Wool market regroups

News release - Wool market regroups

New Zealand Wool Services International Ltd reports that prices at today's wool auctions saw price increases across the board.

The combined sale of North Island and South Island wool, at Napier and Christchurch respectively, offered a total of 15,000 bales.

New Zealand Wool Services attributes increased prices at the sales to the prompt shipment requirements associated with continuing overseas demand for the fibre.

Against the weighted wool currency indicator, of currencies used for most international wool transactions, the New Zealand dollar was one per cent weaker than during the previous sale on 15 January, which assisted slight price gains. However, strong demand pushed most prices still higher than the currency trend would indicate.

According to New Zealand Wool Services International, mid micron fleece was two to 3.5 per cent dearer and fine crossbred fleece and hoggets¹ wool rose 1.5 to five per cent. Coarse carpet fleece also saw encouraging price increases, with the good colour types up between 2.5 and 3.5 per cent, while poorer styles rose between one and three per cent.

First lambs¹ wool types, 29.5 micron and finer, were 2.5 to 3.5 per cent stronger, with prices for the coarser microns appreciating by between four and seven per cent.

All oddment types lifted between two and four per cent.

Main demand at the sales came from India, China and local carpet mills, supported by Western Europe, the United Kingdom and the Middle East.

Next week¹s auction, on 29 January, will be a combined sale of North and South Island wool, in Napier and Christchurch, offering approximately 10,000 bales and 4,500 bales respectively.

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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