South Island wool prices struggle to hold ground

News release: South Island wool prices struggle to hold ground

New Zealand Wool Services International Ltd reports prices at today’s auction of approximately 5,500 bales of South Island wool, in Christchurch, eased slightly compared to last week.

The reduced offering generally saw prices ease slightly in local terms, with most types dropping to similar levels paid at the 20 November North Island sale, where prices were lower than at the same day’s sale of South Island wool.

According to New Zealand Wool Services International, a stronger New Zealand dollar, up by 0.7 per cent against the main trading currencies compared to last week, largely accounted for these lower prices, although the currency effect was compounded by severely restricted international demand.

A small selection of categories, particularly those offering low volumes today, ran counter to this trend. These included 29 and 30 micron mid micron fleece, which were up to six per cent dearer, and the short hoggets wools, which increased in price by up to one per cent.

All other categories were generally up to 1.5 per cent cheaper, except average and poor colour crossbred fleece wools, which came back to the same level as prices paid in last week’s cheaper North Island sale.

Main active markets for the fine wools were Western European spinners. Meanwhile local mills, China, India and Europe supported the carpet types.

Next week’s auction, of North Island wool, will be held in Napier on 4 December, offering a total of 13,200 bales.

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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