale of South Island wool offers approximately 5,000 bales and will take place in Christchurch on 27 November.

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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